PHILADELPHIA, PA — A Lancaster man pleaded guilty Thursday to multiple fraud and identity theft charges for schemes that defrauded investors and a financial institution of more than $755,000, federal prosecutors said.
Matthew James Addy, 47, entered guilty pleas before U.S. District Judge John M. Gallagher to 13 counts of wire fraud, one count of bank fraud and two counts of aggravated identity theft.
According to court filings, Addy misrepresented himself as a successful businessman to solicit investments and loans between January 2020 and July 2022.
Prosecutors said Addy falsely claimed significant personal wealth and exaggerated the performance of a purported consulting business, the Yarah Group, which he represented as being based in Beverly Hills, California, and valued at about $200 million.
Addy admitted to inducing one victim to hire him to operate a business and to provide loans and investments tied to the Yarah Group.
He also used the victim’s identifying information without authorization to obtain loans in the victim’s name, listing the victim as a guarantor and failing to repay the debts.
Authorities said the scheme resulted in losses of approximately $722,496 to that victim.
In a separate scheme between April and June 2023, Addy allegedly persuaded a second victim to provide $25,000 for what he described as a short-term bridge loan through a company he called Yarah Holdings PLC.
Instead, prosecutors said, Addy used the funds for personal expenses and did not repay the loan.
Addy also admitted to defrauding a Pennsylvania-based federal credit union by depositing an $8,500 check drawn on a business account and withdrawing the funds before the check was returned for insufficient funds.
When contacted by a fraud investigator, Addy made false statements about the transaction, according to prosecutors.
Addy was charged by indictment in October 2025.
He is scheduled to be sentenced on July 28, 2026, and faces a maximum sentence of 294 years in prison, along with supervised release and restitution totaling $755,995.
The case was investigated by the FBI’s Philadelphia office and is being prosecuted by Assistant U.S. Attorney Mary E. Crawley.
All suspects, arrestees, and defendants are presumed innocent until proven guilty in a court of law.
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