News Summary
Matthew Piercey, a resident of Shasta County, has pleaded guilty to multiple charges including fraud and money laundering linked to a $35 million investment fraud scheme. From 2015 to 2020, he misappropriated investor funds for personal expenses while trying to evade arrest in a dramatic lake chase. With a potential sentence of 20 years per charge, his case highlights severe implications of financial fraud and the lengths taken to avoid justice.
California – Matthew Piercey, a 48-year-old resident of Shasta County, has pleaded guilty to multiple charges stemming from a $35 million investment fraud scheme that occurred from 2015 to 2020. The charges against him include fraud, money laundering, and witness tampering, revealing a wide-ranging effort to defraud investors and conceal his actions.
Piercey solicited funds from investors, ultimately raising $35 million. However, he misappropriated much of this money for personal and business expenses, including the purchase of two residential properties. He did manage to return approximately $8.8 million to investors, indicating that the fraud affected numerous individuals seeking financial returns.
The legal troubles for Piercey escalated in November 2020 when federal agents attempted to arrest him. As law enforcement closed in, Piercey led them on a car chase that ended at Lake Shasta, where he abandoned his vehicle. Displaying a remarkable attempt to evade capture, he jumped into the lake armed with a Yamaha 350LI underwater scooter. This device is designed for underwater travel, allowing speeds of around 4 mph (6.4 kph). For approximately 20 minutes, Piercey managed to stay submerged, only surfacing later for his eventual arrest.
Federal prosecutors have labeled Piercey as a “flight risk,” highlighting his effort to escape law enforcement by spending time underwater, surfacing briefly obscured only by a stream of bubbles. After his apprehension, Piercey’s legal issues compounded when he was found to have attempted to influence witnesses related to the grand jury investigation. Reports indicate that while incarcerated, he communicated in code to instruct others to dispose of a rented U-Haul storage locker.
An FBI search of this storage locker unveiled a wig and 31,000 Swiss francs, approximately equivalent to $37,000. These items and the circumstances surrounding their storage raised concerns about further attempts to obscure his fraudulent activities.
Piercey’s case underscores significant issues regarding financial fraud and the lengths to which individuals may go to perpetuate such schemes. He now faces severe consequences, with a potential maximum sentence of 20 years in prison for each count of wire fraud, mail fraud, witness tampering, and money laundering. The severity of the charges reflects the substantial impact of his actions on victims and the legal system.
Sentencing for Matthew Piercey is scheduled for September 4, where he may learn the extent of the penalties he faces for his extensive fraud and subsequent attempts to evade justice.
Deeper Dive: News & Info About This Topic
- Fortune: California Arrest for $35 Million Investment Fraud
- Reuters: California Woman Charged with Litigation Funding Fraud
- Bleeping Computer: California Man Sentenced for $50 Million Scam
- Wikipedia: Fraud
- Encyclopedia Britannica: Scam
