The host of the “Cash Flow King” podcast, which was available on Spotify and YouTube, might be more of a cash clown.
Matthew Motil, who has been hosting the program since releasing his first episode in 2018 until his most recent episode in February 2021, has been charged by the Securities and Exchange Commission for allegedly orchestrating an $11 million Ponzi scheme.
According to a press release from the SEC, Motil defrauded more than 50 investors by convincing them to purchase promissory notes—a written note promising to pay a sum of money by a specific time—to be used as collateral on first mortgages on several homes throughout Ohio.
By doing so, he promised low-risk, quick returns to investors by renovating and reselling the homes they helped him purchase.
Courtesy of YouTube | Matt Motil hosting his podcast.
However, the SEC alleged that Motil engaged in a scam, selling the notes to several investors for the same property. For example, the SEC said Motil raised $1.3 million by selling promissory notes to 20 separate investors for a property he purchased for only $47,000. The home had only received a $130,000 property evaluation.
Motil would then use investor money to pay back others, racking up $3.7 million in Ponzi scheme payments. He also used $1.6 million in investor cash to fund his lavish lifestyle, which included renting a lakeside mansion and paying $400,000 in credit card payments for his wife, Amy Motil. She was named as a relief defendant in the lawsuit.
Motil filed for bankruptcy in March 2022, per CNBC, allegedly to get out of hot water with the SEC and avoid paying back investors.
The SEC charged Motil with violating the registration and antifraud provisions of the Securities Act of 1933 and the antifraud provisions of the Securities Exchange Act of 1934 on Monday in an Ohio court.
While perpetrating his scheme, Motil often boasted and promised people he could make them a “real estate investing badass.”
“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, including, in at least one instance, almost the full balance of an investor’s self-directed IRA,” the Associate Director of the Division of Enforcement, Mark Cave, said in the SEC press release.
“We are committed to holding those who prey on others accountable for their unlawful conduct.”