Las Vegas man enters plea in federal Ponzi scheme case
A man accused of scamming investors in a sports betting scheme pleaded not guilty Thursday morning to federal charges in the case.
Matthew Turnipseede, 49, made his initial appearance by video call before U.S. Magistrate Jonathan Greenberg in Cleveland, Ohio.
Turnipseede is from Las Vegas but is charged with wire fraud and mail fraud in a 13-count indictment filed in federal court in Ohio.
Prosecutors accuse Turnipseede of promoting a Ponzi scheme, where investors were promised double-digit returns from wagers made by Turnipseede’s company. But, the indictment alleges, the business never generated the promised profits.
Instead, the indictment states, “Defendant used the victims’ money to perpetuate the scheme by using the investors’ money to maintain the business and seek new sources of funds to pay off investors who had invested earlier and to fund his personal expenses.”
Those personal expenses included family trips to Disneyland and Hawaii, spa treatments and country club memberships, according to prosecutors.
In all, 72 investors are alleged to have been scammed, with the total amount of fraud estimated at more than $8 million.
Turnipseede was ordered to surrender his passport pending trial. He is free on an unsecured $20,000 bond.
Contact Glen A. Meek at gmeek@reviewjournal.com or 602-380-8951. Follow @GlenMeekLV on Twitter.
