Matthew Motil, the host of the podcast “The Cash Flow King” has been charged with perpetrating an $11 million fraudulent real estate investment scam, the US Securities and Exchange Commission (SEC) announced in a news release.
The SEC complaint alleges Motil defrauded investors with promises of “low-risk, high-return promissory notes purportedly collateralized by first mortgages on homes located throughout Ohio.” Motil promoted the investments on his website and on his podcast, where he assured the investments he was offering were safe and backed by a “first lien position” on the underlying real estate assets, it was stated.
Motil told investors they would be paid returns on investments from profits gained from renovating, reselling, refinancing, and renting the properties, it was stated. However, according to the complaint, he did not secure first lien positions for the investors and regularly sent out promissory notes to multiple investors he claimed to be secured by the same property. He allegedly used the funds to make Ponzi payments to earlier investors and spent some on courtside NBA tickets, a lakefront mansion rental, and other personal expenses, including credit card charges, repaying student loans, and cash withdrawals.