Latest news with #Mattson
American Military News
19 hours ago
- American Military News
Second suspect arrested in SoHo cryptocurrency kidnapping torture plot
A second suspect turned himself in Tuesday for questioning in the kidnapping of an Italian man and torturing him inside a luxurious SoHo apartment to get access to his cryptocurrency account, police said. The new suspect surrendered to detectives at the 13th Precinct stationhouse and is being questioned with charges pending. Police believe the new suspect helped cryptocurrency trader John Woeltz, 37, imprison and torture the 28-year-old victim for 17 days. The victim came to the U.S. to visit Woeltz's chic townhouse on Prince and Mulberry Sts. Woeltz was arrested Friday shortly after the victim managed to escape and flag down a traffic enforcement agent, who contacted police. Dressed in a plush robe, Woeltz was hauled down to the 13th Precinct stationhouse barefoot, where he was charged with assault and kidnapping. He was ordered held without bail following his arraignment Saturday. As soon as their victim arrived at the townhouse, Woeltz and his accomplice took his passport and electronics and told him he couldn't leave, police said. The two bound their victim's wrists and over the next three weeks subjected him to 'beatings including but not limited to the use of electric wires to shock him, using a firearm to hit him on the head, and pointing the firearm at his head on several occasions,' prosecutors said at Woeltz's arraignment Saturday. '[They] used a saw to cut his leg, urinated on the victim, forced him to smoke crack cocaine by holding him down and forcing it into his mouth.' The duo also 'tied an airtag around his neck with a chain or wire,' Manhattan Assistant District Attorney Michael Mattson said. 'They [said they] would kill his family and they would find the victim if he left.' After apprehending Woeltz, cops found disturbing Polaroid photos of him and his accomplice torturing their victim and holding a gun to his head. Some time during the victim's capture, Woeltz and his accomplice managed to get printed T-shirts of the victim smoking crack. The shirts were found in the home, along with body armor, night vision goggles, ammunition and ballistic helmets, officials said. On Friday morning, Woeltz 'carried the victim to the top flight of stairs in the townhouse and hung the victim over the ledge as the defendant threatened to kill the victim if the victim would not provide the defendant with the victim's bitcoin password,' Mattson said. After being pistol-whipped once again, the victim finally consented but said he needed a laptop to retrieve the password, the prosecutor said. 'When the defendant left the victim to retrieve the victim's laptop, the victim was able to escape down the stairs,' Mattson said. 'The victim was bloodied and had no shoes on.' He was taken to Bellevue Hospital, where he was treated and released. Woeltz is facing 15 years to life if convicted. Woeltz has been featured as a speaker at several cryptocurrency conferences and has 'nearly a decade of experience with technology startups in Silicon Valley,' according to online profiles. Woeltz's mother Joan Woeltz said her son was an early believer of cryptocurrency and 'had been mining Bitcoin from the age of 12.' During his travels in the crypto world, he had been taken in and corrupted by another cryptocurrency trader who systematically isolated him from his family and may have been the mastermind of this scheme, the mother claimed. 'We've been concerned about this person entering his life and kind of controlling it,' she said in an exclusive interview with The News. 'My family and I have been concerned for some time for John's well being and what influence he was under with these people.' ___ © 2025 New York Daily News. Distributed by Tribune Content Agency, LLC.
San Francisco Chronicle
5 days ago
- Business
- San Francisco Chronicle
Judge agrees to release jailed Sonoma developer Kenneth Mattson
A federal judge in San Francisco allowed a prominent Sonoma developer facing fraud charges to be released from custody after setting his bail at $4 million Wednesday. Kenneth Mattson was arrested last week after prosecutors accused him of orchestrating a protracted Ponzi scheme in which he allegedly siphoned millions of dollars from investors in his real estate companies. After a five-hour hearing in which multiple people who said they were defrauded described the desperation, grief and shame of losing their life savings after investing with Mattson, Magistrate Judge Alex Tse agreed to release the embattled developer on the condition that he avoid unnecessary travel, wear a GPS monitor and avoid any large financial transactions, among other conditions. Many of Mattson's former clients had hoped that Tse would order Mattson held in custody until his trial. At the beginning of the hearing, they described the fear and pain they had gone through learning that their retirement savings had essentially disappeared. More than 70 people attended the hearing — forcing courthouse officials to move the proceeding to a larger courtroom on the 19th floor of the Phillip Burton Federal Building in San Francisco. One woman said she and her relatives, including her husband's family and her sister, had invested with Mattson for almost three decades. The stress of the past year had been so severe, she said, in tears, that her sister tried to take her own life. 'My sister almost died over this,' she said, addressing Mattson directly. 'For that I will never forgive you.' Mattson, dressed in a black T-Shirt over a green jumpsuit, showed no emotion as she or others spoke. Others described having to visit food banks to be able to eat, and the shame and anxiety of discovering their life savings, their retirements, their IRAs, were all gone. 