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The Securities and Change Fee on Monday charged the host of the podcast “The Money Stream King” with fraudulently elevating about $11 million from over 50 traders in a Ponzi scheme involving notes that had been purportedly backed by residential properties.
In accordance with the SEC’s grievance, Matthew Motil, of North Olmsted, Ohio, defrauded traders by promising them low-risk, high-return promissory notes purportedly collateralized by first mortgages on properties all through Ohio.
Why it issues: Retirees are at explicit threat of seeing their life financial savings and retirement accounts worn out by scams.
Motil promoted the investments on his web site, inviting potential traders to “be an actual property investing badass!” On his podcast, he promised traders that the investments he supplied had been secure and backed by a “first lien place” on the underlying actual property property, the grievance mentioned.
What to know: Motil advised traders he would pay returns on their investments from earnings made by renovating, reselling, refinancing and renting the properties.
The grievance alleges, nevertheless, that Motil didn’t actually safe first lien positions for the traders as promised and he frequently bought a number of promissory notes he claimed had been secured by the identical property to a number of traders.
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