An Ohio podcast host is facing allegations of running an $11 million Ponzi scheme that defrauded over 50 investors, as reported by the U.S. Securities and Exchange Commission (SEC). The host, Matt Motil, promoted himself as the “Cash Flow King” on social media and claimed to teach investors how to profit from rental real estate investments.
According to the SEC’s complaint, Motil issued “promissory notes” to investors, which he claimed were fully collateralized by Ohio properties. He further misled investors by suggesting that these notes were secured by “first mortgages” on properties, indicating that no other investors had superior claims. However, the SEC alleges that “nearly everything about his scheme was a lie.”
In one instance, Motil reportedly received over $1 million from 20 investors for a single-family home valued at no more than $130,000. The victims of the scheme included a cancer researcher and an active-duty U.S. armed forces officer.
Motil filed for bankruptcy in Ohio in March 2022, but the SEC claims that he has been evading administrative subpoenas since then while continuing to attract investors through social media and his website.
The SEC also alleges that Motil and his wife, Amy, profited significantly from the scheme. Motil claimed that the funds from the promissory notes would be used for renovating and reselling properties.
Additionally, Motil is accused of forging signatures and misusing a notary’s seal, which is a criminal offense in Ohio. He attempted to discharge the money he owed to investors through bankruptcy proceedings, but his case has been contested by the U.S. Trustee.
This case highlights the increased regulatory scrutiny on smaller-scale fraudsters who cause substantial financial harm to investors and the public. Federal agencies are actively pursuing cases against individuals and entities involved in fraudulent schemes.