'The lives we planned for and diligently worked toward were taken away by Ken Mattson,' said Mike Morse, an investment banker who told the court he invested $2.6 million with Mattson. He described Mattson's behavior as a kind of 'financial murder.' Another woman, Gwen Piercy, spoke about meeting Mattson more than 40 years ago, when her parents introduced her to him. Last year, as Mattson's alleged fraud came to light, the monthly checks she received vaporized. The physical strain of the ordeal caused her hair to fall out, she said, and friends deserted her, worrying she would ask them for money. Now, she goes to a local food bank so that she has enough to eat. 'This is not only financial abuse but senior abuse,' she said, drawing applause from those in the audience. Another woman, who identified herself only by her first name, Denise, said she and her family loved Mattson 'with all our hearts.' He had been so close to their family that after her father died last year, Mattson served as a pallbearer at his funeral. They'd stood by him even after the fraud allegations emerged last year. But their support soon turned to a sense of betrayal when, one month after the funeral, Mattson stopped sending regular investment checks to her mother, who was struggling with a serious autoimmune disease. 'Thank God my dad had already passed away,' the woman said. 'If this hadn't killed him, it would have broken his heart.' The detention hearing on Wednesday came after Mattson's stunning arrest last week at a Napa gym. Prosecutors and his defense attorneys sparred for hours over many basic facts of the case, before Judge Tse agreed to allow Mattson to be released into the custody of his wife, Stacy Mattson, to live in their home in Sonoma on Castle Road. Prosecutors believe that Mattson committed widespread fraud; but during the hearing, Mattson's attorneys presented a hint of their likely defense — arguing that Mattson's clients were still receiving payments last year until Mattson's business partner, Timothy LeFever, shut him out of the real estate development business they owned, LeFever Mattson. Mattson attorney William Frentzen predicted that Mattson's clients' 'mistrust and anger are going to find a different target as this case plays out.' Mattson attorney William Frentzen also argued that government prosecutors had charged the developer with obstruction of justice, without evidence, and in an unguarded moment in court, acknowledged that federal investigators had also targeted — but ultimately did not indict — KSMP, another business entity that Mattson owns with his wife, Stacy Mattson. The admission startled Tse, who asked 'Did you really want that out in public?' Prosecutors had asked Tse not to release Mattson from custody. Ultimately, Tse agreed to allow Mattson to be released after he and his relatives posted $4 million bail, secured with $200,000 in cash, and two homes as collateral — one owned by Stacy Mattson in Piedmont, and another by her sister in Nevada. The judge also ordered Mattson to submit to GPS monitoring, to transfer ownership of three firearms he owned (but no longer held in his possession) to a relative, to report all financial transactions of more than $5,000 to pretrial services, and not to solicit or make any new investments of any kind. Tse also ordered him to surrender his passports and not to harass any witnesses, jurors, victims or other court officers related to the case. Over decades, Mattson and LeFever amassed a real estate investment portfolio worth an estimated $413 million, including a $146 million stronghold of businesses and residential properties in the Wine Country town of Sonoma. Mattson split his time between several multimillion dollar houses — a nearly $10 million mansion in Piedmont and a Sonoma estate — and drove classic cars including a Rolls Royce. Just over one year ago, Mattson's real estate empire began to crumble. LeFever accused Mattson of stealing money from clients and their businesses in an email to their clients and said he had informed the U.S. Attorney's Office and Securities and Exchange Commission of his suspicions. Federal officials said Mattson took at least $28 million from investors for 'off-books' investments in two of his investment companies and breached his fiduciary responsibility to LeFever Mattson, the company he and LeFever ran together. Mattson's scheme 'collapsed' when Mattson 'was no longer able to raise new investor money to pay existing investors,' prosecutors said. Mattson's attorneys, in a court filing ahead of Wednesday's hearing, pushed back against the government's claims that 'his alleged substantial financial means' made him a flight risk. They argued that Mattson had remained in Sonoma once the investigation began and had been cooperative. They claimed that some of the $9,000 in cash federal agents seized during Mattson's arrest had come from monthly rent he'd collected from tenants. Mattson's attorneys pointed to tax documents and business records that reportedly show that more money 'flowing' into business accounts 'than flowing out,' which would make it 'the first Ponzi scheme in history to cost the perpetrator far more than he stole from others.' Prosecutors' effort to keep Mattson in custody was based on 'the thinnest of pretexts and predicated on misunderstandings of fact,' the attorneys said. In response, the government challenged many of Mattson's assertions, arguing that the evidence Mattson presented was misleading and that their investigation revealed he was taking millions of dollars from a key business account 'to pay for mortgages on his personal properties and other personal expenses.' Prosecutors told the judge they were 'deeply concerned' that Mattson and his wife had refused 'to provide any financial information' to the court, which is a standard requirement. The charges included seven counts of wire fraud, one count of money laundering, and one count of obstruction of justice for destroying records in a federal investigation. If Mattson is convicted, he faces a likely prison sentence of more than 15 years in prison. Mattson also faces additional sanctions from the Securities and Exchange Commission, which filed a related civil enforcement action against Mattson and one of his companies, and several lawsuits from investors.
