POMPANO BEACH, FLA. (WSVN) - A Broward County woman has pleaded guilty to conspiracy to commit mail and wire fraud, related to a Ponzi scheme that defrauded investors of approximately $190.7 million.
Johanna Michely Garcia, 41, formerly the CEO of Pompano Beach-based MJ Capital Funding, LLC, admitted to leading a fraudulent scheme from October 2020 to August 2021, which falsely promised high returns from merchant cash advances (MCAs) that were not delivered, according to the United States Department of Justice.
Garcia, along with her co-conspirators, including Pavel Ramon Ruiz Hernandez, solicited funds under the pretense of investing in MCAs.
Instead, they used new investor money to pay off earlier investors, enriching themselves while deceiving investors about the true nature of their investments. The scheme resulted in nearly $90 million in losses for investors.
After MJ Capital Funding was shut down by the FBI and SEC in the fall of 2021, Garcia continued her fraudulent activities by launching a new Ponzi scheme under different business names. This new scheme mirrored the operations of MJ Capital Funding, deceiving victims with similar false promises.
Garcia’s sentencing is scheduled for Sept. 20.
Ruiz Hernandez, who was charged in August 2022 and pleaded guilty in April 2023, was sentenced in September 2023 to 110 months in prison and three years of supervised release.
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