A former Sarnia resident with a documented history of multi-million-dollar fraud has pleaded guilty in U.S.
A former Sarnia resident with a documented history of multi-million-dollar fraud has pleaded guilty in U.S. federal court to a new series of fraud and identity theft offences — coinciding with multiple reports that he was actively soliciting investments from Sarnia residents over the past two years.
Matthew James Addy, 47, of Lancaster, Pennsylvania, entered guilty pleas on April 9, 2026, before U.S. District Judge John M. Gallagher in the Eastern District of Pennsylvania. He admitted to 13 counts of wire fraud, one count of bank fraud, and two counts of aggravated identity theft.
According to the U.S. Attorney’s Office for the Eastern District of Pennsylvania and court filings, Addy held himself out as a wealthy businessman, entrepreneur and investor. He made false claims about his personal net worth and the success of companies he operated, including “the Yarah Group” — which he falsely described as a Beverly Hills, California-based consulting firm worth approximately $200 million — and “Yarah Holdings PLC.”
In one scheme from approximately January 2020 to July 2022, Addy convinced a victim (referred to in court documents as Victim 1) to hire him to operate their business and to provide multiple loans and investments in the Yarah Group. He then used the victim’s personal identifying information without consent to apply for loans in the victim’s name, listing the victim as guarantor. Those loans were never repaid. Victim 1 lost approximately $722,496.
In a separate scheme from April to June 2023, Addy approached a second victim (Victim 2), whom he had socialized with. He claimed to be a successful diamond dealer who had made his first million dollars by age 30. Addy persuaded Victim 2 to provide $25,000 for a short-term “bridge loan” to a contractor through Yarah Holdings PLC, promising repayment of $30,000 shortly afterward. Instead, he used the money for unauthorized purposes, including personal benefit, and failed to repay the victim despite signing a promissory note.
Addy also defrauded a Pennsylvania federal credit union by depositing an approximately $8,500 cheque drawn on Victim 1’s business account into his own account, withdrawing the cash the same day, and then making false statements to the credit union’s fraud investigator when the cheque bounced. He never repaid the $8,500.
Total losses across the schemes amount to $755,995. Addy faces a statutory maximum of 294 years in prison, though his actual sentence will be determined under federal guidelines. Sentencing is scheduled for July 28, 2026. He has been in federal custody since his arrest.
This is Addy’s second major federal fraud conviction. In 2013, he pleaded guilty in the Eastern District of Virginia to securities fraud for operating a $3.4 million Ponzi scheme through businesses including Edward J. & Co. and LaPorte Jewelers.
Federal prosecutors described the scheme as affinity fraud. After serving as a youth pastor in Scotland for several years, Addy leveraged his background in faith communities to recruit more than 40 victims, many from religious organizations. He presented himself as a wholesale jewelry and gemstone dealer but used new investor funds to pay earlier investors and support a personal lifestyle. He was sentenced to 51 months in federal prison and ordered to pay approximately $2.74 million in restitution.
Court records in the current case list addresses for Addy in both Pennsylvania and Canada, consistent with his Sarnia roots.
The Sarnia Journal has received reports from multiple Sarnia residents that Addy was active in the city within the last two years. He was reportedly seen frequenting local bars and social settings, where he solicited at least three residents — and others known to the community — for investments. Specific pitches included proposals to franchise a small local business or to participate in a condo development project at the site of the former Chipican Motel. There is no evidence that Addy had any legal or official connection to the owners or redevelopment of that property.
Note on restitution: Victims of the 2013 scheme were ordered more than $2.74 million in restitution, and victims in the current case are owed $755,995. In fraud cases of this nature, victims often recover only a small fraction — if any — of their losses.
The public is urged to treat any unsolicited investment or business proposals with extreme caution, especially those involving:
Anyone who has been approached by anyone matching this pattern about investments, loans, franchises or development deals is strongly encouraged to:
This story is based entirely on publicly available U.S. Department of Justice press releases, federal court records from both the 2013 and 2026 cases, and verified reports received directly by The Sarnia Journal from multiple Sarnia residents.
The Journal will continue to follow the case and provide updates following Addy’s July 28, 2026 sentencing.
Sources:
If you have information relevant to this story that is verifiable through public records or official channels, contact the Sarnia Journal newsroom.
