Florida Investors Among those Affected By Ponzi Scheme
On September 25th, 2023, the Securities and Exchange Commission (SEC) announced securities fraud charges against Matthew Motil—a podcaster who self-labeled as “The Cash Flow King.” Mr. Motil stands accused of fraudulently raising $11 million from more than 50 different investors, including several investors in Florida. The SEC alleges that Mr. Motil was operating a Ponzi scheme. Here, our Miami Ponzi scheme attorney provides an overview of the allegations.
Background: SEC Alleges Matthew Motil Operated Real Estate Ponzi Scheme
Matthew Motil is based in Ohio. He raised money from investors nationwide, including in Florida, to invest in a residential real estate business that he operated. Mr. Motil promised investors low-risk and high-returns with promissory notes that were purportedly backed by mortgages on residential real estate holdings in his home state of Ohio. In total, Mr. Motil raised more than $11 million from more than 50 investors.
However, the SEC contends that the mortgage positions were not actually secured as promised by Mr. Motil. Instead, investigators contend that Mr. Motil sold multiple promissory notes (securities) for the same underlying property. The funds that he took in from investors were supposed to be used for renovations. Instead, the SEC alleges that Mr. Motil used investor funds to make Ponzi-like payments to keep the scheme afloat. The SEC also alleges that Mr. Motil siphoned off hundreds of thousands of dollars of investor funds.
An Example of the Ponzi Scheme Fraud (Florida Investor)
Within its securities fraud complaint, the SEC uses the example of an investor from Florida. Referred to simply as “Investor C” in the complaint, the Florida resident made an initial $80,000 investment with Matthew Motil. That investor was promised a 15 percent annual return. As represented to the investor, that $80,000 investment was being used to renovate a specific residential property in Ohio. However, the SEC alleges that Mr. Motil took that $80,000 and used it to make Ponzi-like payments to other investors. Investor C received three $1,000 payments back after making the initial investment. However, in the Spring of 2021, the payments stopped. The initial $80,000 payment was not returned as a “balloon payment” as promised.
SEC Seeking a Full Range of Penalties Against Alleged Ponzi Schemer
The SEC is charging Matthew Motil of Ohio with violations of both the registration requirements and the antifraud provision of federal securities law. The agency is seeking the full range of available civil penalties, including disgorgement of ill-gotten proceeds, payment of restitution, payment of civil financial penalties, an injunction to shut-down the Ponzi scheme, and a permanent officer and director bar against Mr. Motil.
Contact Our Miami, FL Ponzi Scheme Attorney Today
At Carlson & Associates, P.A., our Miami Ponzi scheme attorneys advocate tirelessly to help investors secure the maximum recovery. If you suffered damages in a Ponzi scheme, we are here to protect your rights and interests. Contact us today for your confidential case evaluation. From our Miami office, we handle Ponzi scheme cases in Florida and throughout the surrounding area.