UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

Case N o.

18 U.S.C. j 1349

18 U.S.C. j 981(a)(1)(C)

UN ITED STA TES O F A M ER ICA

VS.

PAVEL RAM ON RUIZ HERNANDEZ,

a/k/a Etpavel Ruiz,''

D efendant.

/

INFORM ATION

The United States Attorney charges that:

GENER AL ALLEGATIONS

At al1 times relevant to tllis Information:

R elevant Term s

also called an GGM CA,'' is a form of altem ative

tinancing that provides a business fast access to ftznds based on their previous incom e or sales. An

M CA com pany typically provides the client business, referred to as a tçm erchant,'' upâont

financing in exchange for a portion of the m erchant's futtzre receivables at a discotmt or fixed

A tûmerchant cash advance,''

periodic payments taken directly from the merchant's bank accotmt. M CA financing is typically

used by small and m edium -sized businesses in need of short-term financing. Although M CA

financing is often m ore expensive than traditional sm all business loans, it is often faster and easier

to obtain.

A Gs onzi'' or ''Ponzi schem e'' is an investm ent f'raud schem e that involves the

paym ent of claim ed returns to existing investors from ftmds contributed by new investors. Ponzi

22-20400-CR-SMITH/LOUIS

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scheme organizers often solicitnew investors by prom ising to investfunds in opportunities

claimedto generateltigh returnswith littleorno risk. lnm anyPonzischem es,theparticipants

focusonattractingnew investm entstom akeprom isedpaym entstoearlier-stageinvestorstocreate

thefalseappearancethatinvestorsareprofitingfw m alegitimatebusiness.Ponzischem esrequire

aconsistentflow ofnew investorfundstocontinueandtendtocollapsewhenitbecomesdifficult

toobtainsufficientnew investorfundsorwhenalargenllmberofinvestorsaskfortheirinvestment

principalback.

TheDefendantand theRelevantEntities

MJCapitalFunding,LLC (EIMJCapital'')wasaFloridalimitedliabilitycompany

withitslistedplaceofbusinessinPompanoBeach,Florida.Co-conspirator1fotmdedM JCapital

inoraround Jtme2020.

PavelRuizMJCF LLC (lGpavelRuiz MJCF'')wasaFloridalimited liability

company with itslisted place ofbusinessin Plantation,Florida. DefendantPA'VEL RAM ON

RUIZ H ERNANDEZ,a/k/aRPa#eIRuizr''foundedPavelRuizM JCF in orarotmdM arch 2021

4.

andwasitssolem ember.

5. Co-conspirator 1, a resident of Broward County,Florida,was an authorized

member,andthePresidentandChiefExecutiveOfficer(G:CEO'')ofMJCapital.Co-conspirator

1 exercised ultimate control over the operations of M J Capital and m aintained significant

involvementinthecompany'sdaily operations.

PAVEL RAM ON RUIZ H ERNANDEZ,aresidentofBrowardCounty,Florida,

helpedCo-conspirator1managetheoperationsofM JCapital.

Case 1:22-cr-20400-RS Document 1 Entered on FLSD Docket 08/30/2022 Page 2 of 11
COUNT 1

Conspiracy toCom m itW ireFraud

(18U.S.C.j1349)-

The General Allegations section of this Information is realleged alld fully

incorporatedhereinbyreference.

2. From atleastasearly asin oraround M arch 2021,andcontinuingthrough on or

aboutAugust12,2021,inM iami-DadeandBrowardCounties,intheSouthernDistrictofFlorida,

andelsewhere,thedefendant,

PAVEL RAM ON RIJIz H ERNANDEZ,

a/k/adpavelRuiz''

didwilfully,thatis,withtheintenttofurthertheobjectoftheconspiracy,andknowingly

combine,conspire,confederate,and agree with Co-conspirator 1,and with otherslcnown and

llnknowntotheUnitedStatesAttorney,toknowingly,andwiththeintenttodegaud,devise,and

intendtodevise,aschem eandartificetodefraud,andto obtainm oney andpropertybym eansof

m ateriallyfalseand âaudulentpretenses,representations,andprom ises,knowingsuchpretenses,

representations,and prom ises were false and fraudulentwhen made,and forthe purpose of

executingsuchschem eandartificetodefraud,didknowinglytransm itandcausetobetransm itted,

by m eansofwire com mtm icationsin interstateand foreign comm erce,certain m itings,signs,

signals,pictures,andsolm ds,inviolationofTitle18,UnitedStatesCode,Section 1343.

