SEC Charges "Cash Flow King" Host Matthew Motil with Fraudulent Ponzi Scheme

The Securities and Exchange Commission has charged Matthew Motil for fraudulently raising over $11 million from investors in a Ponzi scheme. Motil ran a podcast called “The Cash Flow King” which he used to lure potential investors into believing their investments were safe and backed by first lien positions on residential properties. Instead, Motil allegedly used investor money to make Ponzi payments to previous investors and for his own personal expenses such as rent for a lakeside mansion and NBA tickets. The SEC’s complaint alleges that Motil violated the registration and antifraud provisions of the Securities Act of 1933 as well as the antifraud provisions of the Securities Exchange Act of 1934. The SEC is seeking injunctive relief, disgorgement plus prejudgment interest, civil penalties, and an officer and director bar. The SEC acknowledges the assistance of the U.S. Trustee’s Office, the U.S. Attorney’s Office for the Northern District of Ohio, and the Ohio Division of Securities in its investigation.