Latest news with #wireFraud
CBS News
16-05-2025
- Business
- CBS News
California man who tried to evade FBI with underwater scooter pleads guilty to $35 million Ponzi scheme
SACRAMENTO — A Northern California man who tried to evade FBI agents with an underwater scooter pleaded guilty to a $35 million Ponzi scheme, prosecutors announced Thursday. Matthew Piercey, of the Shasta County town of Palo Cedro, was convicted of 27 counts including wire fraud, money laundering and witness tampering, the U.S. Attorney's Office Eastern District of California said. Prosecutors said that between 2015 and 2020, Piercey operated an elaborate investment fraud scheme under the guise of his two companies, Family Wealth Legacy and Zolla. He solicited funds from investors using false claims about trading algorithms, liquidity, and the financial stability of his two companies. Piercey promised investors guaranteed returns using an "Upvesting Fund," which he marketed as an automated algorithmic trading fund. He privately admitted to an associate that this fund never existed, prosecutors said. Piercey only paid back around $8.8 million of the $35 million he collected from investors, prosecutors said. He used the rest for personal and business expenses, including legal fees and the purchase of two homes. "Many invested their life savings with Matthew Piercey's companies, not knowing that the claim of guaranteed returns were the empty promises of a Ponzi scheme," said FBI Sacramento Special Agent in Charge Sid Patel. Court documents show that, upon learning he was under investigation, Piercey attempted to "dissuade investors and witnesses from responding to grand jury subpoenas," the U.S. Attorney's Office said. At this same time, Piercey moved nearly $775,000 from victim investors into a personal bank account. The FBI had been investigating for more than a year when they moved in to arrest him on November 16, 2020. Piercey led law enforcement officials on a chase before abandoning his pickup truck near Shasta Lake, where he attempted to escape underwater using a Yamaha 350Li submersible device. Piercey was in the lake for around 20 minutes before returning to shore and being placed in handcuffs. In jail, Piercey was found to have used coded language to direct two visitors to take action with items stored in a U-Haul locker he had rented in Redding, prosecutors said. The locker, rented under a fake name with a forged ID, contained a wig and ₣31,000 in Swiss francs, among other items. Those two associates were identified as Ken Winton and Gary Klopfenstein, both of whom have since pleaded guilty to their part in the scheme. Both men are scheduled for status conferences regarding sentencing on August 21. Winton was originally recruited by Piercey to be an investor but eventually took on management responsibilities at Zolla. Piercey, 48, faces up to 20 years in prison for each count and substantial fines. He is scheduled to be sentenced on September 4. "Investment fraud schemes like the one led by this defendant can devastate lives, retirements, and undo decades of planning by hard-working people simply looking for a trusted place to invest their money," Acting U.S. Attorney Michele Beckwith said.
The Independent
09-05-2025
- Politics
- The Independent
Tearful George Santos pleads for a pardon from Trump
Former congressman George Santos, who pleaded guilty to wire fraud and identity theft last year, is hoping President Donald Trump bestows some form of clemency to keep him from serving seven years in federal prison. Last month, a federal judge in New York sentenced Santos to 87 months in prison for his crimes, believing the former congressman had no remorse for the campaign donors and voters he lied to and swindled out of money. On Thursday, Santos appeared teary-eyed and lethargic on Piers Morgan Uncensored to make his plea to the president. 'Previously, I was not entertaining a pardon because I didn't know what my judgment would be. Now, I am in the process of filling an application to a pardon for the president. I'll take a commutation, a clemency, whatever the president is willing to give me,' Santos said. The former congressman, who was ousted by his colleagues following a damning House Ethics Report in December 2023, said he believes the judge's sentence was 'over the top' for a first time offender. Taking a page from Trump's book, he asserted that former attorney general Merrick Garland had been unfair in leading the Justice Department, and the case against him was politically motivated. 'I do believe this is an unfair judgment handed down to me. There was a lot of politicization over the process,' Santos said. The Independent has asked Santos for further comment. Federal prosecutors brought a series of charges against Santos in 2023, alleging he engaged in several schemes to pocket money from political donors and government assistance programs to enrich himself as he sought a seat representing New York's 3rd congressional district. Santos had gone from relative obscurity to an overnight headline-maker in a series of months after reports accused him of fabricating education and work experience on his resume, lying about his mother's whereabouts on September 11, 2001, misrepresenting himself as being Jewish, misleading people about running a dog charity and more. Now, Santos believes his bad actions could be used in the country's benefit to 'sniff out other bad actors.' 'Who better, Piers, and President Trump – I hope he would agree, to be able to sniff out other bad actors doing similar actions that I did. I mean, I understand that I could help, I can be an asset for the country and I want to use that for the good,' Santos said. Last August, Santos pleaded guilty to wire fraud and aggravated identity theft to avoid a federal criminal trial. He also admitted to a series of other wrongdoings, including lying to Congress and fraudulently collecting unemployment benefits. But since pleading guilty, Santos had taken to social media to capitalize on his name recognition and dispute prosecutors' claims. His defiance against federal prosecutors ultimately cemented his harsh punishment. Santos believes it was unnecessarily harsh, tearfully telling Morgan that it would impact his family's routine, force him to miss crucial life events and potentially put him at risk of serious injury. 'President Trump, I'd appreciate if you could give me a consideration. I'm not an altar boy, I'm not pretending to be one. But I'm not a hardened criminal who deserves to be in prison for seven years off of what I would call ambitious mistakes and it's something that I deeply regret,' Santos said.
