Florida Woman Sentenced to 20 Years in Prison for $190.7 Million Ponzi Scheme
Johanna Michely Garcia, the former CEO of Pompano Beach-based MJ Capital Funding, LLC, was sentenced to 20 years in federal prison on Tuesday for leading a Ponzi scheme that defrauded investors of approximately $190.7 million. Along with her co-conspirators, Garcia promised high returns from merchant cash advances (MCAs) but used new investors’ funds to pay off earlier ones, resulting in nearly $90 million in losses to investors.
After the FBI and U.S. Securities and Exchange Commission shut down MJ Capital Funding in 2021, Garcia continued her fraudulent activities by launching another Ponzi scheme under different business names. Some of the victims spoke out about the devastation caused by Garcia’s actions, with one investor, Steven Shulman, expressing how he lost his trust and $50,000 to her scheme during a time when he needed investment returns the most.
Many victims detailed harrowing stories of losing their life savings, battling hunger, suicide, and depression due to their financial losses. Despite efforts to recover funds, it remains uncertain how much money will be repaid to the victims in the future.
Garcia addressed the court during her sentencing, expressing remorse to the people she had hurt, while her defense mentioned that one-third of the misappropriated funds had been recovered. In a separate case, Garcia’s co-conspirator Pavel Ramon Ruiz Hernandez was sentenced to over nine years in prison after pleading guilty in 2023.
The victims of the Ponzi scheme are facing the harsh reality that they may never fully recoup their losses. Some expressed resignation to the fact that they might never see a penny returned, admitting their struggles in seeking justice. While legal proceedings continue, the victims are left waiting for potential restitution in the future.
