NEWARK, N.J. — A Franklin Lakes real estate investor who promoted himself online as “Flipping NJ” pleaded guilty Thursday to running a multimillion-dollar investment fraud scheme, conspiring to launder drug money and bribing a Paterson official, the U.S. Attorney’s Office for the District of New Jersey said.
Cesar Humberto Pina, 48, entered the plea before U.S. District Judge Madeline Cox Arleo in federal court in Newark. He admitted to a four-count superseding information charging wire fraud, money laundering conspiracy, bribery concerning a program receiving federal funds and bribery under the Travel Act.
Beginning in at least 2017, Pina solicited money from individual investors for what he described as deals on specific properties in New Jersey and other states, according to documents filed in the case and statements made in court. He promised returns of 30% or more within four to five months.
Pina drew in investors through real estate seminars and a large social media following, prosecutors said. Instead of using the money as promised, he mixed investor funds together, used money from newer investors to pay earlier ones and spent funds on business and personal expenses the investors had not approved.
U.S. Attorney Robert Frazer said Pina “admitted to misappropriating millions of dollars meant for real estate investments.” The release did not give a specific loss figure or say how many investors were affected.
Pina also admitted to conspiring to launder proceeds of drug sales for people he knew were involved in narcotics trafficking.
“This case demonstrates how drug trafficking can intersect with financial crime and corruption,” said Towanda R. Thorne-James, special agent in charge of the Drug Enforcement Administration’s New Jersey Field Division.
The bribery counts involve cash and other payments Pina made to a local official in Paterson, who was not named in the release. Prosecutors said the bribes were meant to influence applications for Pina’s “Old School 5” development project that were pending before the Paterson Zoning Board of Adjustment.
“Pina lured in victims and exploited their trust by using his online influencer persona,” said Stefanie Roddy, special agent in charge of the FBI’s Newark office.
Christopher Nielsen, inspector in charge for the U.S. Postal Inspection Service, said, “Financial fraud schemes such as these can devastate victims and their hard-earned savings.”
The wire fraud and money laundering conspiracy counts each carry a maximum of 20 years in prison. The federal program bribery count carries up to 10 years, and the Travel Act count carries up to five years. Each count also carries a fine of up to $250,000, or $500,000 for the money laundering conspiracy count, with some counts allowing a fine of twice the gain or loss instead.
Sentencing is scheduled for March 10, 2027.
The case was investigated by the DEA, the U.S. Postal Inspection Service, the FBI’s Newark office, IRS Criminal Investigation and investigators with the U.S. Attorney’s Office, with help from the Franklin Lakes Police Department. Assistant U.S. Attorneys Carolyn Silane, Edeli Rivera, Aaron Webman and Marko Pesce are prosecuting the case.
Pina is represented by Gerald Krovatin of Newark.
This report is based on information from the U.S. Attorney’s Office for the District of New Jersey.
Source: U.S. Attorney’s Office press release
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