California Man Pleads Guilty in $35 Million Fraud Scheme

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A courtroom involved in a high-profile investment fraud case

News Summary

Matthew Piercey, a 48-year-old from Shasta County, pleaded guilty to charges related to a $35 million investment fraud scheme between 2015 and 2020. Despite raising significant funds from investors, only $8.8 million was returned. His dramatic attempts to evade law enforcement included a car chase and an underwater escape. Currently in custody, he faces a maximum of 20 years in prison for multiple charges as the case highlights the serious ramifications of fraudulent activities.

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 unfolded between 2015 and 2020. The charges include fraud, money laundering, and witness tampering, highlighting a complex web of deceit that diverted significant funds from investors for personal and business use.

Piercey solicited funds from investors, misusing the bulk of the $35 million raised, only returning approximately $8.8 million to them. His fraudulent activities involved substantial misuse of the raised capital, with expenditures reportedly including the purchase of two residential properties.

His fraudulent scheme began to unravel in November 2020 when federal agents attempted to apprehend him. In a dramatic turn of events, Piercey led authorities on a car chase before abandoning his vehicle and escaping into Lake Shasta. He employed a Yamaha 350LI underwater scooter to flee, submerging himself where only bubbles were visible to onlookers.

After nearly 20 minutes submerged in the water, Piercey resurfaced and was arrested by law enforcement. Federal prosecutors noted the escape attempt characterized him as a significant flight risk. The underwater scooter, purchased for this incident, is capable of transporting users at speeds of approximately 4 mph (or 6.4 kph) underwater.

Post-arrest investigations revealed ongoing attempts by Piercey to tamper with witnesses. While in custody, he tried to dissuade individuals from responding to subpoenas issued by a grand jury. These clandestine communications reportedly instructed others to dispose of a rented U-Haul storage locker linked to his scheme.

An FBI raid on the locker uncovered crucial evidence, including a wig, which could suggest attempts to disguise his identity, along with an impressive 31,000 Swiss francs (equivalent to around $37,000). These findings further implicated Piercey in actions aimed at evading law enforcement and protecting his ill-gotten funds.

Piercey faces substantial penalties as he awaits sentencing, scheduled for September 4. He could face a maximum of 20 years in prison for each of the counts of wire fraud, mail fraud, witness tampering, and money laundering. The court proceedings have captured attention due to the scale of the fraud and the dramatic nature of his attempted escape.

The events unfolded against a backdrop of increasing scrutiny towards fraudulent investment schemes in California and beyond, where law enforcement agencies are ramping up efforts to crack down on financial crimes. This high-profile case emphasizes the serious ramifications of fraudulent activities and the lengths individuals may go to evade justice.

Piercey’s case illustrates not just the financial damage inflicted on investors but also the lengths to which individuals will go to maintain their schemes, including physical escapes and witness intimidation. As the legal process continues, more information about the extent of the fraud and its impacts on the victims may emerge.