A federal court entered a final consent judgment last week against Matthew Motil, the Ohio-based host of "The Cash Flow King" podcast, bringing closure to an SEC enforcement action that began in September 2023. Motil operated a nearly four-year fraud that pulled in more than $11 million from over 60 investors scattered across the United States.

The 42-year-old sold promissory notes he claimed were backed by first-position mortgages on residential properties throughout Ohio. He advertised himself as a self-made real estate entrepreneur who helped "hundreds of investors throughout the world to create massive wealth through real estate" through his website and social media presence.

One House, Twenty Investors

Court documents paint a picture of serial over-leveraging that left investors with worthless paper. In the most extreme case, Motil sold more than $1.3 million worth of notes to at least 20 separate investors, all supposedly secured by a single-family home on Hearthstone Road in Parma, Ohio. He purchased that property in November 2017 for $47,000. Valuation services never appraised it at more than $130,000.

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Similar patterns emerged across multiple properties. A Cleveland home on Leroy Avenue that Motil bought for $51,000 was used to "collateralize" notes worth at least $853,000 to 17 different investors. When he sold his last note on that property in April 2021, he owed investors more than $635,000 against a property valued at no more than $118,600.

The scheme mirrors other real estate frauds that have drawn regulatory scrutiny. In Texas, Justin Kimbrough operated Prosperity Consultants, which promised returns from real estate deals before regulators discovered the $3 million operation was paying existing investors with new money.

Motil rarely recorded the mortgages with county clerks despite promising investors he would do so. This prevented prospective investors from discovering through title searches that properties were already encumbered. He told investors that county clerks were backlogged, buying himself time.

Retirement Funds Diverted to Personal Spending

The SEC's complaint details how Motil spent investor money. Of the $11 million raised during the period from October 2017 through May 2021, more than $3.7 million (33 percent) went to Ponzi payments . Another $1.6 million covered personal expenses.

Those personal expenses included more than $107,000 for a seven-month rental of a lakeside mansion, over $73,000 for courtside seats to Cleveland Cavaliers games, and more than $45,000 to repay student loans. Motil also spent over $14,000 at Starbucks, and nearly $14,000 at pizzerias.

The pattern of diverting funds to luxury spending appears across multiple fraud cases. When investment adviser Brian Swensen died while running a $29 million scheme, investigators discovered he had used client money for real estate purchases, vehicles, and multiple private aircraft

Criminal Sentence, Civil Penalties

The Northern District of Ohio criminal court sentenced Motil to 70 months in prison, 2025, and ordered him to pay restitution of more than $5 million. The parallel SEC civil case resulted in a final consent judgment entered January 13, 2026.

Under the consent judgment, Motil is permanently enjoined from violating securities registration and anti-fraud provisions. He must pay disgorgement of $3 million plus prejudgment interest, though that obligation is deemed satisfied by the criminal restitution order. The court permanently barred Motil from participating in the issuance, purchase, offer, or sale of any security, except for purchasing securities listed on national exchanges for his personal account.

Real estate investment frauds have drawn heightened enforcement attention. The SEC previously sued Florida-based Woodbridge Funds and owner Robert Shapiro over a $1.2 billion Ponzi scheme involving real estate development.