Mathon Fund CFO Brent F. Williams Sentenced to 90 Months, Over $15 Million in Restitution for Ponzi Scheme

Phoenix, AZ – Brent F. Williams, formerly the Chief Financial Officer (CFO) of Mathon Management Company, has been sentenced to 90 months in federal prison and ordered to pay over $15.6 million in restitution for his role in a multi-million dollar financial fraud. Williams, alongside co-defendants Guy Andrew Williams and Duane Hamblin Slade, was convicted of conspiracy, mail fraud, wire fraud, and transactional money laundering in connection with the Mathon Fund, which operated as a Ponzi scheme. The case exposed a deceptive investment structure that ultimately defrauded numerous investors.

The Mathon Fund, managed by Mathon Management Company, solicited investments with promises of high returns from short-term loans and a robust financial safety net, including a $5 million reserve fund and a $20 million insurance policy. Investors were led to believe their money would be used for new, high-yield loans, with assurances of security and liquidity. However, court proceedings revealed these promises were largely fictitious.

As CFO, Brent F. Williams was deeply involved in the scheme. Testimony indicated that new investor funds were systematically used to pay off earlier investors, a hallmark of a Ponzi scheme, rather than being invested in new loans as advertised. Williams was aware of these practices and, according to court documents, personally benefited from insider transactions, including a $400,000 promissory note that effectively doubled his money and that of other insiders, paid for with new investor funds.

The deceptive practices extended to the fund's marketing materials, known as Private Placement Memorandums (PPMs). These documents misleadingly claimed the existence of a substantial reserve fund and insurance, which were either non-existent or insufficient. Shelley Detwiller DiGiacomo, a securities lawyer who joined Mathon shortly before its shutdown, testified that the reserve fund was primarily comprised of defaulted loans, not cash, and that management dismissed her concerns about these misleading disclosures.

The legal proceedings culminated in significant sentences for the key figures. Guy Andrew Williams received 150 months, and Duane Hamblin Slade was sentenced to 180 months. The substantial restitution orders reflect the widespread financial damage inflicted upon the victims. The case underscores the critical importance of transparency and ethical conduct in financial management, particularly concerning investor funds.

The sentiment surrounding such financial misconduct is often one of profound disappointment and betrayal, as reflected in public commentary. For instance, Brent A. Williams, MD, stated in a tweet, "> This is your country's brain on "equity": https://t.co/e7kcysiKOG," implying a critical view on the state of financial fairness and integrity, possibly referencing the Mathon Fund case as an example of systemic failures or misinterpretations of "equity" in practice.