Miami, Florida – Twenty-nine-year-old Pavel Ramon Ruiz Hernandez has been charged in South Florida federal court with conspiring to commit wire fraud through an investment Ponzi fraud scheme linked to MJ Capital Funding, LLC (“MJ Capital Funding”).
According to the allegations in the information, MJ Capital Funding was a Pompano Beach company that offered merchant cash advances, or MCAs, a type of short-term financing typically used by small and medium-sized businesses. The information alleges that from about March to August 12, 2021, Ruiz Hernandez and his co-conspirators fraudulently solicited money from investors to fund MJ Capital Funding’s MCAs. It also alleges that Ruiz Hernandez and his co-conspirators recruited others to solicit additional investors, typically paying the recruits about 10% of the money they raised each month.
According to the information, Ruiz Hernandez and his co-conspirators lied to investors about MJ Capital Funding’s use of investor funds. For example, Ruiz Hernandez told investors that they would use the money to fund MCAs and that the profits of MJ Capital Funding’s MCA business would fund investor returns, which was not true. In fact, MJ Capital Funding made few MCAs and failed to earn anywhere near the profits it needed to pay the investor returns or principal amounts, it is alleged. As a result, the information charges that Ruiz Hernandez and his co-conspirators paid investor returns by running a large…
