Broward’s wife Johanna Garcia accused of running a Ponzi scheme – CBS Miami
MIAMI (CBSMiami) – Johanna Garcia, a Broward County woman who owns MJ Capital Funding, is under investigation by the Securities and Exchange Commission.
The SEC accuses Garcia of having launched a Ponzi scheme.
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According to court documents, MJ Capital Funding has convinced more than 2,000 people to invest thousands of dollars, and in return they would typically get back 120% for six-month investments.
The company’s website says the money would be used to fund small business loans.
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But court documents this is not true. In fact, line 18 of the complaint reads, “The claims that MJ companies were using investor money to fund MCAs and that their money was safe were lies.”
“The SEC alleged in this particular case that while promising investors to take the money, invest and land and get a high rate of return, they were simply using the funds themselves or using the new funds to pay off the old funds and they were selling what the FCC believed to be a security without having the proper license and requirements and then their actions were on Friday for the original and new investors, ”attorney Dave said Weinstein, who is unrelated to the case.
But in a Change.org petition, nearly 2,000 people showed their support for Garcia, saying they invested and received all of their payments on time.
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The company’s assets have been frozen and they are expected to appear in court to defend these civil charges in early September.