The host of the “Money Movement King” podcast, which was accessible on Spotify and YouTube, is perhaps extra of a money clown.
Matthew Motil, who has been internet hosting this system since releasing his first episode in 2018 till his most up-to-date episode in February 2021, has been charged by the Securities and Trade Fee for allegedly orchestrating an $11 million Ponzi scheme.
In line with a press launch from the SEC, Motil defrauded greater than 50 traders by convincing them to buy promissory notes—a written notice promising to pay a sum of cash by a selected time—for use as collateral on first mortgages on a number of houses all through Ohio.
By doing so, he promised low-risk, fast returns to traders by renovating and reselling the houses they helped him buy.
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Courtesy of YouTube | Matt Motil internet hosting his podcast.
Nevertheless, the SEC alleged that Motil engaged in a rip-off, promoting the notes to a number of traders for a similar property. For instance, the SEC stated Motil raised $1.3 million by promoting promissory notes to twenty separate traders for a property he bought for under $47,000. The house had solely acquired a $130,000 property analysis.
Motil would then use investor cash to pay again others, racking up $3.7 million in Ponzi scheme funds. He additionally used $1.6 million in investor money to fund his lavish life-style, which included renting a lakeside mansion and paying $400,000 in bank card funds for his spouse, Amy Motil. She was named as a aid defendant within the lawsuit.
Motil filed for chapter in March 2022, per CNBC, allegedly to get out of sizzling water with the SEC and keep away from paying again traders.
The SEC charged Motil with violating the registration and antifraud provisions of the Securities Act of 1933 and the antifraud provisions of the Securities Trade Act of 1934 on Monday in an Ohio court docket.
Whereas perpetrating his scheme, Motil usually boasted and promised individuals he may make them a “actual property investing badass.”
“We allege that Motil used podcasts and social media platforms to bolster his repute as an investing skilled whereas fraudulently focusing on traders’ hard-earned retirement belongings, together with, in at the very least one occasion, nearly the complete stability of an investor’s self-directed IRA,” the Affiliate Director of the Division of Enforcement, Mark Cave, stated within the SEC press launch.
“We’re dedicated to holding those that prey on others accountable for his or her illegal conduct.”