Busted! Crypto Ponzi Schemer Apprehended after 'Sea Scooter' Escape Attempt

A man accused of operating two cryptocurrency mining-related Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term firms has reportedly been apprehended by FBI agents after a failed attempt to escape on a 'sea scooter'. 44-year-old Matthew Piercey is up against multiple charges that include wire fraud, mail fraud, money laundering and witness-tampering.

The Sacramento Bee reported that Piercey operated two fraudulent investment firms, Family Wealth Legacy LLC and Zolla Financial LLC, that solicited an estimated $35 million from unsuspecting investors since 2015. Pierce’s firms reportedly targeted wealthy investors: minimum investments for both firms sat at $50,000.

The funds were allegedly being invested in cryptocurrency mining, life insurance, and other assets.

However, the scheme began to crack when Piercey allegedly told one of his associates that one of the firms’ so-called “Upvesting Fund” did not exist.’

Furthermore, it was later revealed that Piercey seems to have little understanding of what Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term are; according to CoinTelegraph, Joshua Cons, a lawyer representing clients of Family Wealth Legacy, said that: “I don’t know they knew what they were doing with the crypto.”

A Low-Speed Underwater Chase

When authorities eventually caught wind of the alleged funny business being conducted by Mr. Piercey, they attempted to confront Mr. Piercey at his home in Redding, California.

However, Piercey managed to evade them for more than an hour, first, in his truck, and then on a so-called 'sea scooter', a water-propelled device that helps divers move underwater at eye-poppingly high speeds of up to four miles per hour.

However, after about 25 minutes underwater in Lake Shasta, Mr. Piercey was arrested when he re-surfaced.

It is believed that Piercey spent roughly $2.5 million on home renovations and paying off credit card bills. Kenneth Winton, a man believed to be Piercey’s accomplice, is also believed to have used $1 million of the funds to purchase a houseboat for himself.

$8.8 million of the funds raised were allegedly provided to previous investors to create the illusion that the funds were generating profits. However, prosecutors say that "of the remaining net investment of approximately $26 million, few if any liquid assets remain to repay investors." Prosecutors also say that if found guilty, Piercey could face a life sentence in prison.

Ponzi schemes are an unfortunately popular feature of the crypto landscape. Perhaps the most famous is OneCoin scheme, in which a woman named Ruja Ignatova made off with more than $4 billion in unsuspecting investors' funds.