Source: Office of United States Attorneys
LANSING – Acting U.S. Attorney for the Western District of Michigan Andrew Birge announced today that Matthew Mencarelli, 39, of Belmont, Michigan was sentenced to 97 months in prison for a wire fraud scheme in which he offered phony investments in nonexistent “fiber optic cable” and other infrastructure projects. He used the money to finance his lifestyle and make Ponzi-type payments to earlier investors. U.S. District Judge Hala Y. Jarbou, who imposed the sentence, found Mencarelli responsible for causing $1,615,180 in loss to 15 victims of the scheme.
“Those who steal from others to line their own pockets will be held accountable,” Birge said. “We are committed to combatting financial fraud and white-collar crime and would like to thank the victims who came forward to report it.”
“Today’s sentencing of Matthew Mencarelli sends a stern message that fraudulent investment schemes will not be tolerated in Michigan,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI remains committed to investigating and deterring financial fraud that harms our community. We appreciate the Grand Rapids Police Department for their invaluable partnership and the U.S. Attorney’s Office of the Western District of Michigan in bringing Mr. Mencarelli to justice.”
Court records indicate that Mencarelli, who owned a contracting business called Matthew’s Woodworking LLC, began soliciting fictitious investments in 2018 when his business was suffering from financial difficulties and unsatisfied customers. He approached friends and acquaintances from his family’s yacht club and county club and told them he had lucrative contracts with local governments in Traverse City to install fiber optic cable or other infrastructure projects. He told them he needed money to maintain a “surety bond” in connection with the contracts and guaranteed high rates of return if the investors loaned him money. In truth, there were no such contracts and Mencarelli used the money instead to finance his lifestyle, pouring at least $400,000 into a custom-built home. He also used payments from newer investors to pay off older investors. When it came time to pay investors back, he lied, bullied, and threatened them and manufactured false documents to maintain the charade.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.
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