Lehi, Utah man pleads guilty in $60 million Hedgehog Investments LLC Ponzi scheme
KUTV reported on 3 November 2026 that a Lehi, Utah man pleaded guilty to conspiracy to commit wire fraud and money laundering over the $60 million Hedgehog Investments Ponzi scheme. Sentencing is set for 12 January 2027.
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Source: kutv.com · published
What happened
KUTV reported on 3 November 2026 that a Utah County man pleaded guilty to taking part in a Ponzi scheme that defrauded hundreds of investors of more than $60 million since 2020. KUTV names him as Matthew Morrison Bates, 42, of Lehi, who pleaded guilty to conspiracy to commit wire fraud and money laundering at a change of plea hearing on Monday, 2 November. The report was published at 6:27 am on 3 November.
How the scam works
According to court documents cited by KUTV, Bates was part of a group that defrauded investors using short-term promissory notes. Investors were told the notes would be used by Bates' company, Hedgehog Investments LLC, to make “bridge loans” to companies that needed financial assistance. At the hearing Bates admitted that investors were promised significant returns once the bridge loans were repaid. In fact, Hedgehog Investments did not extend any loans, and the returns paid to investors came from new investors' money.
Prosecutors said the scheme gave the appearance of profitability while investors lost more than $60 million through to June 2025. This is the classic pattern of a Ponzi scheme, where early investors are paid with later investors' money and the structure fails when new funds slow. KUTV does not describe how investors were found, how much each person invested or whether any money has been recovered. Other people involved are not named in the report.
Bates was charged on 30 September 2026 and pleaded guilty just over a month later. He is scheduled to be sentenced on 12 January 2027 at the Orrin G. Hatch United States Courthouse in Salt Lake City. The sentence has not been decided. A guilty plea is an admission by Bates, not a finding about anyone else.
Source
KUTV (Derick Fox), “Utah County man pleads guilty to defrauding investors in $60 million Ponzi scheme”, 3 November 2026.
Red flags
- Short-term promissory notes presented as funding “bridge loans” to companies.
- Promises of significant returns when the loans were repaid.
- Returns paid from new investors' money, not from real lending, according to the plea.
- An appearance of profitability that hid large losses.
- Investment offers from a private company with no independent verification.
If you were targeted
- 1Be wary of promissory-note or loan-fund offers that promise steady high returns.
- 2Ask where the money goes and ask for independent audited proof of loans before investing.
- 3Check the seller and the offering on your state securities regulator's website.
- 4Never rely on early payouts as proof that an investment is real.
- 5If you invested in Hedgehog Investments, keep all records and contact the prosecutors or your state securities regulator.