On October 18, 2023, Cesar Pina, a business partner of The Breakfast Club co-host DJ Envy (whose real name is RaaShaun Casey), was arrested on a federal wire fraud charge in an alleged Ponzi-like real estate scheme. According to prosecutors, Pina bilked investors in his New Jersey home flipping scheme out of millions of dollars with false promises of huge returns.
Pina, who also goes by the moniker “Flipping NJ,” appeared regularly on the popular Breakfast Club morning radio show, hosted by DJ Envy and Charlemagne Tha God. He often bragged about his success in real estate and encouraged listeners to invest in his schemes.
According to the indictment, Pina lured investors into his scheme by promising them guaranteed returns of up to 20% on their investment. He claimed that he would use the money to buy and flip properties in New Jersey, but in reality, he used the money to pay off his personal debts and fund his lavish lifestyle.
Pina’s scheme began to unravel in 2022, when he started to have difficulty paying back his investors. He began to make excuses, such as claiming that the housing market was down or that he was having trouble finding deals. However, many investors eventually realized that they had been scammed and filed complaints with the authorities.
In April 2023, the FBI raided Pina’s home and office. They seized a number of documents and electronic devices, which are now being used as evidence in the case. As part of the probe, federal agents reportedly raided the offices of iHeartMedia and seized electronic devices.
Pina is scheduled to appear in court on October 26, 2023. If convicted, he faces up to 20 years in prison.
Impact on DJ Envy
DJ Envy has not yet commented on Pina’s arrest. However, it is likely to have a significant impact on his career. Pina was a close friend and business partner, and he appeared regularly on The Breakfast Club.
It is also possible that Envy could be implicated in the scheme. Prosecutors have not yet said whether they are investigating Envy’s involvement. However, Envy has admitted to promoting Pina’s investment schemes on his radio show and to his high-profile connections.
Videos have been circulating on social media showing DJ Envy admit that he proposed the idea to Joe Budden, who eventually turned him down. Joe Budden admitted on his podcast that he felt Envy’s proposition sounded “fishy”.
Envy previously denied any knowledge of the fraud, saying on his radio show: ‘Now the reasons why I did this seminars is because I wanted to uplift my community.
‘I wanted to teach my community about real estate, things that I didn’t know when I was first buying my first home. I wanted to teach our community about investing and in generational wealth,’ he added.
If Envy is found to have been involved in the scheme, he could face criminal charges and could also be sued by investors who lost money.
Implications for the Real Estate Industry
Pina’s arrest is a reminder that there are still people who are willing to scam investors in the real estate industry. It is important for investors to do their research before investing in any real estate scheme.
Investors should be wary of any investment that promises guaranteed returns. There is no such thing as a guaranteed investment, and anyone who promises you one is likely trying to scam you.
Investors should also be wary of investments that are not properly registered with the Securities and Exchange Commission (SEC). The SEC requires all investment offerings to be registered, unless they are exempt. If an investment is not registered with the SEC, it is likely a scam.
If you are considering investing in a real estate scheme, be sure to consult with a financial advisor who can help you assess the risks involved.