Matthew Piercey, $35M Ponzi Scheme, California 2023

Ponzi Scheme Mastermind Arrested After Fleeing into Lake Shasta

Matthew Piercey, 44, of Palo Cedro, California, was arrested on November 12, 2023, after a grand jury returned an indictment charging him with wire fraud, mail fraud, money laundering, and witness tampering.

Piercey allegedly carried out an investment fraud scheme that raised a total of approximately $35 million in investor funds from about July 2015 through August 2020. He used Family Wealth Legacy and Zolla to solicit funds from investors using false and misleading statements, including about trading algorithms, the success of the companies' investment strategies, and the liquidity of investments.

According to court documents, Piercey used some investor money to make payments to other investors in a Ponzi scheme, paying back approximately $8.8 million to investors. He used other investor money for various business and personal expenses, including two residential properties and a houseboat.

Piercey also tampered with multiple witnesses by discouraging them from responding to grand jury subpoenas related to the investigation.

Co-defendant Kenneth Winton, 67, of Oroville, was charged separately by criminal information with conspiracy to commit wire fraud.

If convicted, Piercey faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, for each wire fraud and mail fraud count. Winton faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater.

Piercey is scheduled for his initial appearance and arraignment on November 16, 2023. Winton is scheduled for his initial appearance on November 19, 2023.

Source: https://www.justice.gov/usao-edca/pr/shasta-county-and-butte-county-residents-charged-35m-ponzi-scheme