The New Jersey real estate influencer Cesar Pina, who goes by the name "Flipping NJ" online, is now finding himself in a very different sort of spotlight this time in a courtroom. The self-described real estate guru pleaded not guilty this week to a long list of federal charges, including wire fraud, money laundering conspiracy, and bribes concerning programs that receive federal funds.
Pina, who gained a following by hosting flashy seminars and touting significant returns on social media, was charged with operating a nationwide Ponzi scheme that dates back at least to 2017. Pina pitched his prospective investors on sky-high returns of up to 30% or more by "flipping" residential properties, according to federal prosecutors. But behind the curtain, prosecutors say, he was flipping funds from one investor to another.
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Pina has now been charged criminally by the U.S. Attorney's Office for the District of New Jersey in a six-count federal indictment that claims he stole millions of dollars from investors, spent the money on personal expenses, and laundered money to and from drug trafficking businesses. And as if that were not enough, he is also charged with bribing an official with the city of Paterson to help advance a large project, "Old School 5," a real estate undertaking pending before the city's zoning board.
"Cesar Pina is accused of stealing millions of dollars of peoples' savings, laundering money for narcotics traffickers, and bribing an elected official to assist in his real estate projects," U.S. Attorney Alina Habba said. "This multiyear deluge of criminal activity and corruption has manifested itself in various ways, not the least of which was to victimize investors across the country, contribute to the endless cycle of drugs, and to diminish confidence in elected officials in this country," he said.
What began as a real estate empire built on confidence and grand promises now appears, according to government investigators, as a nexus of deception. Prosecutors maintain that Pina's operation operated much like a traditional Ponzi scheme: investors' money was deployed to pay off earlier investors. In contrast, a facsimile of success was maintained online and in seminars. In the meantime, some of that money was reportedly being used to support illicit personal spending and keep the fiction.
"Instead of using his social media platform as a force for good, Mr. Humberto Pina used it to grow his criminal empire," DEA Special Agent Cheryl Ortiz said. "His conduct, and his willingness to launder drug proceeds, is no different than those individuals who are pushing drugs on our streets and filling our city and county jails with narcotics."
Each count of wire fraud Pina faces carries a potential sentence of up to 20 years in prison and a fine of $250,000. The money laundering charges also have the same possible prison time, but the penalties can be as high as $500,000. The bribery charge, by itself, could add another 10 years and an additional quarter million in fines.
However, even though Pina is pleading not guilty, he finds himself facing an uphill battle in the legal fight. One of the agencies involved, according to people who were not authorized to discuss the matter publicly, is the Bureau of Alcohol, Tobacco, Firearms and Explosives, which is dealing with explosives that some of the men are accused of possessing, those people said. The investigation is being led by several federal and local agencies as part of the Organized Crime Drug Enforcement Task Force, according to a person familiar with the matter, indicating that prosecutors are entering the case with substantial evidence.
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