Matthew Mencarelli, a 39-year-old contractor from the Rockford area, was sentenced to nearly 8 years in prison for his role in a fraudulent investment scheme that caused over $1.6 million in losses. Mencarelli, the owner of a contracting business, convinced members of his family’s yacht club and country club to invest in fake infrastructure projects, including fiber optic cable installations and other civil works that he falsely claimed were contracted with local governments, according to the U.S. Attorney's Office.
As detailed by the U.S. Attorney's Office, Mencarelli started his scheme in 2018 during financial struggles with his business, Matthew's Woodworking LLC. He used personal relationships to gain trust and secure investments, which he then used to fund his lavish lifestyle and make the business appear profitable. He paid earlier investors with money from new ones, following a Ponzi scheme model. Mencarelli also presented forged documents and made threats when confronted.
Matthew Mencarelli was sentenced to 97 months in prison for causing financial harm to 15 victims through a fraudulent investment scheme. U.S. District Judge Hala Y. Jarbou ruled based on the evidence presented. U.S. Attorney Birge stated, "Those who steal from others to line their own pockets will be held accountable." FBI Special Agent in Charge Cheyvoryea Gibson said, "Today’s sentencing of Matthew Mencarelli sends a stern message that fraudulent investment schemes will not be tolerated in Michigan." The FBI, Grand Rapids Police Department, and the U.S. Attorney’s Office worked together to investigate and prosecute the case.
