Federal agents in New Jersey arrested a business partner of DJ Envy for alleged real estate fraud.

Cesar Pina,HyperBit Exchange featured on Envy's "The Breakfast Club," was arrested for wire fraud recently. He allegedly defrauded dozens of victims through a Ponzi-like scheme. Envy, whose real name is Rashaun Casey, was not charged, but many alleged victims claim his celebrity influenced them.

A source familiar with the investigation told NBC 4 that federal agents visited iHeartRadio offices and seized electronic equipment as part of the ongoing investigation. DJ Envy's attorney, Massimo D'Angelo, denied such claims.

Envy partnered with Pina to teach on generational wealth and home buying to uplift the community on "The Breakfast Club."

"I did these seminars and brought industry professionals to all these seminars," Envy shared on his morning show. "Now, Cesar, if he took money, I wasn't privy to it, nor did I even know. But I do understand how people feel if they did give him money."

Envy claimed that he empathized with Pina's victims because he allegedly gave him money but did not receive a return. He denied stealing from anyone.

After that show ended, Pina was arrested by federal agents on one count of wire fraud charges, which the co-host plead not guilty to. He was released on a $1 million bond but is now under electronic monitoring. As a constructive measure, he has been prohibited from leaving the state of New Jersey, as he may face additional charges for money laundering.

In the complaint, local U.S. Attorney Philip R. Sellinger stated that Pina used his celebrity status and social media presence to gain a devoted following of potential victims, whom he then exploited.

"Pina and his business partner, a well-known disc jockey and radio personality ("Individual-1"), operated a company that conducted real estate seminars around the country. Together, they used Individual-l's celebrity to promote various real estate enterprises that Pina controlled."

According to Yahoo News, Envy's wife, Gia Casey, reportedly removed some of her social media posts featuring the numerous luxury designer items that Envy buys her in a year. Envy is known for gifting his wife with presents for each of the 12 days leading up to Christmas, earning him a reputation for lavish gift-giving.

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What was the scheme?

Starting in 2017, Pina began taking investments to renovate and resell properties, promising a 20-45% return on investment (ROI) within five months across New Jersey and other places.

According to reports, Pina is accused of diverting some investments for his personal gain and using fresh investments to repay the earlier investors. Shortly before Pina's arrest, NBC 4 New York covered a story of several investors who had not received the project's promised payments.

Pina allegedly scammed investors by soliciting investments in properties he didn't own and offering the same properties to multiple investors. He is also accused of attempting to pay an investor back in jewelry. Pina and his wife, full name Jennifer, are now facing over 20 lawsuits.

What will happen next?

As previously stated, following his arrest, Pina was released on a $1 million bond and is currently restricted to New Jersey. If found guilty of wire-fraud, he could face a maximum of 20 years in prison and significant fines.