Matthew Piercey, a 48-year-old California man, pleaded guilty to a series of charges, including wire fraud, money laundering, and witness tampering, after orchestrating a massive $35 million Ponzi scheme that spanned five years. The scheme, which lasted from 2015 to 2020, saw Piercey solicit investor funds under false pretenses, using the money for personal and business expenses, including the purchase of residential properties and payments for a criminal defense firm.
The Scheme
Between July 2015 and August 2020, Piercey ran his fraudulent operation, convincing investors to hand over their life savings by promising guaranteed returns. However, instead of using the funds for legitimate investments, Piercey misappropriated the money for personal use, including expensive assets, contributing to the massive scale of the Ponzi scheme.
As the scheme unraveled, the FBI began investigating Piercey. They identified him as a central figure in defrauding dozens of investors. By the time the investigation concluded, Piercey had already stolen millions of dollars.
Fleeing Authorities in a Daring Underwater Escape
The investigation into Piercey came to a head in November 2020 when FBI agents moved to arrest him. Rather than surrendering, Piercey attempted to flee in a dramatic fashion. After leading agents on a high-speed chase through residential streets and onto the highway, Piercey abandoned his vehicle and entered a nearby lake with a Yamaha 350LI underwater submersible device—an underwater scooter used by divers.
The FBI agents were unable to spot Piercey immediately, as he spent approximately 20 minutes submerged, with only bubbles visible on the surface. Eventually, Piercey resurfaced and was arrested. His escape attempt was one of the more bizarre episodes in recent criminal history.
Attempted Obstruction of Justice
After his arrest, Piercey continued to attempt to obstruct justice. While in jail, he communicated with two associates using coded language, instructing them to “take actions” with items stored in his U-Haul storage locker. An FBI search of the locker turned up a wig and approximately $37,000 in Swiss francs.
This obstruction of justice charge further added to the severity of Piercey’s case. The FBI’s investigation revealed that Piercey was willing to go to great lengths to conceal evidence and escape the consequences of his actions.
Consequences and Sentencing
Piercey has since paid back $8.8 million of the $35 million he defrauded from his victims. Despite this partial repayment, the full extent of the damage caused by his Ponzi scheme is substantial, as many investors lost their life savings.
As a result of his actions, Piercey faces serious legal consequences. He is scheduled to be sentenced on September 4, 2025, and is facing a maximum penalty of 20 years in prison. Additionally, he may be fined up to $250,000 or twice the gross gain or loss for each wire fraud and mail fraud charge. Given the scale of the fraud and his attempts to flee and obstruct justice, it’s likely that Piercey will face significant time behind bars.
A Cautionary Tale
Matthew Piercey’s case serves as a reminder of the dangers of Ponzi schemes and the lengths to which some individuals will go to evade justice. His fraudulent activities have left many victims in financial ruin, while his dramatic underwater escape only added to the notoriety of his crimes.
The case also highlights the persistence of law enforcement agencies like the FBI, which continue to investigate, apprehend, and bring to justice those who defraud the public. Despite Piercey’s attempts to escape, the FBI’s commitment to uncovering the truth and ensuring accountability has resulted in his eventual capture and conviction.
As sentencing approaches, it’s clear that Piercey’s actions will not go unpunished. His case will likely stand as an example of the consequences of white-collar crime and the lengths to which authorities will go to hold criminals accountable.
