Broward Woman Receives 20-Year Sentence for Leading $190.7 Million Ponzi Scheme

A recent case in Broward County has shed light on the consequences of financial fraud. Johanna Michely Garcia, a 41-year-old woman and former CEO of Pompano Beach-based MJ Capital Funding, LLC, has been sentenced to 20 years in federal prison for her involvement in a Ponzi scheme that defrauded investors of a staggering $190.7 million.

Garcia's fraudulent activities came to an end when she pleaded guilty to conspiracy to commit mail and wire fraud in July. The scheme, which ran from October 2020 to August 2021, involved false promises of high returns from merchant cash advances (MCAs). Instead of delivering on these promises, Garcia and her co-conspirators used funds from new investors to pay off earlier ones, resulting in nearly $90 million in losses for investors.

Following the shutdown of MJ Capital Funding by the FBI and U.S. Securities and Exchange Commission in 2021, Garcia did not cease her fraudulent activities. She went on to launch a new Ponzi scheme under different business names, further deceiving unsuspecting individuals.

Victims of the Ponzi scheme have shared their harrowing experiences following Garcia's sentencing. Steven Shulman, one of 15 investors who fell prey to the scheme, expressed his initial trust in Garcia, stating that everything seemed legitimate at first. However, as the truth unraveled, Shulman realized that he had been ensnared in a Ponzi scheme, losing $50,000 of his hard-earned money during a time when he needed investment returns the most.

Another victim, who chose to remain anonymous, revealed the devastating impact of Garcia's actions on her life and family. Many victims lost their life savings, faced financial hardship, and grappled with mental health challenges such as depression and thoughts of suicide.

Despite Garcia's apology to the victims during the sentencing, the road to recovery for those affected remains uncertain. While one-third of the misappropriated funds has been recovered by the receivership assigned to the case, victims are left wondering if they will ever see the rest of their lost investments returned.

Pavel Ramon Ruiz Hernandez, one of Garcia's co-conspirators, also faced justice for his role in the Ponzi scheme. Having pleaded guilty in 2023, Ruiz Hernandez was sentenced to over nine years in prison in September of the same year.