An Ohio-based podcast host, Matt Motil, is accused by the U.S. Securities and Exchange Commission (SEC) of fraudulently raising approximately $11 million from more than 50 investors in a Ponzi scheme involving notes purportedly backed by residential properties. Branding himself as the “Cash Flow King” on social media, Motil allegedly issued “promissory notes” backed by properties.
The SEC has accused Matt Motil of misleading investors by offering them high-return, low-risk promissory notes, claiming first mortgages on Ohio properties backed them. Motil advertised these investments on his website and podcast, emphasizing their safety due to their “first lien position” on the real estate. He assured investors that their returns would come from the profits of renovating and selling or renting the properties.
However, the SEC alleges that Motil didn’t secure the promised first lien positions and often sold multiple notes, supposedly backed by the same property, to different investors. In one case, he reportedly sold over $1 million worth of notes, all allegedly backed by a single property he bought for $47,000. Instead of using the funds for property renovation, Motil is accused of using them for Ponzi-style payments and lavish personal expenses, including NBA tickets and significant credit card payments for his wife, Amy Motil, who is also named in the complaint.
Despite filing for bankruptcy in March 2022, Motil has been avoiding the SEC’s subpoenas and continued promoting his scheme online. The SEC alleges that Motil and his wife, Amy, benefited significantly from this scheme, with Motil even resorting to forgery to perpetuate the fraud. Federal authorities are increasing their focus on such scammers, with the Federal Trade Commission (FTC) recently charging an Amazon e-commerce company for similar fraudulent activities.