SEC tracks down cash flow king podcast host $11 million Ponzi scheme
The Securities and Exchange Commission today accused Matthew Motil, host of the podcast "The Cash Flow King," of fraudulently raising about $11 million.。
The Securities and Exchange Commission (SEC) today accused podcast "The Cash Flow King" host Matthew Motil of fraudulently raising about $11 million from more than 50 investors in a Ponzi scheme involving notes allegedly backed by residential properties.。
According to the SEC's allegations, Mortier of North Olmsted, Ohio, defrauded investors by promising them low-risk, high-return promissory notes that claimed to be secured by first mortgages on homes across Ohio。The SEC complaint alleges that Mortier advertises these investments on its website, inviting potential investors to "become a real estate investment master!," and in his own podcast assures investors that the investments he offers are safe and secured by a "first lien status" on the underlying real estate assets.。
Mortier told investors he would pay investors a return on their investment from profits from renovating, reselling, refinancing and renting properties, the SEC charges said.。However, as the complaint alleges, Mortier did not actually obtain a first lien for the investor as promised, but often sold multiple promissory notes to multiple investors that he claimed were secured against the same property。
At one point, Mortier allegedly sold more than $1 million in promissory notes to 20 investors, each of which he allegedly sold at 4.The same property purchased for $70,000 is mortgaged.。Instead of renovating the properties, Mortier is said to have used the investor's money to pay former investors in a Ponzi scheme and used it for his own lavish personal expenses, including renting a lakeside mansion, buying courtside season tickets to NBA games, and paying $400,000 in credit card payments for his wife Amy Motil, who is listed as a defendant in the relief.。
The SEC filed suit in U.S. District Court for the Northern District of Ohio alleging that Mortier violated the registration and anti-fraud provisions of the Securities Act of 1933 and the anti-fraud provisions of the Securities Exchange Act of 1934.。The complaint seeks injunctive relief, forfeiture of illegal gains and advance interest, civil penalties, and prohibition from acting as an executive and director.。
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