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could earn returns of up to 30% via short-term investments in JMJ Capital, and that the investments could be easily withdrawn at the conclusion of a 30-90 day lockup period.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

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