Lehi man pleads guilty in $60 million Ponzi scheme

SALT LAKE CITY — A Lehi man charged in federal court with running an alleged $60 million Ponzi scheme pleaded guilty Monday to wire fraud and money laundering.

Matthew Morrison Bates, 42, made his first court appearance Monday after being charged with conspiracy to commit wire fraud and money laundering. During the hearing, he pleaded guilty to both charges. He is scheduled to be sentenced on Jan. 12.

A federal felony complaint initially charged Bates on Sept. 30, alleging he ran his Ponzi scheme from May 2020 through June 2025 and defrauded investors with false promises through his company, Hedgehog Investments LLC.

Prosecutors said the company used "bridge loans" to attract companies seeking financial assistance to reduce debt and maximize creditworthiness. According to the felony charges, investors were promised returns ranging from 20% to 100% of the principal.

"Investors were promised significant returns would be generated as the 'bridge loans' were repaid by recipient businesses, but Hedgehog Investments did not extend 'bridge loans,' and any investor returns were paid with new investor funds, giving the false appearance of profitability," the U.S. Attorney's Office of Utah said.

Bates and his company allegedly solicited investors for Hedgehog Investments through in-person meetings, phone calls, electronic communications, websites, and social media, federal prosecutors said.

Bates' scheme also used dozens of "materially false statements" to investors, including incorrect statements about the company's alleged rigorous vetting process for potential investors, the charges said.

In total, Bates received more than $60 million from "hundreds of investors," the charges state.

Bates and Hedgehog Investments are also involved in an ongoing state case where a former investor sued, alleging securities fraud by Bates and Hedgehog Investments, according to court records.

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