Federal attorneys are pushing for former Dog House Grill general manager Matthew Billingsley, 39, to serve more than 11 years behind bars.
They are also asking a federal judge to order Billingsley to pay $12.5 million in restitution after he defrauded lenders and financial institutions out of $30 million.
The backstory: Billingsley agreed to a plea deal in August in his federal fraud case, pleading guilty to one count of wire fraud.
- Court documents state that from June 2018 to February 2023, Billingsley made false representations about having a brokerage account with millions of dollars in assets to serve as collateral for loans in order to obtain over $30 million.
- The purported brokerage account did not exist, and Billingsley took the loan money to pay down previous loans and also for his own personal benefit.
- The charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
State of play: Billingsley was scheduled to be sentenced on Monday, but the sentencing was continued to Dec. 8.
What we’re watching: According to the sentencing memorandum filed in court, the federal government is requesting that Billingsley is sentenced to 11 years and three months in prison.
- The government is also requesting three years of supervised release for Billingsley and wants the court to order him to pay $12.5 million in restitution.
- Billingsley is requesting that the court sentence him to five years in prison, and the sentencing memorandum filed by his attorney states that the restitution should total nearly $10.3 million instead.
Go deeper: Billingsley’s attorney Daniel Bacon wrote in the sentencing memorandum that his fraud scheme was not “complex nor intricate,” even though he admitted to creating fake brokerage statements, a fake profit-sharing plan and several forged letters to obtain loans.
- “He did not create fictitious entities, corporate shells, or offshore accounts to avoid detection,” Bacon wrote. “All the loan funds were easily traceable and discovery of his fraud was not difficult.”
- But the government’s sentencing memorandum details further transgressions by Billingsley. Federal prosecutors said Billingsley contacted one of the victims after learning that two related victims came forward after his guilty plea. Billingsley told the victim that he knew the victim spoke with law enforcement and indicated he would no longer attempt to pay the victim back.
- “Given the severity of the defendant’s crimes, his conduct in informing victims that he would no longer attempt to pay them back based on them reporting his crimes to law enforcement, the need for specific and general deterrence, and the need to protect the public, the defendant should receive a significant prison sentence of 135 months,” federal prosecutors wrote.
- Prosecutors also stated that the government obtained a search warrant for Billingsley’s phone during the investigation, which revealed text messages with an accomplice to edit documents to send to banks to obtain loans.
- “The text messages also revealed the defendant’s greed and callous disregard for his victims,” prosecutors wrote. Prosecutors went on to detail how Billingsley had no regard for one of his victims that had severe medical issues: “The defendant texted his accomplice stating, ‘[Victim] had a massive heart attack and is a coma Wtf.’ When the defendant’s accomplice asked again later about the victim, the defendant simply stated, ‘We got to get [another victim]. I will also have that 222 k paid tomorrow… [Victim] in coma. Day 4.’ The defendant’s accomplice said, ‘Shit is he done? What does that mean for loan?’ The defendant replied, ‘I don’t know. Nothing right. Just keep going ? Or you think they will call it?’”
Victims speak out: The federal filing also included several victim impact statements from investors who detailed their hardships because of Billlingsley’s lies.
- One victim told an FBI agent that he lent Billingsley $50,000 in 2018. In turn, Billingsley promised to pay 3% per month interest until the full $50,000 was paid back. The $50,000 came from a $75,000 FedEx settlement and was his life savings. Billingsley made the payments and in July 2022 asked for an additional loan, leading the victim to give him the other $25,000. When Billingsley stopped making payments on the loan, the victim repeatedly asked for his money back. Billingsley gave him two checks that ultimately bounced.
- “The last time [victim] spoke to Billingsley, he seemed like he had gone a little crazy,” the FBI’s report reads. “He told [victim] that if he wanted to beat him up or blow him away, then ‘be my guest, you’d be doing me a favor.’ Billingsley seems to have given up on everything, but the declined checks make [victim] believe that Billingsley is still trying to scam people.”
- Another victim detailed how Billingsley asked to borrow $1.5 million for 30 days. After loaning the money, Billingsley made excuses after the 30-day period for not being able to repay the money.
The world didn’t stop after I got scammed by Matt Billingsley,” the victim wrote. “It continued, and I had to figure something out to be able to pay my bills, child support, and just my everyday living. I personally had to pull out personal loans, ask friends and family for help, and even sell my car to meet my financial needs. The biggest thing I had to do due to this tragic incident was to sell my home. Unfortunately, I went from owning a home to now renting a home and making monthly payments.”
