The Securities and Exchange Commission has charged Matthew Motil with allegations he operated a Ponzi like scam that pilfered $11 million from 50 investors. Motil, based in North Olmstead, Ohio, ran a podcast called “The Cash Flow King.”
According to the SEC’s complaint, Motil promoted short-term, low-risk, and high-return promissory notes supposedly fully collateralized by first mortgages on residential real estate located in Ohio. The complaint states that “nearly everything about his scheme was lie”
While claiming that the notes were fully collateralized by property, Motli apparently issued promissory notes secured by the same property multiple times.
To quote the complaint:
“In one instance, Motil obtained over $1.3 million from at least twenty separate investors, issuing at least twenty notes “secured” by one single-family home that was purchased for $47,000 and never valued at more than $130,000. Despite promising many investors that he would record their mortgages, Motil failed to do so. Ultimately, Motil used investor funds to (1) make over $3.7 million in Ponzi payments; (2) spend over $1.6 million on personal expenses; (3) divert over $900,000 of investors’ money to other businesses unrelated to real estate, and (4) route hundreds of thousands more to his wife, Amy Doubrava Motil (“Amy Motil” or “Relief Defendant”). Motil intentionally or recklessly failed to disclose any of this to his investors.”
The complaint continues to claim that Motil operated via several entities, including North Shore Equity Management or the Marie Paul Company or North Shore Equity Sales as well as other LLCs raising funds from investors across the US.
The complaint outlines some of the personal expenses Motil paid with investor money including:
- over $1,000,000 in personal credit card charges,
- over $107,000 on a seven-month rental of a lakeside mansion;
- over $73,000 for courtside seats to the Cleveland Cavaliers;
- over $45,000 to repay student loans;
- over $37,000 on purchases from Best Buy;
- over $23,000 on “Leeny’s Lean Body”;
- over $22,000 on iTunes,
- over $14,000 at Starbucks;
- over $13,900 at numerous pizzerias;
- $58,000 in cash withdrawals.
Motil filed for bankruptcy in 2022.
Mark Cave, Associate Director of the Division of Enforcement, stated:
“We are committed to holding those who prey on others accountable for their unlawful conduct.”
The SEC seeks injunctive relief, disgorgement plus prejudgment interest, civil money penalties, and an officer and director bar.