INVESTOR ALERT: LKLSG Investigating Potential Lawsuit Relating to Alleged $70 Million Ponzi Scheme by Johanna M. Garcia and MJ Capital Funding LLC
MIAMI, Aug. 16, 2021 /PRNewswire/ -- In a recently filed enforcement lawsuit, the Securities and Exchange Commission ("SEC") alleges that Johanna M. Garcia, through her South Florida-based companies, MJ Capital Funding, LLC and MJ Taxes and More, Inc. ("MJ Capital"), perpetrated a $70 to $120 million Ponzi Scheme against more than 2,000 unwitting investors.
The SEC alleges that Garcia raised tens of millions of dollars from ordinary investors, including police officers, firefighters, nurses and doctors, in a fraudulent securities offering. Garcia allegedly told investors that their money would be used to fund small business loans called "merchant chase advances," and that investors would be repaid at rates of 120% to 180% from the small business borrowers' loan repayments.
In reality, the SEC alleges, Garcia was operating a classic Ponzi scheme, paying old investors with new investors' money. Less than $3 million of the tens of millions of dollars invested were actually loaned to small businesses. Garcia allegedly used more than $25 million of investor money to pay herself and sales agents promoting her investment scheme.
The SEC alleges that possible sales agents included Bryant Guayara and Shanaz Ali of Da VibezCreations LLC and DaVibezStudio; Erick Ruiz of Four Corners Investors Group LLC; Steven Fernandez and Monica O'Mealia of Empire Investors, LLC; Gloria M. Galvez and Mauricio A. Guayara of GMG Special Services, LLC; Shaaz Ali of Obsidian South, LLC; Raed Kahn of Ascension Capital Group, LLC; Marco Rosas and Mauricio Rosas of M5 Store LLC, Zio Marco Transportation LLC and Zio Marco Services LLC; Leonela Duarte and Harry Medina of HAMN, LLC, LeDuarte Corp. and LeDuarte USA, LLC; and Osmary Soto and Fabricio Guzman of DMFabrimar General Services, LLC.
The law firm of Levine Kellogg Lehman Schneider + Grossman LLP ("LKLSG") in Miami is investigating potential legal action designed to help victims of the MJ Capital scam. If you executed a loan agreement with MJ Capital, please contact attorney Jason Kellogg at the information above or through www.mjcapitalponzi.com. LKLSG represents clients nationwide.
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SOURCE Levine Kellogg Lehman Schneider + Grossman
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