Matthew James Addy, 47, of Lancaster, Pennsylvania, pleaded guilty on Apr. 9 before United States District Judge John M. Gallagher to multiple counts of wire fraud, bank fraud, and aggravated identity theft related to schemes that defrauded investors out of hundreds of thousands of dollars.
The case is significant because it involved fraudulent activities over several years that resulted in substantial financial losses for the victims. According to United States Attorney David Metcalf, Addy was charged by indictment in October of last year.
Court filings show that from January 2020 to July 2022, Addy presented himself as a wealthy businessman and entrepreneur in order to convince investors and potential investors to provide him with loans and investments. He misrepresented his personal finances and business experience while promoting his consulting company "the Yarah Group," which he falsely claimed was based in Beverly Hills and valued at $200 million.
Addy admitted that he persuaded one victim (referred to as Victim 1) not only to hire him but also to make loans and investments into the Yarah Group. He also applied for loans using Victim 1’s other business without consent or knowledge, providing lenders with identifying information from Victim 1 and listing them as guarantor on the loans. In total, this scheme resulted in losses of approximately $722,496 for Victim 1.
Between April and June 2023, Addy also defrauded a second individual (Victim 2), whom he met socially. He convinced this person that he was a diamond dealer who had made his first million by age thirty. Through his purported company “Yarah Holdings PLC,” Addy induced Victim 2 into making a short-term loan under false pretenses but used the funds for personal expenses instead of their intended purpose.
In another incident involving a federal credit union headquartered in Pennsylvania, Addy deposited an $8,500 check drawn from Company 1’s account into his own account before withdrawing the funds in cash on the same day. The check later bounced due to insufficient funds; when questioned by investigators about the transaction on a recorded call, Addy made false statements regarding its legitimacy.
Sentencing is scheduled for July 28; Addy faces up to 294 years imprisonment along with three years supervised release and restitution totaling $755,995.
