Prison for Woman Ponzi Scheme of $200M in the US

20 Years in Prison for Woman in $200 Million Ponzi Scheme
Controversial Case in the U.S.
Here are the details.

Johanna Michely García, former CEO of MJ Capital Funding LLC, a financial fund company based in South Florida, has been sentenced to 20 years in prison.

She led a Ponzi scheme that defrauded investors of approximately $200 million.

The sentence was handed down on Tuesday by the U.S. Attorney’s Office for the Southern District of Florida.

García, 41, pleaded guilty in July to «conspiracy to commit mail and wire fraud» after facing 29 charges, of which 28 were dismissed.

20 Years in Prison for Woman in $200 Million Ponzi Scheme

A Broward County woman was sentenced to 20 years in federal prison on Tuesday for her role in orchestrating a Ponzi scheme that defrauded investors of approximately $190.7 million. https://t.co/gzEw58IfSW

— WSVN 7 News (@wsvn) December 3, 2024

Between October 2020 and August 2021, García led MJ Capital Funding, a company claiming to provide cash advances to small and medium-sized businesses through a short-term financing mechanism known as MCA (Merchant Cash Advance).

Authorities revealed that García, along with her partner Pavel Ramón Ruiz Hernández, used investor funds to pay earlier investors and for personal gain, rather than financing legitimate business advances.

Instead, they used new investors’ money to pay earlier investors and fund personal expenses—hallmarks of a Ponzi scheme.

According to the prosecution, «of the nearly $200 million collected, investors lost close to $90 million.»

FBI Shutdown and Arrests

MJ Capital Funding’s fraudulent operation unraveled in 2021 when the FBI and the Securities and Exchange Commission (SEC) intervened, shutting the company down.

Even after the shutdown, García and her collaborators continued a similar scheme under a new name until her arrest.

While awaiting trial, Johanna Michely García reportedly recruited others to attract more investors, offering commissions for funds raised.

Ruiz Hernández, García’s co-defendant, received a nine-year, two-month prison sentence in September 2023 after pleading guilty earlier that year.

The severe sentence for García underscores the U.S. government’s dedication to combating large-scale financial fraud. These crimes not only devastate individual victims but also threaten the integrity of the broader economic system.

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