SHASTA LAKE, Calif. — On Thursday, a resident of Northern California confessed to orchestrating a fraudulent Ponzi-like scheme and was previously captured in 2020 after attempting an underwater getaway from the FBI in Shasta Lake, according to officials.
Matthew Piercey, aged 48 and hailing from Palo Cedro, accepted charges of wire fraud, money laundering, and witness tampering tied to a $35 million fraudulent investment operation that spanned from July 2015 to August 2020, as reported by the U.S. Attorney’s Office for the Eastern District of California.
Piercey’s deceit involved enticing investors through misleading promises made under the names of two investment firms, Family Wealth Legacy and Zolla. He misled them with claims of an “Upvesting Fund,” which he falsely portrayed as an effective “automated algorithmic trading fund,” the attorney’s office disclosed.
Funds from investors were misappropriated by Piercey to repay other investors, while he masked his activities and finances through a chiropractic office in Redding. The scheme accumulated $35 million, of which he returned only $8.8 million, spending the remainder on personal luxuries and operational costs, including two homes and legal fees.
Special Agent in Charge of FBI Sacramento, Sid Patel, noted that some individuals had invested their “life savings” into Piercey’s fraudulent ventures.
Acknowledging the investigation against him, Piercey attempted to dissuade both investors and witnesses from testifying, thereby delaying court proceedings. He illicitly diverted $775,000 from investor funds into his personal bank account.
On November 16, 2020, authorities sought to arrest Piercey, who led them on a vehicular pursuit through nearby streets and a highway. He then abandoned his car and attempted to evade capture by using an “underwater submersible device” to hide in Shasta Lake for approximately 20 minutes before being apprehended.
While detained, Piercey communicated in a coded manner with visitors, instructing them to access a U-Haul storage unit in Redding that he had rented under a false identity. Upon searching the locker, FBI agents discovered a wig and 31,000 Swiss francs, roughly equivalent to $37,000.
Piercey’s sentencing is set for September 4, where he could face a prison term of up to 20 years for each fraud charge, along with fines totaling at least $1 million.
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