Man scams investors out of $1.6 million, builds himself a home in Michigan, feds say
A Michigan man was sentenced to prison after officials say he scammed investors out of $1.6 million by lying about fake government contracts.
Matthew Mencarelli, 39, was sentenced to eight years in prison after pleading guilty to fraud by wire, radio or television, according to court records.
McClatchy News reached out to Mencarelli’s attorney for comment but did not immediately hear back.
In 2018, Mencarelli’s business was “suffering from financial difficulties and unsatisfied customers,” according to a Feb. 25 news release from the U.S. Attorney’s Office for the Western District of Michigan.
In an attempt to find investors to loan him money, authorities said Mencarelli reached out to friends and acquaintances from his family’s yacht club and country club. He told them “he needed money to maintain a ‘surety bond’ in connection with the contracts and guaranteed high rates of return,” prosecutors said.
However, prosecutors said there were no contracts.
In total, he stole $1,615,180 from 15 victims, officials said.
Mencarelli then used the money to pay off other victims, finance his personal lifestyle and used $400,000 of the money toward a custom-built home, officials said.
“When it came time to pay investors back, he lied, bullied, and threatened them and manufactured false documents to maintain the charade,” prosecutors said.
In addition to the prison term, Mencarelli was ordered to pay back $747,430, according to court records.
This story was originally published February 27, 2025 at 12:44 PM with the headline "Man scams investors out of $1.6 million, builds himself a home in Michigan, feds say."
