Cesar Pina used his actual property seminars and social media clout to allegedly orchestrate a nationwide fraud and cash laundering scheme that netted thousands and thousands and included bribing a New Jersey official, federal prosecutors introduced Tuesday (July 15).

The New Jersey actual property promoter, recognized on-line as “Flipping NJ,” was indicted by a federal grand jury on six legal counts, together with wire fraud, cash laundering conspiracy and bribery tied to federally funded applications. According to the U.S. Attorney’s Office, Pina allegedly promised excessive returns to buyers, then used their cash to repay earlier buyers and fund private bills.

“Cesar Pina is alleged to have misappropriated millions of dollars of peoples’ hard-earned money, laundered money for narcotics traffickers, and bribed a politician in furtherance of real estate projects,” U.S. Attorney Alina Habba mentioned. “This multi-year torrent of criminal activity hurt investors around the United States, facilitated the scourge of narcotics trafficking, and undermined confidence in our public officials.”

The indictment accuses Pina of operating a Ponzi-style funding rip-off beginning in 2017, soliciting funds beneath the guise of flipping residential properties in New Jersey and past. He allegedly promised returns of 30 % or extra inside months, however as an alternative used new investor cash to repay earlier backers and canopy unauthorized enterprise and private prices.

Federal brokers say Pina additionally laundered drug cash and took half in a sting operation the place he allegedly cleaned funds that had been represented as narcotics proceeds. He’s additional accused of bribing a Paterson metropolis official to push ahead an actual property mission referred to as “Old School 5,” which was beneath assessment by town’s zoning board.

“Rather than utilize his social media presence for the betterment of society, Mr. Humberto Pina chose to use it to expand his criminal activities,” DEA New Jersey Special Agent in Charge Cheryl Ortiz mentioned. “His actions, along with his willingness to launder money from drugs proceeds, is no different than those individuals flooding our streets with illicit and diverted narcotics.”

The expenses carry steep penalties. Each wire fraud rely may result in as much as 20 years in jail and a $250,000 wonderful. The cash laundering expenses carry the identical jail time period however with fines as much as $500,000. The bribery cost may end in 10 years behind bars and a $250,000 wonderful.

“Under the guise of being an entrepreneur with his clients’ best interests at heart, Cesar Pina allegedly defrauded dozens of investors of millions of dollars,” FBI Special Agent in Charge Stefanie Roddy mentioned. “His alleged actions didn’t stop at fraud but involved bribery, money laundering, and conspiring to launder illicit funds from the sale of drugs.”

The investigation was led by the U.S. Attorney’s Office for the District of New Jersey, the DEA, the FBI, the IRS Criminal Investigation Division and the U.S. Postal Inspection Service. The Franklin Lakes Police Department additionally assisted. The case is a part of an Organized Crime Drug Enforcement Task Force operation.

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