Johanna Garcia

What the public record shows

Johanna Garcia, former CEO of MJ Capital Funding LLC in Pompano Beach, Florida, pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced in December 2024 to 20 years in prison — the statutory maximum. Her scheme took in about $190.7 million and caused more than 15,400 victims to lose nearly $90 million. Her co-conspirator, Pavel Ramon Ruiz Hernandez, was sentenced to 9 years 2 months. This is a criminal conviction — not an allegation.

The scheme

According to the U.S. Attorney’s Office for the Southern District of Florida:

• MJ Capital Funding told investors their money would fund “merchant cash advances” — short-term financing for small businesses — and promised high, steady returns.
• In reality it was a Ponzi scheme: little to no real lending occurred, and earlier investors were paid with new investors’ money.
• The operation was promoted heavily on social media, drawing thousands of ordinary retail investors into what looked like a community wealth-building opportunity.

Why we rate this 1 / 10 — Avoid

A guilty plea and a maximum 20-year sentence for a scheme that weaponized social media and community trust. “Fund small-business loans, earn fixed high monthly returns” is a recurring Ponzi template — the small-business story makes the impossible yield feel real.

Red flags this case teaches

• Fixed, high monthly returns (“10% a month”) from any lending program — real lending doesn’t pay like that reliably.
• Recruited through social media and word of mouth in a tight-knit community.
• No audited financials showing the loans actually exist.

Bottom line

Convicted and sentenced to the maximum. If an “investment” pays a fixed high return no matter what and recruits your friends, it has the shape of a Ponzi — verify the underlying loans exist before believing the yield.

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