Michele Beckwith Acting U.S. Attorney | U.S. Attorney for the Eastern District of California
Matthew Piercey, a 48-year-old resident of Palo Cedro, has admitted guilt to charges including wire fraud, concealment money laundering, and witness tampering in connection with a $35 million investment fraud scheme. Acting U.S. Attorney Michele Beckwith confirmed the guilty plea, noting that Piercey did so without a written plea agreement, resulting in the cancellation of his upcoming trial scheduled for May 19, 2025.
Court documents reveal that between July 2015 and August 2020, Piercey posed as an investment advisor through his companies Family Wealth Legacy and Zolla. He misled investors with false claims about trading algorithms and investment strategies. A notable example was the "Upvesting Fund," which he falsely promoted as successful despite admitting privately that it did not exist.
Piercey's operation resembled a Ponzi scheme where he used new investor funds to pay returns to earlier investors. He involved a chiropractor from Redding to obscure the fraudulent activities while continuing to solicit investments. Out of approximately $35 million invested, only around $8.8 million was returned to investors. The remaining funds were used for personal expenses and business costs.
Upon learning about the investigation against him, Piercey attempted to deter witnesses from complying with grand jury subpoenas while diverting nearly $775,000 into an account under his control.
Piercey's arrest on November 16, 2020, followed a vehicle chase and an escape attempt using an underwater submersible device at Lake Shasta. Post-arrest investigations uncovered that he communicated in coded language with jail visitors regarding actions involving a storage locker rented under a fake identity. This locker contained various items including ₣31,000 in Swiss francs.
“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 and our law enforcement partners to bring to justice those who commit these frauds.”
FBI Sacramento Special Agent Sid Patel remarked on the trust exploited by Piercey’s promises: “Many invested their life savings with Matthew Piercey’s companies... The FBI agents... ensure those who exploit the trust of a hopeful public will face serious consequences.”
The case is being prosecuted by Assistant U.S. Attorneys Matthew Thuesen, Audrey B. Hemesath, Christopher S. Hales, and Kevin Khasigian following an investigation by the Federal Bureau of Investigation.
Piercey's sentencing is set for September 4, 2025, before U.S. District Judge Troy L. Nunley. Two co-conspirators in the scheme are Ken Winton and Gary Klopfenstein; both have pleaded guilty and await further proceedings regarding their sentences on August 21, 2025.
Piercey faces potential penalties including up to 20 years in prison per count of wire fraud and mail fraud or witness tampering and fines reaching up to $500,000 per money laundering count or twice the value involved.
