The Securities and Exchange Commission has filed charges against Matthew Motil, host of the podcast The Cash Flow King, for allegedly orchestrating a Ponzi scheme that defrauded investors out of approximately $11 million. According to the SEC’s complaint, Motil, a resident of North Olmsted, Ohio, lured investors with promises of low-risk, high-return investments backed by first mortgages on Ohio-based residential properties.
The SEC’s lawsuit, filed in the U.S. District Court for the Northern District of Ohio, accuses Motil of violating various securities laws. The commission is seeking injunctive relief, disgorgement, civil penalties, and an officer and director bar against him.
The complaint alleges that Motil failed to secure the promised first lien positions and often sold multiple promissory notes claiming to be backed by the same property to different investors. Motil allegedly misused the investor funds for personal expenses, including renting a lakeside mansion and purchasing NBA courtside season tickets. His wife, Amy Motil, is named as a relief defendant in the case.
SEC Associate Director of the Division of Enforcement Mark Cave stated, “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. We are committed to holding those who prey on others accountable for their unlawful conduct.”
