US arrests organizer of $35m Ponzi scheme

The defendant in organizing a large Ponzi scheme, founder of Family Wealth Legacy and Zolla, Matthew Pirsi, was detained by FBI agents, говорится in a press release from the U.S. Department of Justice.

The arrest was made in California after Pirsi attempted to flee from law enforcement. For about an hour, FBI agents pursued the suspect, but he slipped into a specialized underwater towcraft on Lake Shasta. He was detained after emerging on the shore.

The United States Attorney’s Office for the Southern District of California charged Pirsi with fraud, money laundering and making false statements.

According to investigators, he organized a Ponzi scheme that attracted about $35 million. The companies raised these funds through ‘investment products’, including cryptocurrency mining.

“Pirsi used Family Wealth Legacy and Zolla to attract funds, using various false and misleading statements, including about trading algorithms, the success of the companies’ investment strategies, and the liquidity of investments,” the statement said.

According to authorities, Pirsi’s funds were spent on personal expenses: at least $2.5 million he used for renovating two houses and paying credit card bills. His accomplice Kenneth Winton allegedly bought a $1 million houseboat.

If Pirsi is convicted on each of the charges, he faces up to 20 years in prison and total fines of $1 million. Winton could face up to 20 years in prison.

Earlier in November, a U.S. court sentenced former Microsoft employee Vladimir Kvashuk to nine years in prison for theft, money laundering and tax fraud involving Bitcoin.

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