​Man Hid From Cops Underwater With Submersible; Pleads Guilty In $35M Scheme

SHASTA COUNTY, CA — A Northern California man who ran a $35 million investment fraud scheme attempted to hide from arresting authorities below the surface of Lake Shasta using a submersible and was later found to have a storage locker containing tens of thousands of Swiss francs and a wig, authorities said.

Matthew Piercey, 48, of Palo Cedro, pleaded guilty Thursday to 27 counts including wire fraud, concealment money laundering and witness tampering, according to the U.S. Department of Justice.

From 2015 to 2020, he solicited investments, making false and misleading statements, such as taking money for a fund that did not exist, authorities said. He paid back about $8.8 million of the roughly $35 million invested, using the remaining money for business and personal expenses including a criminal defense firm and two homes, according to the department. He also discouraged investors and witnesses from responding to subpoenas, authorities said.

When agents tried to arrest Piercey on Nov. 16, 2020, he fled, leading them on a vehicle chase and eventually entering the lake using a submersible, according to the department. When he emerged 20 minutes later, he was arrested, authorities said.

From behind bars, he instructed his visitors regarding the contents of a U-Haul storage locker he had rented in Redding under the name Chadwick Givens, which contained ₣31,000 in Swiss francs and a wig, according to the department.

Piercey is set to be sentenced on Sept. 4 and faces up to 20 years in prison for each count, as well as fines of up to $250,000 to $500,000 per count or more, authorities said.

His conspirators, Ken Winton and Gary Klopfenstein, have previously pleaded guilty to charges in connection with the scheme, according to the department.