A Lufkin resident has been sentenced to more than eight years in federal prison for his role in a large-scale fraud scheme, according to an announcement from U.S. Attorney Jay R. Combs.
Matthew Jess Thrash, 50, pleaded guilty to two counts of wire fraud and received a sentence of 97 months from U.S. District Judge Marcia A. Crone on January 6, 2026. He was also ordered to pay $8,100,024 in restitution.
Court documents revealed that the investigation began in December 2020 after law enforcement received a report of suspected fraud. Authorities determined that Thrash had collected over $9 million from more than 100 victims through various fraudulent activities. These included sports-related investment schemes, a Las Vegas cannabis store scheme, and obtaining loans under false pretenses.
Thrash also secured funds by applying for COVID-19 relief loans he was not eligible for, including a Paycheck Protection Program (PPP) loan. The PPP is a program run by the Small Business Administration that provides forgivable loans to qualifying businesses. Instead of using the money as intended, Thrash spent it on gambling, personal expenses, and repaying other victims to avoid detection.
The FBI’s Lufkin Field Office led the investigation with assistance from the Texas Department of Public Safety in Lufkin and the Lufkin Police Department. Assistant U.S. Attorney Lauren Gaston prosecuted the case.
"This case was investigated by FBI’s Lufkin Field Office, the Texas Department of Public Safety in Lufkin, and the Lufkin Police Department. This case is being prosecuted by Assistant U.S. Attorney Lauren Gaston."
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