Matthew Morrison Bates Admits Role in Ponzi Scheme That Cost Investors More Than $60 Million
Lehi, in Utah County, Utah, saw a Ponzi scheme case move forward on November 2: a local man pleaded guilty in federal court to taking part in an investment scheme that collected more than $60 million from hundreds of investors.
The defendant, Matthew Morrison Bates, 42, of Lehi, appeared in court on November 2 for his initial appearance and pleaded guilty to conspiracy to commit wire fraud and money laundering. He was initially charged by felony information on September 30, 2026.
According to court documents and admissions made at Bates' change of plea hearing, beginning in or around May 2020 and continuing in or around June 2025, within the District of Utah and elsewhere, Bates and others devised and executed a scheme to defraud investors in an investment scheme involving short-term promissory notes. Investors were falsely promised the notes would be used exclusively by Bates' company, Hedgehog Investments LLC, to extend 'bridge loans' to companies seeking financial assistance to reduce debt and maximize their creditworthiness, among other benefits.
In reality, Hedgehog Investments did not extend bridge loans, and any investor returns were paid with new investor funds, giving the false appearance of profitability. The Justice Department said investor losses exceed $60 million.
Bates is scheduled to be sentenced on January 12, 2027, at 11:00 a.m. in courtroom 3.4 before a U.S. District Court judge at the Orrin G. Hatch United States Courthouse in downtown Salt Lake City.
United States Attorney Melissa Holyoak of the District of Utah made the announcement. The case was investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office. Assistant United States Attorneys Mark E. Woolf, Tanner Zumwalt, and Brian Williams are prosecuting the case.
(Source: U.S. Department of Justice)
Source: U.S. Department of Justice
Published by GSM · USA (original Chinese edition)
Photo: 图：位于 Salt Lake City 的美国联邦法院大楼（犹他区联邦地区法院所在地）。Swilsonmc 摄，CC BY-SA 3.0，经 Wikimedia Commons。 / Photo: The U.S. Courthouse for the District of Utah in Salt Lake City. Photo by Swilsonmc, CC BY-SA 3.0, via Wikimedia Commons.
