Las Vegas Man Sentenced to Prison for Operating Sports Betting Ponzi Scheme That Stole More Than $8.5M from Victims

CLEVELAND – Matthew J. Turnipseede, 51, of Las Vegas, Nevada, has been sentenced to more than five years in prison (65 months) by U.S. District Court Judge Christopher A. Boyko after admitting to orchestrating a Ponzi scheme that defrauded business investors out of over $8.5 million. He was also ordered to pay $4,731,165.10 in restitution. Turnipseede pleaded guilty to four counts of wire fraud in November 2024.

According to the indictment, from March 2015 to May 2021, Turnipseede induced approximately 72 individuals in Ohio and elsewhere to invest over $8.5 million in his betting companies, Edgewize and Moneyline Analytics. He promised that their funds would be used to make sophisticated sports wagers which used an algorithm that generated double-digit returns. Turnipseede also told investors that he would not take compensation for placing wagers, but instead would retain a percentage of winning profits.

In truth, none of Turnipseede’s companies ever generated the promised profits. Instead, the defendant used the investors’ money to maintain the businesses, seek additional sources of funds, and pay off earlier investors.

To perpetuate the scheme, the defendant emailed the victim-investors periodic updates describing how successful Edgewize and Moneyline Analytics were. He also emailed the victim-investors falsified financial statements purporting to show substantial gains on their investments. When a victim wanted to withdraw some, or all, of their funds, Turnipseede would use money invested by other victims to cover the withdrawal request. The scheme collapsed in May 2021 when Turnipseede declared bankruptcy, still owing his investors over $4.7 million in principal alone.

The defendant also admitted to using investor funds for his personal expenses such as family trips, spa treatments, lease payments on multiple vehicles, and country club membership dues.

This case was investigated by the FBI Cleveland Division and prosecuted by Assistant U.S. Attorneys Erica D. Barnhill and Brian M. McDonough for the Northern District of Ohio.