MJ Capital Investors May Face Tough Road Ahead

| By:

lawsuit over moneyThe second interim report, filed by MJ Capital’s Receiver, offered some discouraging news for investors holding out hope that the business had been legitimate all along. That is if it can even be determined who all the investors are.

“No such comprehensive investor list was located in the books and records of the Receivership Defendants,” the Receiver stated.

To date, it is believed that there were more than 5,500 total investors who invested more than $200 million altogether. The Receiver says that it has already received estimated loss claims of $150 million.

The challenge with so large a figure is that the business only has $11 million on hand even after cash has been recovered and third parties have surrendered assets. In companies comparable to what MJ Capital purported to be, a recovery of investor capital would be made possible by the gradual collection of customer receivables as the portfolio was wound down. MJ Capital, in alleged ponzi fashion, did not even have a portfolio.

What little business it did have on its books, appears to have been falsified, the Receiver states.

“The Receiver’s ongoing investigation continues to indicate that many of the MCA agreements are forgeries where the supposed customer never signed any document and never received from or paid to the Receivership Defendants any money.”

Many of the affected investors placed their life savings into MJ Capital, the Receiver has learned.

The SEC and MJ Capital’s former CEO, Johanna Garcia, are scheduled to attend Court-ordered mediation on February 28, 2022.

Last modified: January 31, 2022

Category: Legal Briefs

Home Legal Briefs › MJ Capital Investors May Face Tough Road Ahead