{"id":86097,"date":"2023-10-05T01:23:06","date_gmt":"2023-10-05T05:23:06","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=86097"},"modified":"2023-10-05T01:32:05","modified_gmt":"2023-10-05T05:32:05","slug":"cash-flow-king-podcast-host-charged-with-perpetrating-11-million-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2023\/cash-flow-king-podcast-host-charged-with-perpetrating-11-million-ponzi-scheme.html","title":{"rendered":"Cash Flow King Podcast Host Charged with Perpetrating $11 Million Ponzi Scheme"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has charged <strong>Matthew Motil,<\/strong> host of the podcast, \u201c<strong>The Cash Flow King,\u201d<\/strong> for fraudulently raising approximately <strong>$11 million<\/strong> from more than 50 investors in a Ponzi scheme involving notes that were purportedly backed by residential properties.<\/p>\n\n\n\n<p><em><strong>According to the SEC\u2019s complaint, Motil, of North Olmsted, Ohio, defrauded investors with promises of low-risk, high-return promissory notes purportedly collateralized by first mortgages on homes located throughout Ohio. <\/strong><\/em><\/p>\n\n\n\n<p>The SEC\u2019s complaint alleges that Motil promoted the investments on his website, inviting potential investors to \u201cbe a real estate investing badass!,\u201d and on his podcast, where he assured investors that the investments he offered were safe and backed by a \u201cfirst lien position\u201d on the underlying real estate assets. According to the SEC\u2019s complaint, Motil told investors that he would pay the investors returns on their investments from profits from renovating, reselling, refinancing, and renting the properties. As the complaint alleges, however, Motil did not in fact secure first lien positions for the investors as promised and regularly sold multiple promissory notes he claimed were secured by the same property to multiple investors. In one instance, Motil allegedly sold more than $1 million of promissory notes to 20 investors, each note supposedly collateralized by the same property he had acquired for $47,000. Rather than renovate the properties, Motil allegedly used investor money to make Ponzi payments to previous investors and for his own extravagant personal expenses, including to rent a lakeside mansion, purchase courtside season tickets to NBA games, and make $400,000 in credit card payments for his wife, Amy Motil, who is named as a relief defendant.<\/p>\n\n\n\n<p>The SEC\u2019s complaint, filed in the federal District Court for the Northern District of Ohio, charges Motil with violating Sections 5(a), and (c) and 17(a) of the Securities Act of 1933, [15 U.S.C. \u00a7\u00a7 77e(a), (c), and \u00a7 77q(a)]; and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, [15 U.S.C. \u00a7 78j(b) and 17 C.F.R. \u00a7240.10b?5]. The complaint seeks injunctive relief, disgorgement plus prejudgment interest, civil money penalties, and an officer-and-director bar. The SEC\u2019s Office of Investor Education and Advocacy has issued an<a href=\"https:\/\/www.sec.gov\/investor\/alerts\/sdira\">Investor Alert<\/a> with tips on how investors can avoid become a victim of fraud in self-directed IRAs<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has charged Matthew Motil, host of the podcast, \u201cThe Cash Flow King,\u201d for fraudulently raising approximately $11 million from more than 50 investors in a Ponzi scheme involving notes that were purportedly backed by [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-86097","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=86097"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86097\/revisions"}],"predecessor-version":[{"id":86098,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86097\/revisions\/86098"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=86097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=86097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=86097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}