The fallout from a massive real estate investment fraud continues as Matthew Motil has been sentenced to federal prison for orchestrating a scheme that devastated dozens of investors. Branding himself as the “Cash Flow King,” Motil utilized a popular podcast and social media presence to solicit millions for real estate deals that were later revealed to be a classic Ponzi scheme.
If you or someone you know has suffered significant investment losses working with Matthew Motil or another real estate investment firm, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in ponzi scheme cases and will help to guide you through the process with a free and confidential consultation to determine whether your losses are the result of actionable misconduct.
Inside the Matthew Motil Sentencing: How the “Cash Flow King” Built Credibility and Misused “Secured” Notes
On July 18, 2025, U.S. District Court Judge Donald C. Nugent sentenced Matthew Motil, 45, of North Olmsted, Ohio, to 70 months in federal prison. The sentencing follows Motil’s guilty plea on September 5, 2024, to charges of securities fraud and wire fraud .
Important Points Regarding the Fraudulent Scheme:
- Operational Period: Motil operated several companies in Northeast Ohio from October 2017 to March 2022.
- The Hook: He used his podcast, “The Cash Flow King,” and his book, “Man on Fire,” to position himself as a real estate expert.
- The Promise: Investors were promised passive income through promissory notes that Motil claimed were secured by first mortgages on residential properties.
- The Deception: Unbeknownst to the victims, Motil used the same properties repeatedly to secure funds from multiple people.
- Recycled Collateral: In one instance, Motil allegedly sold more than $1 million in notes to 20 different investors, all purportedly backed by a single property he purchased for only $47,000.
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Investor Fallout and Legal Consequences Expand After Matthew Motil Sentencing
The U.S. Attorney’s Office for the Northern District of Ohio and the SEC detailed how Motil manipulated trust to fund an extravagant lifestyle. While victims believed their money was renovating Ohio homes, the funds were diverted to Motil’s personal expenses.
Misuse of Investor Funds Included:
- Leasing a large luxury home on Lake Erie.
- Purchasing courtside season tickets for Cleveland Cavaliers NBA games.
- Making $400,000 in credit card payments for his wife, Amy Motil (named as a relief defendant by the SEC).
- Financially sustaining his personal fitness businesses.
The human impact of the Matthew Motil Ponzi Scheme was severe. The scheme took in over $7.3 million (with some SEC estimates reaching $11 million) from at least 63 victims. Among them was “Investor A,” who lost over $577,000—virtually their entire life savings. Other victims included a cancer researcher in Florida and a service member being deployed to Afghanistan.
In addition to his prison term, Motil was ordered to serve three years of supervised release and pay $5,085,247.08 in restitution.
Key Laws and Duties Breached in Real Estate Investment Fraud Cases
The actions taken by Matthew Motil represent significant violations of federal and state securities laws designed to protect the public from predatory practices.
- Antifraud Violations: The SEC charged Motil with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.
- Registration Requirements: The complaint also alleged violations of Sections 5(a) and 5(c) regarding the unregistered offer and sale of securities.
- Fiduciary and Disclosure Failures: By misrepresenting the status of mortgages and failing to disclose the “recycled” nature of the collateral, Motil breached the fundamental duty of truthfulness required in financial offerings.
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How to Respond and Pursue Financial Recovery from Ponzi Schemes
If you suspect you have been a victim of real estate investment fraud, taking swift action is critical to preserving your rights.
- Gather Documentation: Collect all promissory notes, offering materials, emails, and bank records related to your investment.
- Verify Information: Use tools like IAPD or FINRA’s BrokerCheck to verify the registration status of any advisor.
- Report Misconduct: Notify the SEC, FINRA , or state regulators like the Ohio Division of Securities.
- Consult Legal Counsel: An experienced securities fraud lawyer can help you evaluate your options for recovery through arbitration or litigation.
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Meyer Wilson Supports Victims of the Matthew Motil Ponzi Scheme with Clear Paths to Justice
At Meyer Wilson Werning , we focus on representing individuals who have suffered losses due to investment fraud and supervisory failures. The Matthew Motil case highlights how even “expert” personas can be used to hide a Ponzi scheme.
If you lost money in the “Cash Flow King” scheme or any other fraudulent investment, contact us today for a free and confidential consultation. Our team has recovered hundreds of millions of dollars for clients and is dedicated to holding responsible parties accountable.
Frequently Asked Questions
What Matthew Motil sentencing details matter most for victims?
The court ordered Motil to pay over $5 million in restitution. While criminal restitution is one path, victims often pursue parallel civil claims or arbitration against any firms or entities that may have facilitated or failed to supervise the sale of these fraudulent notes.
How did the “Cash Flow King” branding help enable the scheme?
Motil used the “Cash Flow King” podcast, social media, and his book “Man on Fire” to build an image of success and expertise. This “affinity” or authority-based trust often makes investors less likely to conduct independent due diligence on the underlying assets.
What are the common red flags of a real estate Ponzi scheme?
Key red flags include promises of guaranteed high returns with low risk, a lack of transparent third-party financial audits, and delays in providing recorded mortgage documents or title insurance.
Can I recover losses if the perpetrator is in prison?
Yes. While the criminal case focuses on punishment and restitution, investors may have separate legal claims against other parties—such as brokerage firms, banks, or advisors—who may have been negligent or complicit in the fraud.
Recovering Losses Caused by Investment Misconduct.
