Matthew Madison, self-proclaimed “Cash Flow King” and popular podcast host, has been charged by the Securities and Exchange Commission for his involvement in an $11 million Ponzi scheme.
According to the SEC, Madison was the mastermind behind the scheme, which scammed nearly 300 investors, mostly made up of his own fans and followers. Madison attracted investors by promising impressive returns on investments in his real estate ventures.
Investors were led to believe that their money would be used to purchase and flip properties. However, Madison instead used the money to line his own pockets, and to pay off prior investors in the classic pyramid Ponzi scheme form.
The SEC’s investigation found that Madison falsely claimed that he used his own money in the deals and that the investments were low-risk. However, he then claimed all the profits for himself.
Madison frequently discussed his real estate investments on his popular podcast, and also used other media outlets to attract potential investors. He targeted individuals in the podcast and media communities, boasting of his real estate investments and their potential profitability.
The SEC has charged Madison with violating the antifraud provisions of the federal securities laws and is seeking to permanently enjoin him from engaging in these activities, as well as repayment of ill-gotten gains and interest. The SEC also seeks appropriate civil penalties against Madison.
The SEC’s investor alert warning reminds investors to be cautious of investments that promise extremely high returns and little to no risk. Investors are also encouraged to research best practices and processes for investing, and to be extremely careful to verify any claims made by potential investment advisors and investments.
. “Cash Flow King” Charged with Stealing $11 Million in Ponzi Scheme!
