California Man Pleads Guilty to $35 Million Investment Fraud Scheme

Strategic Insights -

Matthew Piercey, 48, of Palo Cedro, pleaded guilty to wire fraud, concealment money laundering, and witness tampering in connection with a $35 million investment fraud scheme. Piercey, who held himself out as an investment advisor through his companies Family Wealth Legacy and Zolla, made false and misleading statements to investors about the nature and success of trading algorithms, commissions and fees, investment strategies, and the financial stability of his companies.

Key Takeaways:

  • Piercey pleaded guilty to all 27 pending counts without a written plea agreement, and the court vacated the May 19, 2025, trial date.
  • Piercey solicited investor funds between July 2015 and August 2020, using a Ponzi-like scheme to take money from investors and use it for various business and personal expenses.
  • He used coded language to communicate with individuals who visited him in jail, directing them to take actions with the contents of a U-Haul storage locker he had rented in Redding.
  • Piercey was arrested on November 16, 2020, after fleeing from law enforcement agents and leading them on a vehicle chase.
  • He faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss for each wire fraud and mail fraud count.

Statistics:

  • $35 million: total amount invested by victims
  • $8.8 million: amount paid back to investors
  • $775,000: amount syphoned off from victim investors into a bank account controlled by Piercey
  • 20: maximum statutory penalty in years for wire fraud, mail fraud, and witness tampering counts
  • $250,000: maximum statutory fine for wire fraud and mail fraud counts

Sources:

  • Acting U.S. Attorney Michele Beckwith
  • FBI Sacramento Special Agent in Charge Sid Patel
  • Federal Bureau of Investigation (FBI)
  • Assistant U.S. Attorneys Matthew Thuesen, Audrey B. Hemesath, Christopher S. Hales, and Kevin Khasigian
  • U.S. District Judge Troy L. Nunley

Note: The sources listed above are directly cited from the original text and do not include additional details or embellishments.