{"id":520616,"date":"2022-12-03T22:31:00","date_gmt":"2022-12-03T19:31:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/financial-crime-turns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say\/"},"modified":"2022-12-03T22:31:00","modified_gmt":"2022-12-03T19:31:00","slug":"financial-crime-turns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/financial-crime-turns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say\/","title":{"rendered":"#Financial Crime: Turns out a real estate guru peddling the \u2018deal of a lifetime\u2019 was really a fraud, prosecutors say"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a22c2e127c83\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a22c2e127c83\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/financial-crime-turns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say\/#%E2%80%9CFinancial_Crime_Turns_out_a_real_estate_guru_peddling_the_%E2%80%98deal_of_a_lifetime_was_really_a_fraud_prosecutors_say%E2%80%9D\" >&#8220;Financial Crime: Turns out a real estate guru peddling the \u2018deal of a lifetime\u2019 was really a fraud, prosecutors say&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/financial-crime-turns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say\/#Matthew_Onofrio_claimed_hed_cracked_the_code_on_commercial_real_estate_but_is_accused_of_fleecing_inexperienced_investors_and_banks\" >Matthew Onofrio claimed he\u2019d cracked the code on commercial real estate, but is accused of fleecing inexperienced investors and banks.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/financial-crime-turns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say\/#Lukas_I_Alpert\" >Lukas I. Alpert<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CFinancial_Crime_Turns_out_a_real_estate_guru_peddling_the_%E2%80%98deal_of_a_lifetime_was_really_a_fraud_prosecutors_say%E2%80%9D\"><\/span>&#8220;Financial Crime: Turns out a real estate guru peddling the \u2018deal of a lifetime\u2019 was really a fraud, prosecutors say&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Matthew_Onofrio_claimed_hed_cracked_the_code_on_commercial_real_estate_but_is_accused_of_fleecing_inexperienced_investors_and_banks\"><\/span>\n  Matthew Onofrio claimed he\u2019d cracked the code on commercial real estate, but is accused of fleecing inexperienced investors and banks.<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001443876\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001443876\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       If someone promises you the \u201cdeal of a lifetime,\u201d it\u2019s probably not a good investment.<\/p>\n<p> That\u2019s what finance guru Matthew Onofrio, who sold a program claiming to have cracked the code on commercial real estate, promised inexperienced investors looking to strike it rich. But prosecutors say it was all a fraud aimed at lining Onofrio\u2019s pockets.<\/p>\n<div class=\"paywall\">\n       The 31-year-old native of Eau Claire, Wis., <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared on investing podcasts and at conferences with a compelling tale. He said he had walked away from a promising career as a nurse anesthetist when he discovered a real estate strategy known as <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>le net investing, through which he had amassed a portfolio worth over $150 million in just three years.<\/p>\n<p>But between 2020 and August of this year, federal prosecutors in Minnesota say, Onofrio had ripped off numerous banks to the tune of $35 million by roping investors into a complex web of quick-flip real estate sales, fraudulent mortgage applications and doctored appraisals.<\/p>\n<p>In a statement, Onofrio\u2019s attorney, Marsh Halberg, said none of his client\u2019s investors had been hurt financially by their investments. <\/p>\n<p>\u201cThe defense is aware of very few, if any, transactions where the investors have suffered actual losses at his time. We believe most of the transactions with Mr. Onofrio still maintain a positive cash flow and \/or an increase in the value of the property that was purchased,\u201d Halberg wrote in an email. <\/p>\n<p>A civil suit filed this year involving a radiologist from Puerto Rico named Matthew Hermann, who wanted to get involved in real estate investing with his wife, laid out how Onofrio operated.\u00a0<\/p>\n<p>The suit said the pair met at a networking conference in Colorado in 2020 and hit it off while discussing real estate opportunities. Hermann said he was hoping to build up a real estate portfolio that would provide him with enough income that he could stop working.<\/p>\n<p>Hermann said in court papers that Onofrio offered to bring him into \u201cthe deal of a lifetime,\u201d involving a commercial property for sale for $6.3 million in Minneapolis. All Hermann had to do was come up with $1.5 million for the down payment.<\/p>\n<p>\u201cOnofrio told Hermann that he won\u2019t get to his goal of leaving his job by buying duplexes. Onofrio told him that \u2018this will light gas on the fire of where you need to go\u2019. He told Hermann that this is all about mindset\u2019,\u201d the court documents read.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>When Hermann said he didn\u2019t have that kind of money available, Onofrio offered to lend it to him so he could secure a bank loan for the purchase and Hermann agreed, the court filings said. What Onofrio didn\u2019t say was that he had already reached a deal with the owners to buy the building for $4.75 million, not $6.3 million, and that the difference was going into his pocket, the suit claimed.<\/p>\n<p>Hermann was then stuck paying nearly $6,000 a month in loan payments to Onofrio in addition to his bank loan.<\/p>\n<p>\u201cOnofrio pushed Hermann\u2014a novice with real estate\u2014into this purchase with grand promises of the deal of lifetime. The reality, though, was that Onofrio was the one assured to make money on the deal, not Hermann,\u201d the papers read.<\/p>\n<p>Hermann later tried to sell the property and said he found a buyer willing to pay $6.3 million for it, but the deal fell through due to litigation surrounding Onofrio\u2019s loan.<\/p>\n<p>Hermann\u2019s attorney didn\u2019t respond to a message seeking comment.<\/p>\n<p>Federal prosecutors described a similar pattern, with Onofrio allegedly placing his own money into investors\u2019 accounts to make their finances look better to lenders, and also fabricating appraisal documents to inflate the value of properties.\u00a0\u00a0<\/p>\n<p>In one deal in 2021, a Minneapolis commercial property was sold three times in just five months, passing through more than one business entity Onofrio controlled. By the end of the string of transactions, the price had jumped by nearly $4 million, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finance-commerce.com\/2021\/05\/golden-valley-building-acquired-for-3rd-time-in-5-months\/\" class=\"icon none\">business publication Finance &amp; Commerce reported<\/a>.<\/p>\n<p>Onofrio is charged with three counts of bank fraud and prosecutors say they are seeking the forfeiture of $35 million seized during the course of the investigation.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Lukas I. Alpert\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/lukas-i-alpert\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/lalpert1\",\"text\":\"@lalpert1\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:lukas.alpert@marketwatch.com\",\"text\":\"lukas.alpert@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Lukas_I_Alpert\"><\/span>Lukas I. Alpert<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"252_MW\" author-name=\"Lukas I. Alpert\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fturns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say-11669928059%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7160-824BFD17A00A%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Financial Crime: Turns out a real estate guru peddling the \u2018deal of a lifetime\u2019 was really a fraud, prosecutors say&#8221; Matthew Onofrio claimed he\u2019d cracked the code on commercial real estate, but is accused of fleecing inexperienced investors and banks. If someone promises you the \u201cdeal of a lifetime,\u201d it\u2019s probably not a good investment&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":520617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-677476\/horizontal","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-520616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/520616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=520616"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/520616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/520617"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=520616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=520616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=520616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}