An Ohio podcast host is facing allegations of running an $11 million Ponzi scheme that deceived more than 50 investors with false promises of transforming them into real estate investment experts, according to the US Securities and Exchange Commission (SEC), as reported by CNBC.
Mott Motil, who dubbed himself the 'Cash Flow King', issued "promissory notes" supposedly backed by Ohio properties with "first mortgages" on the asset.
In reality, the SEC alleges that almost every aspect of Motil's operation was a fabrication.
Motil managed to extract over $1 million from 20 investors for one single-family home valued at no more than $130,000.
Alleged victims came from diverse backgrounds, including a cancer researcher and an active-duty US armed forces officer.
Despite filing for bankruptcy in March 2022, Motil allegedly evaded the SEC's administrative subpoenas and continued to attract investors through social media and his website.
The SEC also claims that Motil and his wife, Amy, profited substantially from the scheme. Motil asserted that funds from the promissory notes would finance property renovations and resales, a practice known as "flipping".
Motil's fraudulent activities extended to forging signatures and misusing a notary's seal, constituting a criminal offence in Ohio.
He attempted to discharge his debt to investors through bankruptcy, but this move was contested by the US Trustee.
This case exemplifies increased regulatory scrutiny on smaller-scale fraudsters causing significant financial harm to investors.
Earlier, the Federal Trade Commission (FTC) pursued civil charges against an Amazon e-commerce "automation" company for defrauding investors of millions, highlighting ongoing efforts to protect the public from financial scams.