Judge delays release of attorney accused in multimillion-dollar Ponzi scheme
A federal judge has granted a court order to keep an attorney accused of a multimillion-dollar Ponzi scheme in custody for at least another week.
On Friday, U.S. Magistrate Judge Cam Ferenbach ordered that Matthew Beasley, 50, be released from federal custody but then delayed his release until Monday to give prosecutors the chance to appeal the order. On Monday, District Judge Jennifer Dorsey signed an order further delaying Beasley’s release until a hearing can be held reviewing the magistrate judge’s decision.
Another hearing to decide Beasley’s detention status is scheduled for April 18.
“Good cause for a stay exists because the defendant presents a severe flight risk and danger to the community if released,” federal prosecutors Daniel Schiess and Eric Schmale wrote in Monday’s court order.
Beasley’s defense attorney, Jacqueline Tirinnanzi, argued Friday that Beasley was not a flight risk because he had strong ties to the Las Vegas area and that he has not been put on suicide watch during his 13 months in custody.
Tirinnanzi declined to comment on the case on Monday.
Beasley has pleaded not guilty to five counts of wire fraud and three counts of money laundering after being indicted for his alleged role in the Ponzi scheme.
The scheme started in 2017 and was pitched as an investment to earn annual returns of 50 percent by lending money to slip-and-fall victims awaiting checks after lawsuit settlements. Prosecutors accused Beasley of creating fake contracts to lend money to plaintiffs and using others to find investors in fake accounts.
The $460 million scheme involved more than 1,000 victims. An investigation by The Washington Post, in partnership with the Las Vegas Review-Journal, found that Beasley and his business partner Jeffrey Judd targeted members of The Church of Jesus Christ of Latter-day Saints.
Federal agents raided Beasley’s Las Vegas home in March 2022. Beasley came to the door holding a gun to his head and then pointed a gun at agents, who shot Beasley in the chest and shoulder, prosecutors have said.
Beasley was facing a count of assault on a federal officer, but the charge was dismissed last week.
Contact Katelyn Newberg at knewberg@reviewjournal.com or 702-383-0240. Follow @k_newberg on Twitter.
