Federal charges allege scheme involving social media marketing, fraud, and bribery in New Jersey projects
A New Jersey real estate influencer and investor has been indicted for allegedly orchestrating a multi-million-dollar Ponzi-like scheme that defrauded dozens of investors, laundered drug-linked proceeds, and involved bribery of a public official, according to the US Department of Justice.
Cesar Humberto Pina, also known as “Flipping NJ,” was charged with two counts of wire fraud, one count of money laundering conspiracy, two counts of money laundering, and one count of bribery. The indictment was returned by a federal grand jury and announced by US Attorney Alina Habba. Pina’s arraignment has not yet been scheduled.
“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,” said US Attorney Alina Habba. “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.”
According to court documents, Pina promoted real estate investment seminars and built a significant social media following through a partnership with a celebrity DJ and influencer. Between 2017 and the present, Pina allegedly solicited millions in investor funds by promising returns of 30% or more within months.
Rather than using the money to purchase, renovate, and resell properties as claimed, authorities said he commingled investor funds and used new capital to repay earlier investors, a classic Ponzi-like structure.
The investigation alleges that Pina defrauded investors across the United States and diverted funds toward unauthorized business and personal expenses. He also laundered money that law enforcement agents posed as drug proceeds as part of a sting operation and allegedly conspired to clean money for known narcotics traffickers.
“Rather than utilize his social media presence for the betterment of society, Mr. Humberto Pina chose to use it to expand his criminal activities,” said DEA New Jersey special agent in charge Cheryl Ortiz. “His actions, along with his willingness to launder money from drug proceeds, is no different than those individuals flooding our streets with illicit and diverted narcotics.”
Read next: Utah Supreme Court blocks lender from stalling lien release
Prosecutors say Pina also bribed a public official in Paterson, New Jersey, offering cash and other benefits in exchange for influence over zoning approvals tied to his “Old School 5” redevelopment project.
The potential penalties are severe. Each wire fraud charge carries up to 20 years in prison and fines of up to $250,000 or twice the value of the fraud. The money laundering and conspiracy charges carry similar prison terms and fines of up to $500,000 or double the amount laundered. The bribery charge includes a maximum sentence of 10 years.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
