An Angelina County man has been sentenced to a little over 8 years in federal prison for conducting a fraud scheme that bilked investors out of $9 million, according to an announcement from U.S. Attorney Jay R. Combs. Matthew Jess Thrash, a 50-year-old Lufkin resident, was given 97 months behind bars after pleading guilty to two counts of wire fraud, in addition to being ordered to pay $8,100,024 in restitution.
The sentence was handed down on January 6, 2026, by U.S. District Judge Marcia A. Crone, after a joint investigation involving the FBI's Lufkin Field Office, the Texas Department of Public Safety, and the Lufkin Police Department, which began when law enforcement became aware of the suspected fraudulent activity in December 2020. Thrash managed to deceive over 100 victims, convincing them to part with their money through a range of fraudulent activities, including sports-related investment schemes, a sham Las Vegas cannabis store, and unauthorized loans, according to the U.S. Attorney's Office.
Furthermore, Thrash unlawfully secured money through COVID relief programs he wasn't eligible for, including a Paycheck Protection Program (PPP) loan, which was meant to help small businesses keep their workforce employed during the pandemic. Instead of using the funds for their intended purposes, Thrash gambled away the money, covered personal expenses, and repaid other victims to prevent detection of his schemes.
The prosecution was led by Assistant U.S. Attorney Lauren Gaston, who highlighted the extent of Thrash's deceit. "Thrash did not invest or use the fraudulently obtained funds for the intended purposes," Gaston stated, pointing to the misuse of PPP loans as an especially egregious element of his crimes, considering the intent of those funds to serve as a lifeline for struggling businesses during a global crisis. This case serves as a testament to the multi-agency cooperation and diligent investigative work that led to the justice of Thrash's criminal activities, as mentioned on the U.S. Attorney's Office website.
