Tr?id=566623520170033&ev=PageView&noscript=1

SEC Charges California Advisory Firm with Operating a Ponzi-Style Scheme

Posted on October 20th, 2022 at 12:49 PM
SEC Charges California Advisory Firm with Operating a Ponzi-Style Scheme

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged JMJ Capital Group and its president, Richard Ramirez, with fraudulently raising millions of dollars from California-based investors.

According to the SEC, the defendants informed potential investors between 2019 and 2021 that they could earn returns of up to 30% via short-term investments in JMJ Capital, and that the investments could be easily withdrawn at the conclusion of a 30-90 day lockup period. The defendants additionally represented that their capital would be used to purchased receivables and personal protective equipment (PPE), according to the SEC. However, investors struggled to withdraw their investments while the defendants misappropriated investor funds to repay earlier investors in Ponzi-style fashion.

The SEC’s complaint alleged that Ramirez used the stolen money to cover personal expenses as well as to fund the purchases of luxury automobiles, trips to Hawaii, and tickets to Disneyland and Legoland. The defendants generated millions from at least forty California-based investors by making the false representations, according to the SEC. Furthermore, the U.S. Attorney’s Office for the Southern District of California has filed criminal charges against Ramirez and JMJ Capital in a parallel action.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

1782150000 Law
June 22, 2026
Illinois Regulators Accuse "Mr. Finance" of Operating Unlicensed Investment Scheme

Illinois securities regulators have accused a Chicago-area businessman known as "Mr.

1781893504 Law
June 19, 2026
FINRA Suspends Former Stifel Rep for Undisclosed Customer Settlements

The Financial Industry Regulatory Authority (FINRA) has suspended a former Stifel representative for three months and imposed a $10,000 fine after finding that she settled customer complaints without notifying her firm and conducted securities-related communications through an unapproved personal device.

1781798110 Law
June 18, 2026
Silver Star Properties REIT Files for Chapter 11 Bankruptcy Amid Mounting Defaults and Investor Losses

Silver Star Properties REIT, a publicly registered nontraded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., has filed for Chapter 11 bankruptcy protection, according to reports by AltsWire.