Matthew Piercey, a 48-year-old resident of Palo Cedro, has pleaded guilty to charges related to a $35 million investment fraud scheme. The charges include wire fraud, concealment money laundering, and witness tampering. Acting U.S. Attorney Michele Beckwith confirmed that Piercey admitted guilt to all 27 counts without a written plea agreement, leading to the cancellation of his trial initially set for May 19, 2025.
Court documents reveal that from July 2015 to August 2020, Piercey posed as an investment advisor through his companies Family Wealth Legacy and Zolla. He allegedly misled investors about trading algorithms and other financial details. One such deception involved promoting the "Upvesting Fund," which he falsely claimed was successful but privately acknowledged did not exist.
Piercey's operation resembled a Ponzi scheme where funds from new investors were used to pay earlier ones. He also enlisted a local chiropractor to help disguise his fraudulent activities and attract more investments.
Of the approximately $35 million raised from investors, only about $8.8 million was returned. The rest funded personal expenses like legal fees and real estate purchases. When aware of an investigation against him, Piercey reportedly attempted to prevent witnesses from cooperating with authorities while transferring nearly $775,000 into his account.
On November 16, 2020, when law enforcement sought his arrest, Piercey fled in a vehicle before using an underwater device in Lake Shasta during the pursuit. He was apprehended after resurfacing from the lake.
While detained, Piercey communicated in code with visitors instructing them regarding items in a rented storage locker under a false identity. An FBI search revealed various items including Swiss francs and a wig.
“Investment fraud schemes like the one led by this defendant can devastate lives,” stated Acting U.S. Attorney Beckwith. “Our office will continue to work with the FBI...to bring to justice those who commit these frauds.”
FBI Sacramento Special Agent Sid Patel noted: “Many invested their life savings...not knowing that the claim of guaranteed returns were...a Ponzi scheme.”
The case stems from an FBI investigation with Assistant U.S. Attorneys Matthew Thuesen, Audrey B. Hemesath, Christopher S. Hales, and Kevin Khasigian prosecuting.
Piercey's sentencing is scheduled for September 4, 2025 by Judge Troy L. Nunley. Co-defendants Ken Winton and Gary Klopfenstein have also pleaded guilty and await sentencing status conferences on August 21, 2025.
Piercey faces potential penalties including up to 20 years imprisonment per count of wire fraud or mail fraud along with significant fines subject to court discretion based on federal guidelines.