California Man Admits Guilt in $35 Million Fraud Scheme

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An artist's depiction of a peaceful lake reflecting the seriousness of investment fraud.

News Summary

Matthew Piercey, a 48-year-old man from Shasta County, California, has pleaded guilty to fraud, money laundering, and witness tampering in a $35 million investment fraud case. The scheme, which ran from 2015 to 2020, involved soliciting funds under false pretenses and misappropriating them for personal expenses. Piercey’s arrest included a dramatic underwater escape attempt, and he could face up to 20 years in prison for each count. His sentencing is set for September 4.

California Man Pleads Guilty to $35 Million Investment Fraud Scheme

Matthew Piercey, a 48-year-old man from Shasta County, California, has pleaded guilty to multiple charges including fraud, money laundering, and witness tampering. The charges stem from a significant investment fraud scheme that spanned from 2015 to 2020, with total investor losses amounting to $35 million.

Piercey solicited funds from investors under false pretenses and misappropriated the money for personal and business expenses, which included purchasing two residential properties. Out of the total funds raised, he managed to return approximately $8.8 million to the investors.

Details of Arrest

The case took a dramatic turn in November 2020, when federal agents attempted to arrest Piercey. Leading them on a vehicle chase, he abandoned his car and entered Lake Shasta using a Yamaha 350LI underwater scooter. This motorized device allows for underwater travel at speeds of approximately 4 mph (6.4 kph). While submerged for about 20 minutes, only bubbles were visible indicating his presence underwater. He eventually resurfaced and was arrested by authorities.

According to federal prosecutors, Piercey was considered a “flight risk” due to his attempt to evade arrest. Following his apprehension, he engaged in further criminal activity by attempting to dissuade potential witnesses from complying with grand jury subpoenas.

Additional Evidence and Charges

While in jail, Piercey utilized coded communications to instruct others to dispose of a rented U-Haul storage locker. An FBI search of the locker revealed significant evidence, including a wig and 31,000 Swiss francs (approximately $37,000), further implicating him in his fraudulent activities.

The charges faced by Piercey carry severe penalties. He could face a maximum sentence of 20 years in prison for each count of wire fraud, mail fraud, witness tampering, and money laundering. His sentencing is scheduled for September 4.

Background on the Fraud Scheme

Between 2015 and 2020, Piercey was able to attract investors through false claims and misleading information about investment opportunities. As he collected the funds, he diverted a significant portion of it to personal use rather than the promised investments, resulting in substantial losses for many individuals who placed their trust in his schemes. The case highlights the importance of caution and diligence in financial investments, particularly in cases where extraordinary claims may appear too good to be true.

Piercey’s actions and subsequent attempts to evade law enforcement underscore the complexities involved in investment fraud schemes and the lengths to which some individuals will go to conceal their wrongdoing.