Stone Rose Partner Matthew Stoen Sentenced to 24 Months After Faking Firm's Cash Balance to Investors

Case from 2014–2019 (U.S. Attorney's Office release: May 2, 2014; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Matthew Stoen, a founder and effectively the managing general partner of real estate investment firm Stone Rose LP, was indicted in April 2014 on charges that he fraudulently obtained more than $10 million from more than 50 investors, many in the Chicago area, and misused it, the U.S. Attorney's Office for the Northern District of Illinois announced [1].

Outcome: Stoen pleaded guilty in October 2017 to one count of wire fraud. U.S. District Judge Joan Humphrey Lefkow sentenced him in May 2018 to 24 months in prison, below an advisory range of 41 to 51 months, and ordered $1,271,382 in restitution. The Seventh Circuit affirmed on Jan. 7, 2019 [2].

How the scheme worked

According to the Seventh Circuit's summary of the record [2] and the indictment [1]:

1. The firm: Stone Rose was formed in February 2006 to raise money for real estate, including projects in the Kansas City area. In its first two years it raised more than $10 million from about 50 investors through limited partnership interests.
2. Treating it as his own account: Stoen began taking firm money from the start, including $1,136,800 transferred to his wife, $594,500 to a Chicago restaurant he partly owned, and $35,000 for a Porsche down payment. He and the government agreed he stole $2,575,378 over about three years.
3. The false report: In November 2008, he distributed a financial report showing $8,212,848 in cash on hand when the firm had $1,546,848. That report was the basis of the count he pleaded guilty to.
4. The trust-fund story: He also borrowed $850,000 from two outside individuals by falsely claiming to be the beneficiary of a trust fund.

Investors grew suspicious and sued Stone Rose in June 2010, the appeals court said.

The person sentenced

Matthew Stoen, 35 at indictment, Wayzata, Minn., formerly of St. Charles and Chicago

• Indicted: April 2014 on four counts of mail fraud and two counts of wire fraud.
• Plea: guilty to one count of wire fraud, October 2017.
• Sentence (May 2018): 24 months in prison; $1,271,382 restitution. Affirmed Jan. 7, 2019 (No. 18-2256) [2].

Red flags

• Managing partners with sole control of the partnership's bank accounts.
• Internal "financial reviews" instead of audited statements from an outside accountant.
• Claims of family trust money used to win trust or loans.

What to do if you're targeted

1. Ask for audited financials and bank statements for a private real estate fund, and insist on dual signatures for large transfers.
2. Check the offering and sponsors with your state securities regulator and the SEC's EDGAR for a Form D.
3. Report suspected investment fraud to the SEC at sec.gov/tcr.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Matthew Stoen	N.D. Ill. (Judge Lefkow), 14 CR 242; 7th Cir. No. 18-2256	Pleaded guilty Oct. 2017; sentenced May 2018 to 24 months; $1,271,382 restitution; affirmed Jan. 7, 2019	[1], [2]

The sentence was imposed in 2018; we have not found a source on Stoen's current custody status.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Real Estate Investment Partner Indicted For Allegedly Cheating At Least 50 Mostly Chicago Area Investors Of $10 Million," May 2, 2014. https://www.justice.gov/usao-ndil/pr/real-estate-investment-partner-indicted-allegedly-cheating-least-50-mostly-chicago-area
2. U.S. Court of Appeals for the Seventh Circuit, United States v. Matthew Stoen, No. 18-2256, Jan. 7, 2019 (nonprecedential). https://storage.courtlistener.com/pdf/2019/01/07/united_states_v._matthew_stoen.pdf

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