Federal prosecutors say a former Milwaukee real-estate promoter was arrested in Florida this week on charges tied to an allegedly bogus fix-and-flip investment operation that pulled in roughly $1.9 million from investors. The arrest follows months of civil lawsuits and regulatory crackdowns accusing him of promising quick profits on rehabbed homes while quietly steering investor cash elsewhere.
According to TMJ4, federal court filings say Joseph Nantomah was taken into custody in Florida late last week. A judge denied him bail and ordered that he be transferred to Wisconsin. The filings note that the FBI opened an investigation in February 2025. In a written statement to the station, Nantomah said, "I have never stolen any investors' funds."
SEC alleges $1.9M scheme
The Securities and Exchange Commission sued Nantomah and three companies he controlled in August 2025, alleging that from May 2020 through January 2024 the defendants raised at least $1.9 million from roughly 30 investors by offering unregistered real-estate investments. The complaint seeks injunctions, disgorgement and civil penalties for alleged offering and securities violations.
Investors have sued in federal court
Investors have filed a series of federal lawsuits in the U.S. District Court for the Eastern District of Wisconsin, bringing claims that include breach of contract, civil theft and securities violations. Court records in cases such as Adeosun v. Nantomah and Ibe v. Nantomah reflect judges and litigants questioning public statements about the size of the promoter's holdings and how investor money flowed through his businesses, according to filings posted at Justia.
Regulators say investor cash wasn't spent on rehabs
The SEC's complaint and related filings state that only a small portion of investor capital went toward purchasing and renovating properties, and that much of the remainder was diverted to other ventures and spending. Regulators contend that more than 80% of incoming investor funds were routed away from the promised fix-and-flip projects and into unrelated accounts or expenditures, per the SEC filing.
Victims' lawyers vow to press claims
A Milwaukee law firm representing several investors says some clients lost their life savings and plans to pursue both civil and criminal remedies. Emil Ovbiagele, managing shareholder at AxePoint Law, told TMJ4, "These are real people. They may be identified as victim 1, victim 2, victim 3, victim 4. I know them by name. I know their stories. I know what they've had to forego, what they've had to go through, and so we intend to ensure that the humanity and the real human loss of all of this remains at the forefront of the entire case and situation." Ovbiagele is listed as the firm's managing shareholder on the firm's website at AxePoint Law.
What happens next
The criminal complaint centers on alleged wire fraud under 18 U.S.C. § 1343. According to Cornell Law School, wire fraud carries a maximum prison term of up to 20 years. An indictment or information generally must be filed within 30 days of an arrest under the Speedy Trial Act, so prosecutors have a limited window to present additional charges to a grand jury, per federal statute.
Prosecutors and investors now move toward formal charges and court scheduling, and the case is likely to draw close attention from other investors and regulators. We will update this story as new filings or hearings are set.
