GRAND RAPIDS, Mich. – A 39-year-old man from Kent County has been sentenced to more than eight years in federal prison for a $1.6 million investment scam.
According to authorities, Matthew Mencarelli offered phony investments into nonexistent infrastructure projects and used the money to finance his life and pay earlier investors.
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The scheme began in 2018 when his business -- Matthew’s Woodworking LLC -- was facing financial problems. Officials said he approached friends and acquaintances from his family’s yacht and country clubs and told them he had lucrative infrastructure contracts in Traverse City.
Mencarelli reportedly guaranteed high rates of return if investors loaned him money, which he spent on a $400,000 custom-built home. When it came time to pay investors back, authorities said he threatened them and forged documents to maintain the scam.
The courts found he was responsible for causing $1,615,180 in losses to 15 people.
Mencarelli was sentenced Tuesday, Feb. 25, to 97 months in federal prison.
