(ChurchLeaders) An attendee of Bethel Church in Redding, California has been arrested for concocting a “ponzi scheme” which swindled investors out of $35 million. Some of the investors were also members of Bethel Church.
Matthew Piercey set up the investment companies Family Wealth Legacy and Zolla to allegedly entice investors to give him and his business partner, Kenneth Winton, money. Piercey is being charged with wire fraud, mail fraud, money laundering, and witness tampering. Winton is charged with conspiracy to commit wire fraud.
“Piercey and Winton used some investor money to make payments to other investors in a ‘Ponzi scheme,’” a statement released by the Department of Justice reads. “In total, they paid back approximately $8.8 million to investors. They used other investor money for various business and personal expenses, including two residential properties and a houseboat. Few, if any, liquid assets remain to repay investors.”