SEC Charges Two Florida Firms and Principal Officer Over Alleged Ponzi Scheme

Posted on August 27th, 2021 at 12:47 PM
SEC Charges Two Florida Firms and Principal Officer Over Alleged Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Commission Exchange (SEC) has been granted a temporary restraining order (TRO) as well as an asset freeze against Florida resident Johanna Garcia along with two entities she owns. The SEC’s complaint, which was filed in federal court in the Southern District of Florida, alleges that Garcia used her entities, MJ Capital Funding LLC as well as MJ Taxes and More Inc., to perpetrate a Ponzi scheme and misappropriate investor funds. Garcia and her entities raised nearly $70 million in funds from at least 2,150 investors through a fraudulent securities offering, according to the complaint. 

The complaint further alleges that Garcia informed investors that offering proceeds would be used to fund small business loans known as “merchant cash advances” while promising investors annual returns of 120-180%. Nevertheless, the defendants only managed to raise $2.9 million in merchant cash advance loans as well as even less revenue. The defendants instead utilized nearly $20 million of investor funds to pay returns to previous investors, according to the complaint. The complaint additionally alleges that the defendants fraudulently paid $27.4 million of investor funds to other unassociated entities, including large payments to sales agents for promoting these investments. 

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

Tags: eccleston, eccleston law, sec, ponzi scheme

Return to Archive



Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.


May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.


May 15, 2024
NFA Issues Order Against Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.