Authorities say a Shasta County man, who is believed to have organized a $35 million fraud scheme, tried to escape from FBI agents by hiding under water at Shasta Lake. Matthew Piercey, 44, is alleged to have led the agents on a vehicle chase through residential neighborhoods and onto a highway before eventually ditching his truck and diving into the cold water of the lake. Piercey used a recreational submersible device called a "sea scooter" to stay below the surface, the Sacramento Bee reported. He was arrested after he emerged from the lake some 30 minutes later.
Last Wednesday, a grand jury indicted Piercey, charging him with wire fraud, mail fraud, money laundering, and witness tampering. His business partner, Kenneth Winton, 67, from Oroville, was charged separately by criminal information with conspiracy to commit wire fraud.
According to court documents, Piercey was involved in a bogus investment scheme that pulled in millions of dollars from investors over a five year period ending in August of this year. Piercey is accused of soliciting funds using a variety of false and misleading statements. Piercey is said to have recruited Winton as an investor, but that the pair later conspired to mislead investors.
Piercey and Winton used some investor money to make payments to other investors in a "Ponzi scheme," according to the U.S. Attorney's office in Sacramento. They allegedly used other investor money for various business and personal expenses, including two residential properties and a houseboat.
According to court documents, Piercey also attempted to discourage multiple witnesses from responding to grand jury subpoenas related to the investigation.
If convicted, Piercey is facing a maximum sentence of 20 years in prison. Winton is also looking at the possibility of 20 years in prison, both men could be fined hundreds of thousands of dollars.