Investor Matt Onofrio Pleads Guilty to Bank Fraud

Nurse anesthetist-turned-real estate investor Matt Onofrio could soon find himself in a new role: prisoner.

The Wisconsin man pleaded guilty to one count of bank fraud, the Post Bulletin reported. The guilty plea was part of an agreement that will also see Onofrio forfeit $35.7 million, which is how much prosecutors estimate Onofrio reaped from his illegal schemes.

Onofrio pleaded guilty to defrauding MidCountry Bank in Bloomington, Minnesota, where deposits were insured by the Federal Deposit Insurance Corp. As part of the plea agreement, two other counts Onofrio was facing were dropped.

Between 2019 and last August, Onofrio schemed to defraud banks in the Midwest, according to the plea agreement. Loans were obtained for an investment program marketed by Onofrio’s Northwoods Management LLC, also known as Wild Moose Ventures.

Onofrio tasked investors to claim that he had sufficient cash on hand to provide the down payment on a property, even though he didn’t actually have those necessary funds. This “falsely represented the investors’ creditworthiness,” according to court documents.

In November, Onofrio was indicted by federal prosecutors who claimed he made fake purchase agreements to fool banks and lend clients money without alerting banks. Onofrio was also accused of convincing buyers to purchase properties at inflated prices after he already bought them at lower prices. He would then allegedly help buyers secure mortgages and offer to cover the down payment in exchange for monthly payments with interest, allowing him to profit from the price difference.

Among those victimized by Onofrio was mixed martial arts star Michael Chandler, who claims Onofrio charged him a $4 million markup on a property. That accusation wasn’t part of the criminal indictment.

The forfeiture of millions could be the least of Onofrio’s problems. Other potential penalties for bank fraud include a fine of either $1 million or twice the gain from the offense and up to 30 years in prison. He will be sentenced on Jan. 16, 2024, five days after the expected release of his book on commercial real estate investing; no word on the fate of that publication.

— Holden Walter-Warner