39-year-old Matthew Mencarelli of Belmont was sentenced Tuesday to 97 months in prison for a wire fraud scheme in which he offered phony investments in nonexistent projects.
Court records show in 2018 Mencarelli began soliciting investors when his contracting business, Matthew's Woodworking LLC, was suffering from financial difficulties and unsatisfied customers.
He approached friends and acquaintances from his family’s yacht club and county club, telling them he had lucrative contracts with governments in Traverse City to install fiber optic cable.
He guaranteed high rates of return if the investors loaned him money and made false documents to maintain the charade.
There were no such contracts and Mencarelli used the money to finance his lifestyle, pouring at least $400,000 into a custom-built home.
He also used payments from new investors to pay off older ones.
When it came time to pay investors back, he lied, bullied, and threatened them.
The U.S. District judge found Mencarelli responsible for causing more than $1.6 million in losses to 15 victims.
