Las Vegas Sports Bettor Sentenced After $7.4 Million Ponzi Collapse
A man from Las Vegas has been sentenced to five years and five months in federal prison for operating a sports betting investment fund that escalated into a multimillion-dollar Ponzi scheme.
From 2015 to 2021, Matthew Turnipseede, 51, deceived 72 investors at his company, MoneyLine Analytics, out of approximately $7.4 million.
His victims included those who had placed their retirement funds in his care. A cancer patient has been compelled to return to work after depleting her life savings, according to Cleveland.com.
Deceptive Assurances
Turnipseede assured his targets that he could generate significant returns on their investments by leveraging his sports betting skills to execute a high number of small bets on baseball, basketball, football, and European soccer. The sole issue with the plan was that Tunipseede was a terrible sports gambler.
In November 2024, he admitted guilt to four charges of wire fraud linked to the scheme, wherein he compensated early investors with funds from new investors to create the illusion that the system was effective.
During his sentencing hearing on Wednesday, Turnipseede expressed remorse to his victims and requested leniency from the judge, mentioning that his wife and two teenage kids depended on him.
Turnipseede was portrayed by his attorney, Russell March, as a “committed family man” who had no intention of committing fraud. He was an individual who sincerely, yet incorrectly, thought he could increase his clients’ funds, and he also suffered significant losses on his personal wagers, as reported by March.
“This was not a case where he was living the high life,” March said, as reported by Cleveland.com. “At its heart, it was a gambling venture and more akin to problem gambling. The more he lost, the more bets he made.”
Shattered Survivors
A few of his victims were less forgiving. Jennifer North expressed that Turnipseede’s “shameful” plan had left her heartbroken, making her question if she could ever trust anyone again.
“He did this so effortlessly,” North said. “Without meaningful consequences, he’s not going to change. It’s who he is.”
Out of the $7.4 million, Turnipseede allocated approximately $2.7 million to repay prior investors. He also utilized part of the funds to rent cars, go on trips to Hawaii and Disneyland, and cover expenses for spa visits and country club fees.
He also created fake documents to make it seem to his victims that their investments were increasing.
The plan fell apart “like a house of cards” in 2021, when some investors requested refunds, leading Turnipseede to declare bankruptcy.
Besides his prison term, US District Judge Christopher Boyko instructed Turnipseede to pay $4.7 million in restitution. The case was brought to trial in Ohio, the location of some of his victims' residences.
