New Jersey Real Estate Investor Charged with Committing Mult...

NEWARK, N.J. - A federal grand jury returned an indictment charging a New Jersey real estate investor and influencer with committing a multi-million-dollar Ponzi-like investment fraud scheme, conspiring to launder drug proceeds, laundering money represented to be drug proceeds as part of a sting operation, and bribing a New Jersey politician, U.S. Attorney Alina Habba announced today.

Cesar Humberto Pina, a/k/a "Flipping NJ," 47, of Franklin Lakes, New Jersey, 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. Pina's initial appearance and arraignment on the indictment have 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. 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 U.S. Attorney's Office is committed to working with our law enforcement partners to root out these types of illicit activities that threaten our communities."

- U.S. Attorney Alina Habba

"Today's indictment against Cesar Pina is due to the diligent work of the DEA and our law enforcement partners, when targeting those individuals who place greed and profit over the welfare of others," stated DEA New Jersey Special Agent in Charge Cheryl Ortiz. "Rather than utilize his social media presence for the betterment of society, Mr. Humberto Pina chose to use it to expand his criminal activities. 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, exasperating an already addictive and deadly opioid crisis. The DEA will continue to hold these people accountable."

"Leveraging his social media prominence, it is alleged Cesar Pina provided services for narcotics traffickers, bribed a government official, and defrauded unsuspecting investors out of millions of dollars, all for personal gain," stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office. "Today's indictment is a reminder of IRS-CI's commit to work alongside with our law enforcement partners to ensure bad actors are held accountable."

"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. 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 FBI and its partners will continue to work tirelessly to ensure that these criminals are brought to justice," Special Agent in Charge Stefanie Roddy stated.

"Investment fraud is simply a crime of greed," stated Inspector in Charge Christopher Nielsen, of the United States Postal Inspection Service, Newark Field Office of the Philadelphia Division. "In this case, Cesar Pina allegedly solicited dozens of individuals to provide him with millions of dollars to purchase and invest in residential properties. However, instead of sharing the profits, he defrauded his investors in a Ponzi scheme. Postal Inspectors will continue to work with our law enforcement partners to combat financial fraud and protect the American people."

According to documents filed in this case and statements made in court:

Pina partnered with a celebrity disc jockey and radio personality to conduct real estate seminars around the country. Through these seminars, self-promotional efforts, and other marketing strategies, Pina developed a significant social media following. 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 4 to 5 months. But instead of using investors' funds as promised, 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. Thus far, the investigation has revealed that 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.

In addition, Pina bribed a local official of Paterson, New Jersey in connection with real estate-related projects in Paterson. For example, Pina provided cash and other bribes to the official in exchange for official action, assistance, and influence in connection with Pina's "Old School 5" development project, which had pending applications before the Paterson Zoning Board of Adjustment.

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.

The charge of bribery concerning programs receiving federal funds carries a maximum penalty of ten 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.

U.S. Attorney Habba credited special agents of the U.S. Attorney's Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark; and special agents and task force officers of the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark with the investigation leading to the charges. She also thanked the Franklin Lakes Police Department for its assistance in the investigation.

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorneys Carolyn Silane and Aaron Webman of the Economic Crimes Unit; Edeli Rivera and Matthew Specht of the Special Prosecutions Division; and Marko Pesce, Deputy Chief of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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Defense counsel: Gerald Krovatin, Esq., Newark, NJ