A man from Lufkin, Texas, is facing serious prison time after pleading guilty to wire fraud. According to the U.S. Attorney’s Office, Matthew Jess Thrash, aged 49, admitted to running multiple fraud schemes that cheated more than 100 people out of a total of $9.17 million.
The case has been under investigation since 2020, and the details show a complex web of lies, fake investments, and misuse of federal relief funds meant for businesses during the COVID-19 pandemic.
How the Fraud Happened
Thrash operated several fraudulent schemes, including:
- Fake sports-related investment opportunities
- A false Las Vegas cannabis business deal
- Taking personal loans from individuals
- Fraudulently obtaining money from the Paycheck Protection Program (PPP) during the COVID crisis
While many victims believed they were investing in legitimate opportunities or helping someone in need, Thrash was instead gambling the money, paying off previous victims, and covering personal expenses.
This is a classic example of what’s called a Ponzi scheme, where money from new victims is used to pay off earlier ones to avoid raising suspicion.
What Happens Next?
The court has not yet scheduled Thrash’s sentencing hearing. His punishment will be based on federal sentencing guidelines and other legal factors. The maximum sentence allowed under the law for wire fraud is 30 years in federal prison. He may also be required to pay heavy fines and restitution to the people he cheated.
However, it’s important to note that 30 years is the maximum, and the actual sentence could be less, depending on the court’s decision.
Agencies Involved in the Investigation
This case is the result of a joint investigation by multiple law enforcement agencies, including:
- FBI – Lufkin Field Office
- Texas Department of Public Safety
- Lufkin Police Department
The case is being prosecuted by Assistant U.S. Attorney Lauren Gaston.