Matthew Mencarelli, a 39-year-old resident of Belmont, Michigan, has been sentenced to 97 months in prison for his involvement in a wire fraud scheme. Acting U.S. Attorney for the Western District of Michigan Andrew Birge announced that Mencarelli offered fraudulent investments in non-existent "fiber optic cable" and other infrastructure projects. The funds were used to support his lifestyle and make Ponzi-type payments to earlier investors. U.S. District Judge Hala Y. Jarbou determined that Mencarelli caused a loss of $1,615,180 to 15 victims.
“Those who steal from others to line their own pockets will be held accountable,” stated Birge. “We are committed to combatting financial fraud and white-collar crime and would like to thank the victims who came forward to report it.”
Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan, commented on the sentencing: “Today’s sentencing of Matthew Mencarelli sends a stern message that fraudulent investment schemes will not be tolerated in Michigan.” He added appreciation for the Grand Rapids Police Department's partnership and acknowledged the role of the U.S. Attorney’s Office in bringing Mencarelli to justice.
Court records reveal that Mencarelli owned a contracting business named Matthew’s Woodworking LLC and began soliciting fictitious investments in 2018 due to financial difficulties within his business. He targeted friends and acquaintances from his family’s yacht club and country club with claims of lucrative contracts with local governments in Traverse City for fiber optic cable installation or other infrastructure projects. He falsely claimed he needed funds for a "surety bond" related to these contracts and promised high returns on loans from investors.
In reality, no such contracts existed, and Mencarelli diverted at least $400,000 into building a custom home while using newer investor payments to repay older ones. When required to return investor funds, he resorted to deceitful tactics including threats and fabricating documents.
The Federal Bureau of Investigation conducted the investigation leading up to this case which was prosecuted by Assistant U.S. Attorney Clay Stiffler.