DJ Envy is going through allegations of involvement in an actual property Ponzi scheme together with creator Cesar Pina, his spouse Jennifer Pina, and musician Johnny Marines. The Breakfast Membership host is a named accomplice of their actual property enterprise, Flip 2 DAO, the place buyers declare DJ Envy and Pina disappeared with almost $1.5 million invested in an condominium venture. Now, buyers Anthony Barone and Anthony Martini have filed a lawsuit looking for compensation for the alleged rip-off.
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In 2018, DJ Envy, one of many hosts of The Breakfast Membership, mentioned his partnership with Cesar and Jennifer Pina. He talked about their exercise of buying undervalued Paterson houses and flipping or renting them.
The next 12 months, DJ Envy and Pina pitched the concept of Taylor Flats to Barone and Martini. Martini obtained paperwork, together with a inventory buy settlement, for buying a 25 p.c stake within the venture, whereas the remainder was allotted to Angela Pina.
The corporate guarantees buyers alternatives to personal vetted actual property properties under market worth and earn passive revenue. In response to the lawsuit, Martini’s funding coated price overruns and early working bills, with the venture being funded by $2.5 million from Jennifer and $3.5 million in development financing.
Barone later invested $500,000 for a 12.5 p.c stake within the venture. Nonetheless, the Pinas allegedly cast Martini’s signature and failed to offer clear updates on the development progress.
Moreover, Barone was satisfied by the Pinas to take a position $300,000 in one other enterprise enterprise involving fractional possession. Regardless of these investments, there was no communication from DJ Envy or the Pinas to handle the issues of their buyers.
The lawsuit filed by Barone and Martini seeks compensatory, consequential, and punitive damages towards DJ Envy and Pina. As of now, that is an ongoing investigation into the allegations of operating an actual property Ponzi. scheme.
In response to a report in October 2020, DJ Envy was selling the identical actual property enterprise on a webinar.
In 2022, Lupe Fiasco confronted backlash from followers claiming his NFT “hustle” was a rip-off. Moreover, the famend trend model SHEIN confronted a lawsuit alleging involvement in a federal infringement scheme, additional highlighting the prevalence of such scams inside varied industries.
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