A New Jersey real estate investor who gained a social media following for his house flipping advice was indicted by a federal jury for creating a multimillion-dollar Ponzi-like investment fraud scheme.
According to documents filed in this case and statements made in court, Cesar Humberto Pina, also known as “Flipping NJ,” gained influencer status through a series of real estate seminars conducted around the country. Starting in at least 2017, Pina began accepting investments from individual investors for the alleged purchase, remodel, and sale of specific real estate properties in New Jersey and other states. To induce investors, Pina often promised 30% or higher returns on investments within four to five months.
However, Pina commingled and misappropriated investors’ money, including by using new investor funds to pay off prior investors in a Ponzi-like scheme and spending investor funds on unauthorized business and personal expenditures. As a result, Pina defrauded dozens of investors of millions of dollars.
Pina also conspired to launder illicit funds, including from the sale of controlled substances, for various individuals he knew were engaged in criminal activities. Pina further laundered money that an individual acting at the direction of law enforcement represented was drug proceeds as part of a sting operation. He was also found to have bribed an elected official of Paterson, New Jersey in connection with l;ocal real estate-related projects.
Pina was charged by criminal indictment with two counts of wire fraud, one count of money laundering conspiracy, two counts of money laundering, and one count of bribery concerning programs receiving federal funds. The charges of wire fraud each carry a maximum penalty of twenty years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that any persons derived from the offense or of any pecuniary loss sustained by any victims of the offense, whichever is greatest. The charges of money laundering conspiracy and money laundering each carry a maximum penalty of twenty years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater.
Last week, Pina’s wife, Jennifer Iturralde Pina, was indicted for destruction of records after she destroyed her husband’s cell phone that was being sought by federal agents investigating into her husband’s case.
Photo courtesy of the Flipping NJ Instagram page
