MIAMI - Yesterday, Pavel Ramon Ruiz Hernandez, a/k/a “Pavel Ruiz,” age 30, of Broward County, Florida, was sentenced to 110 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with an investment Ponzi fraud scheme associated with MJ Capital Funding, LLC (“MJ Capital Funding”).
According to court records, beginning in March 2021, and continuing through on or about August 12, 2021, Ruiz Hernandez conspired with others to fraudulently solicit money from investors purportedly to fund MJ Capital Funding’s MCAs. Ruiz Hernandez and his co-conspirators recruited other individuals to solicit investors to invest in MJ Capital Funding’s investment offering and paid these individuals commissions, typically 10% of the funds raised. MJ Capital Funding was a Florida limited liability company with its listed place of business in Pompano Beach, Florida. MJ Capital Funding was purportedly engaged in the business of providing merchant cash advances, or MCAs, a type of short-term financing typically used by small and medium-sized businesses.
Court records also state that Ruiz Hernandez and his co-conspirators, directly and indirectly, made false statements and fraudulent representations to investors concerning the nature of the MJ Capital Funding investment and the use of investor funds. Ruiz Hernandez and others falsely told investors that their money would be used to fund MCAs and that investor returns would be paid from the profits of MJ Capital Funding’s MCA business. However, MJ Capital Funding made few MCAs and failed to earn anywhere near the profits it needed to pay the investor returns and principal promised to investors. As a result, Ruiz Hernandez and his co-conspirators paid investor returns by running a large Ponzi fraud scheme, paying existing investors using new investor funds while misappropriating millions of investor dollars for their own personal use and benefit. In his plea, Ruiz Hernandez admitted that he and his co-conspirators falsely and fraudulently obtained at least approximately $42,942,000 dollars from investors.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office, made the announcement.
This case is being investigated by FBI in Miami. The case was prosecuted by Assistant U.S. Attorney Eric E. Morales of the Southern District of Florida. Assistant U.S. Attorney Marx P. Calderón handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-20185.