Letter to Paul Garrity (October 24, 2025) — No. 25-10372-DJC (Dkt. 28, D. Mass.)

Summary

United States Attorney Leah B. Foley's letter of October 24, 2025 to defense attorney Paul Garrity sets out the plea agreement of Lonnie Smith Matthews in Criminal No. 25-10372-DJC in the District of Massachusetts. Smith Matthews will plead guilty to every count: two counts of wire fraud, theft of government money, two counts of bank fraud and two counts of money laundering. The parties agree a total offense level of 16, including 12 levels because the loss was more than $250,000 but not more than $550,000, less credit for acceptance of responsibility and no criminal history. The government will recommend the low end of the Guidelines range, 36 months of supervised release, a $700 special assessment, restitution set at sentencing, and a $199,999 forfeiture money judgment equal to the fraud proceeds. Appeal is waived, except for ineffective assistance or misconduct claims.
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U.S. Department of Justice

Leah B. Foley
United States Attorney
District of Massachusetts

Main Reception: (617) 748-3100 John Joseph Moakley United States Courthouse
1 Courthouse Way
Suite 9200
Boston, Massachusetts 02210
October 24, 2025
Paul Garrity
Law Office of Paul Garrity, Esq.
14 Londonderry Road

Londonderry, NH 03053

Re: United States v. Lonnie Smith Matthews
Criminal No. 25-10372-DJC

Dear Mr. Garrity:

The United States Attorney for the District of Massachusetts (the “U.S. Attorney”) and
your client, Lonnie Smith Matthews (“Defendant”), agree as follows, pursuant to Federal Rule of
Criminal Procedure 1 1(c)(1)(B):

1. Change of Plea

Defendant will plead guilty to each count of the Indictment charging him with wire fraud,
in violation of 18 U.S.C. § 1343 (Counts One and Two); theft of government money, in violation
of 18 U.S.C. § 641 (Count Three); bank fraud, in violation of 18 U.S.C. § 1344 (Counts Four and
Five); and money laundering, in violation of 18 U.S.C. § 1956 (Counts Six and Seven). Defendant
admits that Defendant committed the crimes specified in these counts and is in fact guilty of each
one.

2. Penalties

Defendant faces the following maximum penalties per count:

Counts One and Two (18 U.S.C. § 1343): incarceration for 20 years; supervised release
for 3 years; a fine of $250,000, or twice the monetary gain or loss, whichever is greater; a

mandatory special assessment of $100; restitution; and forfeiture to the extent charged in the
Indictment;

Count Three (18 U.S.C. § 641): incarceration for 10 years; supervised release for 3 years;
a fine of $250,000, or twice the monetary gain or loss, whichever is greater; a mandatory special
assessment of $100; restitution; and forfeiture to the extent charged in the Indictment;

Counts Four and Five (18 U.S.C. § 1344): incarceration for 30 years; supervised release
for 5 years; a fine of $1,000,000, or twice the monetary gain or loss, whichever is greater; a
mandatory special assessment of $100; restitution; and forfeiture to the extent charged in the
Indictment; and

Counts Six and Seven (18 U.S.C. § 1956): incarceration for 20 years; supervised release
for 3 years; a fine of $500,000, or twice the value of the property involved transactions that were
the object of the conspiracy, whichever is greater; a mandatory special assessment of $100;
restitution; and forfeiture to the extent charged in the Indictment.

Defendant understands that, if Defendant is not a United States citizen by birth, pleading
guilty may affect Defendant’s immigration status. Defendant agrees to plead guilty regardless of
any potential immigration consequences, even if Defendant’s plea results in being automatically
removed from the United States.

3, Sentencing Guidelines

The parties agree, based on the following calculations, that Defendant’s total “offense
level” under the Guidelines is 16:

All counts charged in the Indictment constitute a single Group pursuant to USSG
§ 3D1.2(d), because the offense level for each count is determined largely on the basis of the total
amount of harm or loss or some other measure of aggregate harm, the offense behavior was
ongoing and continuous in nature and the offense guideline is written to cover such behavior
(USSG §§ 3D1.2(d) and 281.1, Application Note 6).

a) Defendant’s base offense level is the offense level for the underlying offense
from which the laundered funds were derived, that is, bank fraud, because (A)
Defendant committed the underlying offense or would be accountable for the
underlying offense under subsection (a)(1)(A) of § 1B1.3 (Relevant Conduct),
and (B) the offense level for that offense can be determined (USSG

§ 2S1.1(a)(1));

i. Defendant’s base offense level is 7, because Defendant was convicted of an
offense referenced to USSG § 2B1.1; and (B) that offense of conviction has
a statutory maximum term of imprisonment of 20 years or more (USSG
§ 2B1.1(a)(1)); and

ii. Defendant’s offense level is increased by 12, because the offense involved
a loss of more than $250,000 but not more than $550,000 (USSG

§§ 2B1.1(6)1)(G));

b) Defendant’s offense level is increased by 2, because Defendant was convicted
under 18 U.S.C. § 1956 (USSG § 2S1.1(b)(2)(B));
c) Defendant’s offense level is decreased by 3, because Defendant has accepted
responsibility for Defendant’s crimes (USSG § 3E1.1); and

d) Defendant’s offense level is decreased by 2, because Defendant has no criminal
history points (USSG § 4C1.1).

