KC Man, Matthew R. Peterson Sentenced for $6 Million Ponzi Scheme
Also Stole $16,000 from Church in Travel Fraud Scheme
KANSAS CITY, MO (STL.News) A Kansas City, Missouri, man was sentenced in federal court today for engaging in a $6 million Ponzi scheme that defrauded dozens of victim investors.
Matthew R. Peterson, 51, was sentenced by U.S. District Judge Howard F. Sachs to eight years and one month in federal prison without parole. The court also ordered Peterson to pay $2,516,010 in restitution to his victims.
On Sept. 10, 2020, Peterson pleaded guilty to one count of bank fraud and one count of money laundering.
Sports Wagering Investment Fraud
Peterson admitted that he operated an investment fraud scheme from 2012 to November 2016. During this scheme, Peterson persuaded at least 37 victims to invest approximately $6 million into sporting wagers.
Peterson lied to prospective investors about being an expert in sports betting in order to carry out his investment fraud scheme. Peterson created fictitious spreadsheets, financial statements and betting reports that indicated the investments were yielding large returns. Peterson, for the most part, did not invest funds on behalf of the investors.