5G Funding and its Owner Sued By SEC Over “MCA” Business

5G Funding represented that it had a profitable MCA business. But according to a lawsuit filed against the company and its CEO by the SEC, that was far from accurate. “The Portfolio was never profitable,” the lawsuit says. “5G Funding collected the full amount due on only about 30 of the 184 merchant cash advances.”

5G Funding formed in 2021 and by mid-2023 was insolvent. The company had raised $4.5M from 23 investors. Much of those funds are alleged to have been misappropriated by 5G’s owner and were used to “pay a down payment on a home, to pay his personal gambling expenses, and to purchase cars and watches.”

The SEC has sought relief on two securities fraud counts.

The full lawsuit can be viewed here.