Defendant understands that the Court is not required to follow this calculation or even to
sentence Defendant within the Guidelines and that Defendant may not withdraw Defendant’s
guilty plea if Defendant disagrees with how the Court calculates the Guidelines or with the
sentence the Court imposes.

Defendant also understands that the government will object to any reduction in Defendant’s
sentence based on acceptance of responsibility if: (a) at sentencing, Defendant (directly or through
counsel) indicates that Defendant does not fully accept responsibility for having engaged in the
conduct underlying each of the elements of the crimes to which Defendant is pleading guilty; or
(b) by the time of sentencing, Defendant has committed a new federal or state offense, or has in
any way obstructed justice.

If, after signing this Agreement, Defendant’s criminal history score or Criminal History
Category is reduced, the U.S. Attorney reserves the right to seek an upward departure under the
Guidelines.

Nothing in this Plea Agreement affects the U.S. Attorney’s obligation to provide the Court
and the U.S. Probation Office with accurate and complete information regarding this case.

4, Sentence Recommendation

The U.S. Attorney agrees to recommend the following sentence to the Court:

a) incarceration at the low end of the Guidelines sentencing range as calculated by
the parties;

b) 36 months of supervised release;

c) amandatory special assessment of $700, which Defendant must pay to the Clerk
of the Court by the date of sentencing;

d) restitution in an amount to be determined at sentencing; and
e) forfeiture as set forth in Paragraph 6.
Defendant agrees that all criminal monetary penalties, including special assessment,
restitution, forfeiture, and/or fine imposed shall be due and payable immediately, and further

agrees that any Court-ordered repayment schedule does not preclude further enforcement or
collection by the United States.
5, Waiver of Appellate Rights and Challenges to Conviction or Sentence

Defendant has the right to challenge Defendant’s conviction and sentence on “direct
appeal.” This means that Defendant has the right to ask a higher court (the “appeals court”) to look
at what happened in this case and, if the appeals court finds that the trial court or the parties made
certain mistakes, overturn Defendant’s conviction or sentence, Also, in some instances, Defendant
has the right to file a separate civil lawsuit claiming that serious mistakes were made in this case
and that Defendant’s conviction or sentence should be overturned.

Defendant understands that Defendant has these rights, but now agrees to give them up.
Specifically, Defendant agrees that:

a) Defendant will not challenge Defendant’s conviction on direct appeal or in any
other proceeding, including in a separate civil lawsuit; and

b) Defendant will not challenge Defendant’s sentence, including any court orders
related to forfeiture, restitution, fines or supervised release, on direct appeal or
in any other proceeding, including in a separate civil lawsuit.

Defendant understands that, by agreeing to the above, Defendant is agreeing that
- Defendant’s conviction and sentence will be final when the Court issues a written judgment after
the sentencing hearing in this case. That is, after the Court issues a written judgment, Defendant
will lose the right to appeal or otherwise challenge Defendant’s conviction and sentence, regardless
of whether Defendant later changes Defendant’s mind or finds new information that would have
led Defendant not to agree to give up these rights in the first place.

Defendant is agreeing to give up these rights at least partly in exchange for concessions the
U.S. Attorney is making in this Agreement.

The parties agree that, despite giving up these rights, Defendant keeps the right to later
claim that Defendant’s lawyer rendered ineffective assistance of counsel, or that the prosecutor or
a member of law enforcement involved in the case engaged in misconduct serious enough to entitle
Defendant to have Defendant’s conviction or sentence overturned.

6. Forfeiture

Defendant understands that the Court will, upon acceptance of Defendant’s guilty plea,
enter an order of forfeiture as part of Defendant’s sentence, and that the order of forfeiture may
include assets directly traceable to Defendant’s offense, assets used to facilitate Defendant’s
offense, substitute assets and/or a money judgment equal to the value of the property derived from,
or otherwise involved in, the offense.

The assets to be forfeited specifically include, without limitation, the following:

a. $199,999 in United States currency, to be entered in the form of an Order of
Forfeiture (Money Judgment).
Defendant admits that $199,999 is subject to forfeiture on the grounds that it is equal to the
amount of proceeds the defendant derived from the bank and wire fraud offenses.

Defendant acknowledges and agrees that the amount of the forfeiture money judgment
represents proceeds the Defendant obtained (directly or indirectly) from the crimes to which
Defendant is pleading guilty and that, due at least in part to the acts or omissions of Defendant, the
proceeds or property have been transferred to, or deposited with, a third party, spent, cannot be
located upon exercise of due diligence, placed beyond the jurisdiction of the Court, substantially
diminished in value, or commingled with other property which cannot be divided without
difficulty. Accordingly, Defendant agrees that the United States is entitled to forfeit as “substitute
assets” any other assets of Defendant up to the value of the now missing directly forfeitable assets.

