His law license was revoked by the Virginia State Bar last year after he admitted disbursing more than $2.8 million in wind-down money in 2019 to himself and another lawyer that was not to be disbursed until this year.

Aware that scrutiny would expose his criminal conduct, prosecutors said, Matson engaged in obstructive conduct to conceal his misdeeds that included: “filing letters with the Bankruptcy Court that contained deliberate misrepresentations; attempting to mislead and/or pressure other individuals; making misrepresentations to the U.S. Trustee’s Office; and appearing before the Bankruptcy Court to personally deliver additional misrepresentations to the Court.”

They complained to Gibney that, “Over the course of a four-year period, the defendant designed and executed a multi-step and multifaceted scheme to defraud the LFG Liquidation Trust of as much money as possible ... diverting the bulk of those siphoned-off or embezzled funds into bank accounts that he controlled; transferring some to his associates; and directing the remainder to his law firm to settle a personal debt.

“The defendant used different methods to complete his draining of the Trust account — embezzling some funds by re-directing checks intended for the Trust, drawing duplicative payments from the Trust, and depleting the Trust’s wind down budget with payments to himself and others,” the U.S. attorney’s office wrote.