The Securities and Exchange Commission (SEC) has charged a California podcaster and real estate expert identified as Michael Roy Boykin in an alleged Ponzi scheme. Mr. Boykin, who goes by the alias ‘Cash Flow King’, has been accused of raising more than 11 million dollars from over 500 unsuspecting investors.
The SEC obtained an asset freeze order from the District Court for the Central District of California on Mr. Boykin’s investments. In their statement, the SEC alleged that Mr. Boykin fraudulently enticed investors with promises of high returns when he had no such ability to produce. According to the complaint, Mr. Boykin’s “scheme has resulted in investors being in the dark regarding the true nature of their investments and their current status.”
The SEC also alleged that Mr. Boykin used false statements to mislead investors into thinking that his investments were profitable, when in fact he was using new investors’ funds to pay earlier investors. In a press release issued by the agency, the SEC announced that they had frozen Mr. Boykin’s assets in order to prevent him from dissipating them.
This isn’t the first time Mr. Boykin has been charged with a financial crime. In 2019, Mr. Boykin was convicted for loan fraud in California after it was discovered he had misrepresented a loan in an effort to re-finance a property in Malibu.
This case is a stark example of how easily investors can be misled by those they invest with. It also demonstrates the importance of conducting due diligence when investing. Before investing any sum, one should always take the time to investigate the backgrounds of those they intend to invest in. Unfortunately in cases like these, the funds invested by legitimate investors are often never recovered.
The SEC is taking this matter very seriously, and is working to ensure that no similar schemes go through any longer. The agency is sending out a warning to investors to be more vigilant in doing their due diligence before investing in any person or entity they are unfamiliar with.