Mark A. Totten United States Attorney | U.S. Attorney for the Western District of Michigan
Matthew Mencarelli, a 39-year-old contractor from Belmont, Michigan, has been sentenced to over eight years 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 was found guilty of offering fraudulent investments in nonexistent fiber optic cable and infrastructure projects. He misappropriated the funds to support his lifestyle and made Ponzi-type payments to previous investors.
U.S. District Judge Hala Y. Jarbou determined that Mencarelli's actions resulted in a loss of $1,615,180 affecting 15 victims. "Those who steal from others to line their own pockets will be held accountable," Birge stated, emphasizing the commitment to combat financial fraud and white-collar crime.
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 acknowledged the collaboration with the Grand Rapids Police Department and the U.S. Attorney’s Office of the Western District of Michigan in bringing Mencarelli to justice.
According to court records, Mencarelli owned a contracting business called Matthew’s Woodworking LLC. In 2018, facing financial difficulties and unsatisfied customers, he began soliciting fake investments by claiming lucrative contracts with local governments for installing fiber optic cables or other infrastructure projects. He convinced friends and acquaintances from his family’s yacht club and county club to invest by promising high returns linked to maintaining a surety bond for these supposed contracts.
In reality, no such contracts existed; instead, Mencarelli used at least $400,000 from these investments on personal expenses like building a custom home. When it came time to repay investors, he resorted to deception by lying, bullying them into silence, threatening them, and creating false documents.
The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Clay Stiffler.
