Matthew Thomas Onofrio, a Minnesota real estate investor who previously worked as a nurse anesthetist, was sentenced to 36 months in federal prison for carrying out a $420 million bank fraud scheme.
According to the charges against him, Onofrio used online professional networking groups and the “Bigger Pockets” podcast to promote himself, leveraging those platforms to create a reputation as a real estate expert. Onofrio devised a real estate investment program whereby he would enter into purchase agreements for commercial properties and assign them to novice “investors” at highly inflated prices. Onofrio then coached his investors to lie to banks to obtain loans they could not afford based on false information.
However, Onofrio’s investors lacked the funds (typically, 30% of the purchase price) that was necessary to purchase the multi-million-dollar properties that Onofrio offered. To solve this problem, Onofrio advised his investors on how to defraud the banks. When the lending banks requested proof of funds, Onofrio temporarily wired the money into his investors’ bank accounts, making it appear they had the money. Onofrio would also loan money to his investors to cover the down payment but would not include the loans on the investors’ personal financial statements or record the promissory notes as a second mortgage on the property to keep it hidden from the banks.
Between 2020 and 2022, Onofrio completed 68 deals involving $420 million in fraudulently obtained bank loans. Although many of Onofrio’s investors stopped paying on their promissory notes following Onofrio’s indictment in this case, Onofrio netted at least $35 million from his fraudulent scheme before being caught.
In addition to his prison term, Onofrio was sentenced to two years of supervised release, and ordered him to play $5.3 million in restitution.
What is it with Minnesota and fraud lately…must be the water up there 🙂
Who says “Crime doesn’t pay!!?!?!)
This is perfect example of why banks and other businesses have imposed these verification codes on all kinds of transactions for the 97% of us that are honest. Which is just a waste of time and inconvenience to the general public. 36 months in jail is too short for this crook!!!!
Well, its seems that the federal government will prosecute unethical and crooked businessmen in Minnesota. When will the Feds prosecute state and officials along with private Minnesota citizens for theft, maleficence and manipulation of the welfare and Medicaid system? You could fill a domed stadium with as many crooks there are just in that state alone.
Another fine example of super bad behavior. What is with these people?
If all he had to pay is $5,000,000. in restitution, what happens to the other $30,000,000.????
Does he have enough left over to buy a Trump Pardon? He should fit right in with those guys.