DJ Envy, co-host of The Breakfast Club, is facing another legal challenge alongside former business partner Cesar Pina, as Derik Deangelo, Chamblin Group Real Estate Ventures LLC, and Reispec Developments LLC file a lawsuit alleging their involvement in a real estate seminar-based Ponzi scheme.
The lawsuit, obtained by AllHipHop, outlines nine different complaints, including violation of the New Jersey Consumer Fraud Act, fraud, breach of contract, negligent misrepresentation, securities fraud, a civil RICO violation, joint and several liability, and fraudulent transfer. The plaintiffs are seeking a minimum of $2,000,000 in damages and requesting a jury trial.
The court documents claim that Envy and Pina used their real estate seminars, known as “Flipping New Jersey,” as a method to attract victims and scam money from them. The lawsuit details how attendees were targeted during private consultations, with Pina attempting to assess their financial resources and soliciting individuals for real estate “joint ventures.”
The victims were allegedly contacted after seminars and enticed to invest in real estate joint venture agreements. These contracts, specific to properties supposedly jointly owned and controlled by Pina and Envy, required upfront capital contributions from investors. The lawsuit contends that the funds were represented to be used for property renovations to enhance resale value.
The complaint highlights the social media allegations from numerous individuals who claimed to have invested with Envy and Pina, asserting that the defendants failed to repay their money. Estimates suggest that victims may have been defrauded of funds ranging from $50-100 million or more. The lawsuit emphasizes that the U.S. Attorney’s Office for the District of New Jersey has criminally charged Cesar Pina with wire fraud related to the activities in question.
Derik Deangelo, the lead plaintiff, became acquainted with DJ Envy in 2018 and officially started investing in July 2022. The lawsuit adds to the mounting legal challenges faced by DJ Envy and Cesar Pina and could have implications for Envy’s role on The Breakfast Club, with recent comments from Charlamagne Tha God suggesting a potential shift in the show’s dynamic.