Epoch Times
6 days ago
- Epoch Times
Second Crypto Investor Surrenders in Manhattan Kidnapping, Torture Case
A second cryptocurrency entrepreneur has turned himself in to police in connection with the alleged abduction and prolonged torture of an Italian man inside a luxury Manhattan townhouse, authorities said Tuesday. William Duplessie, 32, faces a range of charges, including kidnapping, assault, unlawful imprisonment, and criminal possession of a weapon, according to police. The Manhattan District Attorney's Office didn't immediately return a request for comment from NTD News. His surrender comes four days after the victim—a 28-year-old Italian national—managed a dramatic escape from the SoHo residence, where he told police he had been held captive, beaten, and threatened for nearly three weeks. Duplessie's arrest follows that of John Woeltz, 37, another crypto investor, who was Both men have been described in online profiles and Related Stories 5/26/2025 5/12/2025 Woeltz was described as a silicon valley investor and a former board member at Sprocket, a nonprofit economic development organization and entrepreneurship hub based in Paducah, according to a 2020 interview with The Paducah Sun. In a 'Like many in our community, we are shocked and saddened by these events. These allegations are deeply troubling and feel profoundly out of character from the person we came to know. Our thoughts are with everyone affected,' according to the Kentucky-based news outlet. Stealing Bitcoin According to prosecutor Michael Mattson, the victim arrived in New York City from Italy in early May and was lured to the eight-bedroom townhouse on May 6, where the alleged scheme to steal his Bitcoin began, Mattson told a Judge on Saturday. Over the next 17 days, the man told police he was subjected to a range of abuses: his wrists bound, shocked with electrical wires, pistol-whipped, cut on the leg with a saw, and forced to smoke from a crack pipe. At one point, he said, his captors dangled him from the top of a staircase and threatened to kill him if he did not provide the password to his Bitcoin account, according to Mattson. The victim said he was led to believe his family was also in danger if he refused to cooperate. Fearing for his life, he finally agreed to give up the password on Friday morning, May 23. When his captors left to retrieve his computer, he seized the opportunity to escape. A search of the townhouse uncovered many pieces of evidence, including cocaine, a saw, chicken wire, body armor, night vision goggles, ammunition, and polaroid photos showing the victim with a gun pointed at his head and a crack pipe in his mouth. The victim was hospitalized with injuries consistent with his account, including wrist wounds and facial cuts, Mattson said. The case comes amid a surge in violent crime targeting cryptocurrency holders. Similar incidents have been reported internationally and across the United States, including the recent rescue of a crypto entrepreneur's father in Paris after attackers severed one of his fingers, and a failed abduction attempt of another entrepreneur's daughter. Last August, a Connecticut couple was kidnapped in a ransom plot linked to a $240 million crypto heist allegedly involving their son. A recent FBI report found that internet crime losses soared to $16.6 billion in 2024, with cryptocurrency theft accounting for the largest share at over $6.5 billion—up nearly a third from the previous year. Woeltz was arraigned May 24 on charges of kidnapping, assault, unlawful imprisonment, and criminal possession of a firearm, and was ordered held without bail, according to court records. Mattson said he posed a flight risk due to his access to a private jet and helicopter and ordered him to surrender his passport. He is due back in Manhattan criminal court next week. Authorities indicated that additional suspects may be involved, referring to an 'unapprehended male' mentioned in court records. The investigation remains ongoing, and the victim's name has not been released due to privacy concerns. The Associated Press contributed to this report. From NTD News
Yahoo
7 days ago
- Business
- Yahoo
Second suspect arrested in SoHo cryptocurrency kidnapping torture plot
A second suspect turned himself in Tuesday for questioning in the kidnapping of an Italian man and torturing him inside a luxurious SoHo apartment to get access to his cryptocurrency account, police said. The new suspect surrendered to detectives at the 13th Precinct stationhouse and is being questioned with charges pending. Police believe the new suspect helped cryptocurrency trader John Woeltz, 37, imprison and torture the 28-year-old victim for 17 days. The victim came to the U.S. to visit Woeltz's chic townhouse on Prince and Mulberry Sts. Woeltz was arrested Friday shortly after the victim managed to escape and flag down a traffic enforcement agent, who contacted police. Dressed in a plush robe, Woeltz was hauled down to the 13th Precinct stationhouse barefoot, where he was charged with assault and kidnapping. He was ordered held without bail following his arraignment Saturday. As soon as their victim arrived at the townhouse, Woeltz and his accomplice took his passport and electronics and told him he couldn't leave, police said. The two bound their victim's wrists and over the next three weeks subjected him to 'beatings including but not limited to the use of electric wires to shock him, using a firearm to hit him on the head, and pointing the firearm at his head on several occasions,' prosecutors said at Woeltz's arraignment Saturday. '[They] used a saw to cut his leg, urinated on the victim, forced him to smoke crack cocaine by holding him down and forcing it into his mouth.' The duo also 'tied an airtag around his neck with a chain or wire,' Manhattan Assistant District Attorney Michael Mattson said. 