Joseph James Nantomah, the former Milwaukee businessman known online as “The Black Mentor,” has pleaded guilty in a federal fraud case tied to real estate investment promises and millions of dollars from investors.
Nantomah reached a plea deal with prosecutors after being indicted on nine felony counts, including wire fraud and money laundering, according to TMJ4.
Under the agreement, he pleaded guilty to Count Three, wire fraud, and Count Seven, unlawful monetary transactions.
Federal filings cited by the station say Nantomah admitted obtaining at least $2,931,569 from at least 32 investors as part of the scheme. After subtracting partial “Ponzi-style” payments, the net loss to victims was at least $2,480,348.
Federal Filings Say Investors Were Promised Fix-And-Flip Profits
According to the plea agreement, Nantomah confessed to soliciting investor funds by promising lucrative returns from “fix-and-flip” real estate deals. Prosecutors said he instead used the money for personal expenses and to pay earlier investors, conduct described in court filings as a Ponzi-style scheme.
TMJ4 previously reported that the federal indictment accused Nantomah of luring victims through real estate investment pitches, including business coaching classes and conferences. Prosecutors said he guaranteed returns in fixed amounts or percentages and posted property videos to make deals appear real.
The indictment also alleged that victim funds were used for personal expenses, luxury purchases, “golden visa” immigration programs, and lulling payments meant to maintain investor trust and delay suspicion.
He Agreed To Restitution And Forfeiture
As part of the plea deal, Nantomah agreed to pay more than $2.4 million in restitution to victims and to forfeit income and assets tied to the fraudulent activity. He also gave up most rights to appeal, and prosecutors agreed to drop other charges if he fulfills the agreement.
The wire fraud count carries a maximum penalty of 20 years in prison, while the unlawful monetary transaction count carries a maximum penalty of 10 years. Prosecutors indicated they will recommend a sentence no higher than 48 months, but the judge will decide the final sentence.
Nantomah is scheduled to return to court for sentencing on Sept. 18, 2026.
The SEC Filed A Separate Civil Case
The criminal plea follows a separate civil action from the U.S. Securities and Exchange Commission. The SEC charged Nantomah and three companies he owns and controls — Investors Capital LLC, Global Investors Capital LLC, and High Income Performance Partners LLC — with operating a real estate-related offering fraud.
According to the SEC, from approximately May 2020 through at least January 2024, Nantomah and the companies solicited investors by promising to purchase, fix, and flip real estate for profit. The agency said they raised at least $1.9 million from at least 30 investors throughout the United States, including at least nine investors in Wisconsin.
The SEC alleged that many investors were members of the Nigerian-American community and that Nantomah misused investor money by spending at least 80% of it on himself and his other ventures, rather than on the promised real estate transactions.
He Remains In Custody Before Sentencing
TMJ4 reported that Nantomah will remain in custody while awaiting sentencing. Federal filings cited by the station said a judge found a significant risk that he might flee, citing the scope of the fraud, lack of strong community ties, and pending immigration issues.
The exact prison sentence, restitution process, and forfeiture outcome will be decided through the next stage of the federal case.
The Investor Warning Is About Guaranteed Real Estate Returns
The case shows how real estate deals can be packaged to sound safer than they are. Promised fix-and-flip returns, coaching-seminar pitches, luxury branding, social-media credibility, and property walkthrough videos do not prove that investor money is actually going into the deals described.
Investor.gov warns that fraudsters may use shared communities, religious groups, ethnic communities, professional groups, or social circles to gain trust. A familiar background, public persona, or community reputation is not a substitute for independent verification.
Before putting money into a real estate investment, investors should verify whether the person or company offering it is registered, ask for written offering documents, confirm property ownership and liens independently, and be cautious when returns are described as guaranteed or unusually high.