The U.S. Attorney’s office is asking a federal judge to sentence Matthew Billingsley, a former Fresno restaurant manager turned fraudster, to 11 years in prison and to repay his investors $12.5 million.
The 39-year-old Billingsley, who worked at Dog House Grill on Shaw Avenue, was accused by federal investigators of defrauding lending institutions and investors of $30 million in a can’t-miss investment scheme he ran from June 2018 to February 2023.
In August, Billingsley pleaded guilty to one count of wire fraud. He was scheduled to be sentenced Monday, but the hearing was continued to Dec. 8 in United States District Judge Jennifer L. Thurston’s courtroom.
Although Billingsley’s crime carries a maximum penalty of 20 years in prison and a $250,000 fine, federal prosecutors with the assistance of the probation department have calculated his punishment to be 135 months, or 11.2 years in prison, three years of supervised release, and $12,504,769.27 in restitution.
Scheme went on for nearly five years
Attorney Daniel Bacon, who represents Billingsley, argued for a lighter sentence of five years and restitution of $10,275,385. Bacon argued in court filings that his client admitted wrongdoing and did pay back some of the investors.
He also challenged the government’s description of Billingsley’s scheme as being “sophisticated,” an act that carries a stiffer penalty.
“Although Billingsley created fake brokerage statements, a fake profit-sharing plan, and several forged letters to obtain loans, his activities were neither complex nor intricate,” according to court documents.
Prosecutors saw it differently. Using victim statements and text messages between Billingsley and an accomplice, it shows they were able to continue the scheme for several years before it collapsed and checks began bouncing.
“The defendant defrauded victims out of millions of dollars. He made calculated and repeated decisions to commit and continue his crimes over nearly five years by altering documents, forging signatures, and lying to people,” according to court documents.
Fraud victims’ statements reflect anger, hardship
Recent court filings contain several statements from investors who are owed varying amounts, ranging from $2.3 million to $200,000.
In each of the statements, investors reflected their anger at being duped by Billingsley, whose family founded a popular chain of restaurants known for their tri-tip sandwiches, burgers and french fries. They have restaurants in Cambria, San Luis Obispo, Fresno and Bakersfield.
One investor wrote: “Recently I received information that the defendant would be providing the court with an explanation as to his motivation for stealing my money. He is no victim in this situation and I am not at all interested in hearing his rationale for fraud and theft. I am, however, interested in his repayment of every dime he stole from me, plus interest and attorney’s fees. Beyond that he can enjoy his prison commitment from the Dog House to the big house.”
The Dog House Grill on Shaw Avenue near Highway 168 and the Fresno State campus.
Another investor said the loss of his $50,000 investment ruined his family’s life.
“This has left us in a state of financial hardship, and we are now struggling to find a way to keep our home. The loss of these funds has had a profound impact on our family’s life. We are facing mounting stress and uncertainty, and our ability to meet basic financial obligations has been severely compromised,” the investor wrote.
During the investigation, federal agents used a search warrant to obtain text messages between Billingsley and an unnamed accomplice, who, so far, has not been charged.
One conversation in 2018 was about an investor who had recently suffered a heart attack and was in a coma. The accomplice was concerned they may not get the money from the investor.
“(Victim) had a massive heart attack and is a coma Wtf.”
The defendant’s alleged accomplice responded saying, “F—. What does that do to the loan?”
When they asked again later about the victim, Billingsley replied: “We got to get (another victim).”