FBI and SEC shut down MJ Capital Funding in Pompano Beach after $190.7 million Ponzi scheme led by Broward County woman
Pompano Beach, Florida – A woman from Broward County, Johanna Michely Garcia, 41, has confessed to charges of conspiracy to commit mail and wire fraud in connection with a Ponzi scheme that scammed investors out of about $190.7 million.
As the former CEO of MJ Capital Funding, LLC, located in Pompano Beach, Garcia orchestrated a fraudulent operation from October 2020 through August 2021. This scheme involved luring investors with the promise of high returns from merchant cash advances (MCAs), which were never actually provided. According to the United States Department of Justice, the reality was far different.
Together with her co-conspirators, such as Pavel Ramon Ruiz Hernandez, Garcia attracted investment under the guise of funding MCAs. In essence, however, they were diverting funds from new investors to pay previous ones, personally enriching themselves and misleading investors about the true nature of their investment. This deception led to losses nearing $90 million for the investors.
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After the FBI and SEC closed down MJ Capital Funding in autumn of 2021, Garcia did not cease her fraudulent activities. She initiated another similar Ponzi scheme under various other business names, continuing to defraud with promises akin to those she made with MJ Capital Funding.
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The court has scheduled Garcia’s sentencing for September 20. Meanwhile, Ruiz Hernandez, who faced charges in August 2022 and pleaded guilty in April 2023, received a sentence in September 2023 of 110 months in prison followed by three years of supervised release.
