Feds: Rockford-area contractor’s ‘investment’ scheme netted $718,000

GRAND RAPIDS, Mich. (WOOD) — Two years after Target 8 confronted a contractor accused of ripping off a West Michigan family, the suspected scammer is facing a new foe: the United States government.

A federal grand jury voted to indict Matthew James Mencarelli, 38 of Belmont, on seven counts of wire fraud.

Target 8: Rockford-area contractor accused of taking cash, not delivering

The indictment, filed Tuesday, alleges that Mencarelli convinced multiple people to invest hundreds of thousands of dollars in projects that did not exist.

He used the proceeds from the alleged scheme, which totaled $718,680, to pay off earlier victims or for personal expenses, federal prosecutors wrote in an indictment filed in U.S. District Court in Grand Rapids.

“The scheme consisted of Mencarelli soliciting individuals to invest in infrastructure construction projects pursuant to contracts Mencarelli, or others he was supposedly working with, had secured with state and local governmental entities,” wrote Assistant U.S. Attorney Stephen P. Baker.

According to the indictment, Mencarelli told some unsuspecting “investors” that he, or someone with whom he was working, had a contract to lay fiber optic cable in or near Traverse City.

“In some instances, Mencarelli falsely represented that to maintain the government contract, he had to show the governmental entity that he had a large sum of cash on hand as a form of surety, and so told the investor that there was no risk associated with the investment, as Mencarelli simply needed such a sum of cash to show the government entity, and it would remain untouched in a bank account until it was paid back with interest,” wrote Baker in the indictment.

Prosecutors added that, in fact, Mencarelli had “no such government contract, maintained no such account of funds, and was not working with anyone else who had such a government contract.”

Target 8 first exposed Mencarelli in November 2021 after he took $9,000 from Jeff and Becki Agar to begin renovating the basement of their Rockford home.

The goal of the project was to create a space where Johnny Agar, who has cerebral palsy and uses a motorized chair, could live more independently.

The Agars are well-known in the community and beyond because Johnny, now 29, and his dad, Jeff, compete in endurance races as a father-son team.

But the Agars told Target 8 they could not endure any more excuses or unfulfilled promises from Mencarelli who, six months after receiving their $9,000, had not started the renovation.

The Agars asked for their money back but told Target 8 Mencarelli never produced it.

The Agars did, however, receive an extraordinary gift from West Michigan’s community of builders, one of whom reached out to Target 8 to offer his services to the Agars for free.

Ultimately, in less than a month — and just in time for Christmas — workers from at least a half a dozen companies came together to turn the Agars’ basement into a dream apartment for Johnny.

The grateful family called it a Christmas miracle.

The team of Secret Santas donated their skill and time, as well as all of the materials.

‘Christmas miracle’ after contractor allegedly ripped off Rockford family

Two years later, Mencarelli is facing federal charges in an entirely different alleged scam.

“That is sad,” said Becki Agar of the indictment.

Target 8 checked in with the Agars Thursday morning.

“I feel bad for the people he scammed, obviously, us being one of them,” said Becki Agar. “But I feel bad for his family too. I feel bad for him. I wish he’d have gotten help a long time ago … But he’s hurt so many people. It’s probably best that he’s having to be held accountable.”

In the indictment made public Tuesday, federal prosecutors said Mencarelli committed seven instances of wire fraud in 2020 and 2021 involving six alleged victims.

On May 7, 2020, according to the indictment, Mencarelli sent an email with a fake bank statement attached to it “falsely representing a $160,300” wire transfer to an (alleged victim’s) bank account.

In September and October 2020, in three separate transactions, Mencarelli “caused to be deposited through wires” $75,000 into his “Matthew’s Woodworking bank account with TCF Bank,” stated the indictment.

In January and February 2021, Mencarelli allegedly “deposited through wires” another $485,000 into his business bank account in three different transactions.

While the fraud detailed in the indictment totals $560,000, federal prosecutors said Mencarelli received at least $718,680 in total, proceeds they said he’d obtained  “directly or indirectly,” through the offenses charged.

The wire fraud charges carry a maximum sentence of 20 years in prison. According to the indictment, if convicted, Mencarelli must forfeit any property derived from the alleged fraud, including but not limited to the $718,680 and the Belmont property on which he’s been renovating a house.

Mencarelli, reached by phone Wednesday evening, told Target 8 he knew nothing about any federal indictment.

He said the wire fraud allegations were “quashed” or “squashed” two years ago.

Mencarelli shared his attorney’s name with Target 8 but declined to say in what city the lawyer practices. He also promised to text Target 8 his attorney’s phone number but never did so.

Target 8 contacted a lawyer of the same name in Portage, but we did not hear back.

The Agars, meanwhile, remain grateful to the team of contractors that stepped in to finish what Mencarelli never started.

“Oh my gosh, it’s been such a blessing for us,” said Becki of Johnny’s renovated apartment. “I mean as soon as you got here, (Johnny) said, ‘Can I offer you something to drink?’ That’s what he loves to do. This is his space. He claims it. But he loves having friends over.”

Johnny is getting ready to celebrate his 30th birthday.

“What I like best about my apartment is just having my own space to decompress and gather my own thoughts,” said Johnny. “And just being able to welcome guests and have a lot of my friends down here and not have to worry about mom and dad looking over my shoulder. It’s awesome. I love mom and dad, but it’s nice to have my own space.”

The Agars said the apartment also gives Johnny the invaluable opportunity to learn, grow and work on becoming more independent.

“We’re just so very thankful to all the people who worked on this space,” said Becki.

For the latest news, weather, sports, and streaming video, head to WOODTV.com.