Matthew Billingsley, the former general manager of a popular tri-tip sandwich shop in Fresno, used forged financial documents and the lure of a low-risk investment to finesse millions of dollars from deep-pocketed investors and financial institutions, according to court documents.
The 39-year-old Billingsley never delivered on the promised pay out, nor did he repay all of his investors.
Billingsley, who recently pleaded guilty to one count of wire fraud in U.S. District Court, was adept at calming jittery investors. He would tell them repeatedly not to worry, business at his family’s restaurant, Dog House Grill, was booming.
“He would tell us that gross sales at Dog House were $40,000 to $60,000 a day,” said Ahmed Mshaka of Fresno, one of Billingsley’s victims.
He even told one potential investor that his paycheck at the restaurant was $660,000 one year and the next year it was $1.7 million.
Mshaka, a financial consultant, said Billingsley’s scheme was to lure investors in with the promise a quick return on their low risk investment. He said he needed the money because he was in a desperate situation and he couldn’t access his brokerage account that was allegedly worth millions.
“He showed us documents that said he had $11 million in liquidity, but he couldn’t access it because he was in the middle of a divorce,” Mshaka said. “Knowing something about divorce, I thought that story sounds legitimate. He seemed like he really needed help.”
Mshaka said the investors gave Billingsley about $1.25 million. But when it came time to collect their investment, there were excuses and bounced checks.
“He made attempts at payment and wrote us a $700,000 check, but it bounced,” Mshaka said. “Then he wrote us another check for $500,000 and the same thing happened. At this point, my bank is looking at me like I am the fraudster.”
Federal investigators eventually closed in on Billingsley, who pleaded guilty to one count of wire fraud, defrauding individual lenders and financial institutions out of $30 million, authorities say.
Billingsley, whose scheme stretched from June 2018 to February 2023, is scheduled to be sentenced on Nov. 10 and faces a maximum of 20 years in prison and a $250,000 fine.
In his plea deal, he also agreed to pay restitution up to $20 million.
Billingsley also has been sued in civil court multiple times by investors and lending institutions. The court has issued judgements against Billingsley in three cases, totaling more than $5 million.
Billingsley’s defense attorney Dan Bacon said his client has accepted responsibility for what he did and will offer more of an explanation at his sentencing.
“He will talk about how he got into this mess and how he tried to get out of it,” Bacon said. “It’s not an excuse, but it is a reason.”
Lawyer Tim Thompson, a partner with Whitney, Thompson & Jeffcoach in Fresno, was successful in winning a judgement of $2.6 million on behalf of two clients against Billingsley.
Thompson said he is no stranger to representing the victims of fraudsters and their approach is often the same. They develop a friendship with the victim, eventually earning their trust. Then they offer them a can’t miss opportunity to make lots of money with little to no risk.
But Billingsley was slightly different from the others, Thompson said. He didn’t run, when his fraud was revealed.
Also unusual was Thompson dealt with Billingsley himself in settlement discussions.
“Frankly, he was civil, polite and straightforward,” he said “At one point he said he felt bad that he couldn’t get those guys paid back. In my business you don’t always hear that.”
Billingsley is part of the family that operates a small chain of restaurants known for their tri-tip sandwiches, burgers and french fries. They have restaurants in Cambria, San Luis Obispo, Fresno and Bakersfield.
The founders, David and Vickie Billingsley, put Matthew in charge of the Fresno restaurant that opened in 2004. Since then, the restaurant located across the street from the Save Mart Center on the Fresno State Campus has maintained a steady flow of customers.
Representatives with Dog House Grill and Firestone Grill in San Luis Obispo did not respond for comment.
