SEC Files Charges Against Real Estate Entrepreneur for $11 Million Ponzi Scheme

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The Securities and Exchange Commission has recently filed civil charges against Matthew Motil, a well-known real estate entrepreneur and host of the popular podcast “The Cash Flow King.” According to the SEC’s complaint filed on September 25th in federal court, Motil is accused of masterminding an elaborate $11 million Ponzi scheme that defrauded over 50 investors.

Motil allegedly lured investors by offering low-risk, high-return promissory notes that were supposedly collateralized by first mortgages on homes in Ohio. However, it has been revealed that Motil did not secure the promised first-lien positions and even went as far as selling multiple promissory notes for the same property to multiple investors. This blatant deception allowed him to use funds from new investors to repay earlier ones and finance his extravagant personal expenses, which include indulging in courtside seats at NBA games, costing over $73,000, and dining at numerous pizzerias, racking up a bill of more than $13,900.

Mark Cave, associate director of the SEC’s Division of Enforcement, commented on the investigation, saying, “We allege that Motil used podcasts and social-media platforms to bolster his reputation as an investing expert while fraudulently targeting investors’ hard-earned retirement assets.” Cave added, “We are committed to holding those who prey on others accountable for their unlawful conduct.”

At the time of writing, neither Matthew Motil nor his wife Amy Motil, who is also implicated in the SEC’s complaint, have made any public statements. It remains uncertain whether they have legal representation for this matter. Notably, the lawyer who previously represented Motil in a bankruptcy case confirmed that he is not involved in the SEC investigation.

In addition to the alleged fraud itself, the SEC expressed concern over Motil’s lack of cooperation. Despite actively participating in a separate bankruptcy case, Motil disregarded multiple administrative subpoenas issued by the SEC, demanding testimony and documentation.

The Ponzi scheme orchestrated by Motil is said to have taken place between October 2017 and May 2021. In the words of the SEC’s complaint, “Nearly everything about his scheme was a lie.” This case serves as a reminder of the importance of vigilance when investing and the need for regulatory bodies to actively pursue those who engage in fraudulent activities that harm unsuspecting investors.

Real Estate Investment Scheme Exposed by SEC

Motil, a self-proclaimed real estate investment guru, has come under scrutiny by the Securities and Exchange Commission (SEC) for allegedly running a Ponzi scheme. The agency claims that Motil used social media, his podcast, and website to promote his fraudulent scheme, enticing potential investors with the promise of being a “real estate investing badass!”

Motil specifically targeted individuals who had signed up for his newsletter, sending them emails with enticing offers for “private lending opportunities.” He convinced his victims that their investments would be used to renovate properties and generate profits through reselling, refinancing, or renting. However, the SEC alleges that Motil was using investor funds for personal expenses and making Ponzi-like payments to early investors.

To make matters worse, Motil is accused of forging a notary’s signature and creating counterfeit notary seals on multiple mortgage documents. When confronted with his financial troubles in January 2021, Motil claimed that cash-flow issues arose from banking and tenant payment problems. He apologized for poor communication and promised to build a larger cash reserve.

According to the SEC, Motil spent a significant portion of investor funds on personal luxuries. This includes more than $1 million in personal credit card charges and over $100,000 on a seven-month rental of a lakeside mansion. Additionally, Motil used investor money to repay student loans and enjoy lavish visits to Starbucks. Shockingly, he even transferred more than $400,000 of investor funds to his wife, who may be required to return the money.

In response to these allegations, the SEC has filed a complaint seeking restitution for the defrauded investors, civil money penalties, and other necessary measures. The investigation serves as a reminder to exercise caution when approached by supposed investment experts promising lucrative returns.

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