Matthew Piercey, 48, from Palo Cedro, pleaded guilty to charges of wire fraud, money laundering, and witness tampering in connection with a $35 million investment fraud. The charges relate to his companies Family Wealth Legacy and Zolla, and his trial scheduled for May 19, was canceled. Between 2015 and 2020, Piercey promoted himself as an investment advisor and used false statements to attract investors. He misrepresented the performance of his trading algorithms, fees, and financial status, including promoting the "Upvesting Fund," which he admitted did not exist, while continuing to collect investor money, according to the U.S. Attorney's Office.
Piercey operated a Ponzi scheme, using money from new investors to pay earlier investors. He used a local chiropractor’s business to hide the fraud and attract more investors. Out of $35 million collected, about $8.8 million was returned to investors, while the rest was spent on business ventures, personal expenses, legal fees, and property. When he learned of the investigation, Piercey tried to stop investors and witnesses from cooperating with subpoenas, causing delays and diverting nearly $775,000 of victim funds into his control. He attempted to escape arrest by leading police on a chase and diving into Lake Shasta with a submersible device before being captured, as reported by the U.S. Attorney's Office.
Matthew Piercey used coded language in prison to direct visitors about a storage locker containing disguises and foreign currency. He faces up to 20 years in prison and is scheduled for sentencing on September 4, for wire fraud, witness tampering, and money laundering. Accomplices Ken Winton and Gary Klopfenstein, who pleaded guilty, have sentencing status conferences on August 21. Acting U.S. Attorney Beckwith stated, "Our office will continue to work with the FBI and our law enforcement partners to bring to justice those who commit these frauds and who seek to tamper with the grand jury process." FBI Sacramento Special Agent in Charge Sid Patel said, "The FBI agents, forensic accountants, and other specialized personnel work tirelessly to ensure those who exploit the trust of a hopeful public will face serious consequences," as mentioned by the U.S. Attorney's Office.
