HouseFlipper Tied To DJ Envy Charged With ‘PonziLike Real Estate Fraud Scheme By Feds
Cesar Pena, the reputed speculator with close ties to New York radio host , was arrested Wednesday (October 18) on federal charges of running a multimillion-dollar "Ponzi-style investment fraud scheme."
The allegations come after months of accusations on social media and a civil lawsuit against Pena, who the victims say stole their money with promises of big profits. DJ Envy (real name RaaShawn Casey) was involved in the scheme because critics claim he helped promote Pina, including an appearance on her national hip-hop radio show The Breakfast Club — allegations he denies.
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In announcing the charges, federal authorities said Pena "used his celebrity status and social media following to lure potential victims."
US Attorney for the State of New Jersey , Philip R. Salinger, in a statement: "By promising very good profits, Pena allegedly defrauded dozens of people out of millions of dollars." "Our office is committed to protecting the public from these schemes and prosecuting those who lie to investors for personal gain."
DJ Envy has not been accused or charged with any criminal offence. But federal prosecutors specifically noted that Pena "collaborated with the popular singer and radio host," who appeared in the indictment as "Man 1," to boost his reputation as a real estate guru.
"Together they have used the fame of 'Individualno-1' to promote various companies in the real estate sector controlled by Pena", writes the prosecution in the criminal report. "Pena said he was a very successful real estate investor, owned thousands of properties in different states and had business dealings with many celebrities," he added.
Attorneys for Pena and Envy did not respond to requests for comment.
The allegations against Pena first surfaced in May, when an Instagram account accused him of defrauding several investors and accused Envy of playing a key role. That led to a flood of civil lawsuits filed by dozens of victims who claimed Pena owed them thousands, if not millions, of dollars. A lawyer for one of the victims estimates that more than 30 investors have already expressed interest in more than $40 million from Pena and his wife, Jennifer.
Many of those lawsuits, including one filed by music industry veteran Anthony Martini , name DJ Envy as co-defendants, citing his close relationships, including Pena's frequent appearances on The Breakfast Club and a series of real estate seminars these two men attended. . . . Set. One case said Envy "aided and abetted" the scammers by "using his public image as a popular radio disc jockey to promote his real estate venture."
Zilia says these kinds of claims are not only false — and he says he's also a victim of Pena's alleged scheme — but they're also defamatory. He is suing a social media influencer who posted the initial allegations, claiming he was "spreading" lies to promote his real estate business and seeking to be excluded from lawsuits against investors.
In an interview with Billboard last week, Envy's attorney , Massimo F. D'Angelo , said his client had nothing to do with the specific transactions related to Pena's alleged scheme and that he was targeted by lawyers and critics. who had "caused it". the case. One celebrity included: "Jealousy has nothing to do with him. The only reason he did it is because he's a public figure."
Read the full complaint against Pena here.
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