BELMONT, Mich. (CBS12) — Matthew Mencarelli, 39, from Belmont, Michigan, has been sentenced to 97 months in federal prison for running a wire fraud scheme that defrauded 15 victims out of $1,615,180. The U.S. Attorney’s Office for the Western District of Michigan made the announcement today.
Mencarelli, the owner of Matthew’s Woodworking LLC, began soliciting fictitious investments in 2018 when his business was facing financial troubles. He targeted friends and acquaintances from his family’s yacht and country clubs, falsely claiming he had lucrative contracts with local governments in Traverse City to install fiber optic cables and other infrastructure projects.
Mencarelli promised investors high returns on their money, stating he needed funds to maintain a “surety bond” for these non-existent contracts. In reality, no such contracts existed, and Mencarelli used the money to fund his personal lifestyle, including pouring over $400,000 into a custom-built home. He also used money from newer investors to pay off older ones, creating a Ponzi-like scheme.
When it came time to repay investors, Mencarelli resorted to deception, threats, and fake documents to continue his fraud. His actions resulted in significant financial losses for those who trusted him.
“Those who steal from others to line their own pockets will be held accountable,” said acting U.S. Attorney for the Western District of Michigan, Andrew Birge. “We are committed to combating financial fraud and white-collar crime and thank the victims who came forward to report it.”
Mencarelli’s 97-month sentence serves as a reminder of the severe consequences of financial fraud.