'They [said they] would kill his family and they would find the victim if he left.' After apprehending Woeltz, cops found disturbing Polaroid photos of him and his accomplice torturing their victim and holding a gun to his head. Some time during the victim's capture, Woeltz and his accomplice managed to get printed T-shirts of the victim smoking crack. The shirts were found in the home, along with body armor, night vision goggles, ammunition and ballistic helmets, officials said. On Friday morning, Woeltz 'carried the victim to the top flight of stairs in the townhouse and hung the victim over the ledge as the defendant threatened to kill the victim if the victim would not provide the defendant with the victim's bitcoin password,' Mattson said. After being pistol-whipped once again, the victim finally consented but said he needed a laptop to retrieve the password, the prosecutor said. 'When the defendant left the victim to retrieve the victim's laptop, the victim was able to escape down the stairs,' Mattson said. 'The victim was bloodied and had no shoes on.' He was taken to Bellevue Hospital, where he was treated and released. Woeltz is facing 15 years to life if convicted. Woeltz has been featured as a speaker at several cryptocurrency conferences and has 'nearly a decade of experience with technology startups in Silicon Valley,' according to online profiles. Woeltz's mother Joan Woeltz said her son was an early believer of cryptocurrency and 'had been mining Bitcoin from the age of 12.' During his travels in the crypto world, he had been taken in and corrupted by another cryptocurrency trader who systematically isolated him from his family and may have been the mastermind of this scheme, the mother claimed. 'We've been concerned about this person entering his life and kind of controlling it,' she said in an exclusive interview with The News. 'My family and I have been concerned for some time for John's well being and what influence he was under with these people.'
Yahoo
25-05-2025
- Yahoo
A crypto investor is charged with kidnapping and torturing a man in an NYC apartment for weeks
NEW YORK (AP) — A cryptocurrency investor has been arrested and charged with kidnapping a man and keeping him locked up for weeks in an upscale Manhattan apartment, where authorities say he was beaten, shocked and led to believe that his family was in danger if he didn't give up his Bitcoin password. John Woeltz, 37, was arrested Friday night after the victim escaped from the eight-bedroom town house and flagged down a traffic officer on the street for help, according to prosecutors. Woeltz was arraigned Saturday on charges of kidnapping, assault, unlawful imprisonment and criminal possession of a firearm, court records show. He was ordered held without bail, a spokesperson for the Manhattan district attorney's office confirmed Saturday. His lawyer, Wayne Gosnell, said Saturday in an email that he had no comment. The 28-year-old victim arrived in New York City from Italy in early May, a law enforcement official told The Associated Press. The official was not authorized to speak publicly about the ongoing investigation and did so on condition of anonymity. It's not clear how or if the two knew each other, but the district attorney's office said in an email that prosecutor Michael Mattson told a judge Saturday that the victim, whose name has not been released, was abducted on May 6. Mattson said others were involved in the scheme to empty the victim's Bitcoin wallet. That includes a person referred to in court records as an 'unapprehended male.' The victim said he was bound by the wrists and tortured for weeks inside the apartment. His captors, according to prosecutors, drugged him, used electric wires to shock him, hit him in the head with a firearm and, at one point, carried him to the top of a flight of stairs where they dangled him over a ledge and threatened to kill him if he didn't share his Bitcoin password. Believing that he was about to be shot, the victim was able to escape Friday after agreeing to give up his password, which was stored on his laptop in another room. When the suspect turned his back, Mattson said, the victim ran out of the apartment. The victim was taken to a hospital and treated for injuries that Mattson said were consistent with his descriptions of being bound and assaulted. A search of the town house turned up a trove of evidence, Mattson said, including cocaine, a saw, chicken wire, body armor and night vision goggles, ammunition and polaroid photos of the victim with a gun pointed to his head. Woeltz was ordered Saturday to surrender his passport. Prosecutors said he has the means to flee, including a private jet and a helicopter. He is due back in Manhattan criminal court next week. ___ Yamat reported from Las Vegas. Associated Press writers Susan Haigh in Hartford, Connecticut, and Becky Bohrer in Juneau, Alaska, contributed to this report.
