The SEC recently obtained a temporary restraining order, an asset freeze, and the appointment of a receiver to stop a Ponzi scheme allegedly perpetrated by Coral Springs, Florida resident Johanna M. Garcia and two of her companies.
The SEC filed an emergency action in federal court in the Southern District of Florida, alleging that Garcia raised at least $70 million from over 2,000 investors since June 2020 in a fraudulent securities offering. The SEC claims that Garcia, and her companies MJ Capital Funding, LLC and MJ Taxes and More, Inc. represented that investor moneys would fund small business loans (so-called "merchant cash advances"), and promised annual returns of 120% to 180%. But the SEC alleges that the defendants made less than $3 million in merchant cash advance loans and earned scant revenues. According to the SEC, the defendants operated a Ponzi scheme, allegedly using at least $20 million of new investor funds to pay “returns” to prior investors. The SEC also alleges that the defendants misused $27.4 million of investor funds by paying other companies, including significant payments to sales agents.
The SEC charges the defendants with violating the federal securities laws’ antifraud and registration provisions. In addition to the emergency relief granted by the Court, the SEC seeks disgorgement, civil penalties, injunctive relief, and an officer and director bar against Garcia.
If you invested with Garcia, MJ Capital, or MJ Taxes, you may have a legal claim. The securities attorneys at Morgan & Morgan’s Business Trial Group are here to help. Please contact us at 888.744.0142 or visit us online for a free consultation. The Business Trial Group is part of the largest contingency law firm in the nation, with 700 lawyers and 50 offices.
The Business Trial Group at Morgan & Morgan helps investors recover their losses on a contingency basis. We are only paid if we successfully recover money for you. We have helped investors recover tens of millions of dollars of investment losses.