Defendant agrees to consent to the entry of an order of forfeiture for such property and
waives the requirements of Federal Rules of Criminal Procedure 11(b)(1)(J), 32.2, and 43(a)
regarding notice of the forfeiture in the charging instrument, advice regarding the forfeiture at the
change-of-plea hearing, announcement of the forfeiture at sentencing, and incorporation of the
forfeiture in the judgment. Defendant understands and agrees that forfeiture shall not satisfy or
affect any fine, lien, penalty, restitution, cost of imprisonment, tax liability or any other debt owed
to the United States.

- If the U.S. Attorney requests, Defendant shall deliver to the U.S. Attorney within 30 days -
after signing this Plea Agreement a sworn financial statement disclosing all assets in which
Defendant currently has any interest and all assets over which Defendant has exercised control, or
has had any legal or beneficial interest. Defendant further agrees to be deposed with respect to
Defendant’s assets at the request of the U.S. Attorney. Defendant agrees that the United States
Department of Probation may share any financial information about the Defendant with the United
States Attorney’s Office.

Defendant also agrees to waive all constitutional, legal, and equitable challenges (including
direct appeal, habeas corpus, or any other means) to any forfeiture carried out in accordance with
this Plea Agreement.

Defendant hereby waives and releases any claims Defendant may have to any vehicles,
currency, or other personal property seized by the United States, or seized by any state or local law
enforcement agency and turned over to the United States, during the investigation and prosecution
of this case, and consents to the forfeiture of all such assets.

7. Civil Liability

This Plea Agreement does not affect any civil liability, including any tax liability,
Defendant has incurred or may later incur due to Defendant’s criminal conduct and guilty plea to
the charges specified in Paragraph 1 of this Agreement.

8. Breach of Plea Agreement

Defendant understands that if Defendant breaches any provision of this Agreement,
violates any condition of Defendant’s pre-trial release or commits any crime following
Defendant’s execution of this Plea Agreement, Defendant cannot rely upon such conduct to
withdraw Defendant’s guilty plea. Defendant’s conduct, however, would give the U.S. Attorney
the right to be released from the U.S, Attorney’s commitments under this Agreement, to pursue
any charges that were, or are to be, dismissed under this Agreement, and to use against Defendant
any of Defendant’s statements, and any information or materials Defendant provided to the
government during investigation or prosecution of Defendant’s case—even if the parties had
entered any earlier written or oral agreements or understandings about this issue.

Defendant also understands that if Defendant breaches any provision of this Agreement or
engages in any of the aforementioned conduct, Defendant thereby waives any defenses based on
the statute of limitations, constitutional protections against pre-indictment delay, and the Speedy
Trial Act, that Defendant otherwise may have had to any charges based on conduct occurring
before the date of this Agreement.

9, Who is Bound by Plea Agreement

This Agreement is only between Defendant and the U.S. Attorney for the District of
Massachusetts. It does not bind the Attorney General of the United States or any other federal,
state, or local prosecuting authorities.

10. Modifications to Plea Agreement

This Agreement can be modified or supplemented only in a written memorandum signed
by both parties, or through proceedings in open court.

* * *

If this letter accurately reflects the agreement between the U.S. Attorney and Defendant,
please have Defendant sign the Acknowledgment of Plea Agreement below. Please also sign
below as Witness. Return the original of this letter to Assistant U.S. Attorney Kriss Basil.

Sincerely,

LEAH B. FOLEY

United States/Attorney j
By: [ 4 . aN

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Securities, Financial & Cyber Fraud Unit

KRISS BASIL
Assistant U.S. Attorney
ACKNOWLEDGMENT OF PLEA AGREEMENT

I have read this letter and discussed it with my attorney. The letter accurately presents my
agreement with the United States Attorney’s Office for the District of Massachusetts. There are no
unwritten agreements between me and the United States Attorney’s Office, and no United States
government official has made any unwritten promises or representations to me in connection with
my guilty plea. I have received no prior offers to resolve this case.

I understand the crimes I am pleading guilty to, and the maximum penalties for those
crimes. I have discussed the Sentencing Guidelines with my lawyer, and I understand the
sentencing ranges that may apply.

I am satisfied with the legal representation my lawyer has given me, and we have had
enough time to meet and discuss my case. We have discussed the charges against me, possible
defenses I might have, the terms of this Agreement and whether I should go to trial.

I am entering into this Agreement freely and voluntarily and because I am in fact guilty of
the offenses. I believe this Agreement is in my best interest.

LONNIE SMITH MATTHEWS
Defendant

Date: ily dye AL

I certify that Lonnie Smith Matthews has read this Agreement and that we have discussed
what it means. I believe Mr. Smith Matthews understands the Agreement and is entering into it
freely, voluntarily, and knowingly. I also certify that the U.S. Attorney has not extended any other

offers regarding a change of plea in this case.

PAUL GARRITY, ESQ.
Attorney for Defendant
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