PurposeoftheConspiracv

ltwasa purpose ofthe conspiracy forthedefendantand hisco-conspiratorsto

unlawfulyemichthemselvesby:(a)inducinginvestorstoinvestinMJCapitalthzoughmaterialy

false and fraudulentrepresentations and promises concerning the nature of the M J Capital

investm ent,thefinances,operation,andprofitabilityofM JCapital,atldtheuseofinvestorfunds;

3

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(b)divertinginvestorf'undstobankaccountsundertheircontrol;and(c)usinginvestorfundsfor

theirownpersonaluseatldbenefit,andtom akepaymentstoearlierinvestors.

M annerandM eansoftheConspiracv

The naanner and naeans by yvhich the defendant and his co-conspirators sought to

accomplishthepurposeandobjectoftheconspiracyincluded,nmongothers,thefolowing:

4. M J Capitalpurportedly engaged in the business of providing m erchant cash

advances(MCAs)tobusinessesinFloridaandthroughouttheUnitedStatesinexchangeforagreed

uponperiodicpaym entsoveraspecifiedperiodoftim e.M JCapitalpromoteditsM CASasashortterm ,high-cost,altem ativefinancingsolutionforsm allmldm edillm -sizedbusinessesthatneeded

fastup-frontfunding.

PAVEL M M ON RUIZ H ERNANDEZ and his co-conspirators,directly and

indirectly,fraudulently solicited money from investorspup ortedly to fund M JCapital'sM CAS

byfalselypromisingsignificantrettums,typicaly10% permonth(annnnualrateof120?/4.

PAVEL R AM ON RUIZ HERNANDEZ and his co-conspirators,thzough M J

Capital,falsely and fraudulently claim ed that M J Capital's investment offerings permitted

investors to Glptzrchase''aportion ofm erchants'futtlre receivables. M J Capitalinstructed its

personnelandaffiliatestousethetenniGmerchatlt''insteadofl<borrower,''tûorderpaym ent''instead

of<çloan nmount''or G1Pdncipal,''ç;Purchaser''instead ofGûinvestor,''and &GPurchase offutlzre

!

receivables''insteadofGtinvestm ent.''

PAVEL M M ON RUIZ HERNANDEZ and lzisco-conspirators,directly and

indirectly,recruitedindividualstosolicitinvestorstoinvestinM JCapital'sinvestm entoffelings

atvariouslocationsinM iam i-DadeandBrowardCounties,intheSouthernDistrictofFlorida.As

pal'toftheefforttoraiseadditionalinvestorf'unds,PAVEL R AM ON RUIZ TTERNANDEZ and

4

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hisco-conspiratorsincentivizedtheseindividualsbyofferingandpayingsubstantialcomm issions,

typicaly10% permonthofthenmolmtofinvestorfundsraised(annnnualrateof12014.

Persons raising ftm ds for M J Capital were called Gaccount representatives.''

Successfulaccountrepresentativescould.bepromoted to Gtmanagers.'' Accountrepresentatives

andm anagerswereorganizedintogroupswithinM JCapital,witheachgroupoverseenbyattboard

m em ber.''PAVEL M M ON RUIZ HERNANDEZ w asaboardm em berofM JCapital.

9. To induce investors to invest in M J Capital, PAVEL RAM ON RUIZ

H ERNANDEZ and his co-conspirators,directly and indirectly, made materially false and

fraudulentstatem entsand representationsto investorsconcerning the natureofthe M JCapital

investment,thefinances,operation,andprofitabilityofM JCapital,andtheuseofinvestorfunds,

including,am ongothers,thefollowing:

M ateriallvFalseRepresentations

(a) thattheinvestor'smoneywouldbeusedtofundMJCapital'sMCAS,'

(b) thatinvestorreturnswouldbepaidfrom theprofitsofMJCapital'sMCAbusiness;

thatM JCapitalhadaminimalrateofdefaultonitsM CASandthatithadasystem

in place to collectpaymenton the M CAS,including using tmderwritersto vet

m erchantssoliciting loans,liensto sectlreloans,and lawyersto collectpayment

whennecessary;and

(d). thatMJCapital'sMCA businesswassufficientlyrobustandprofitabletobethe

solzrceoftheinvestorrettlrnsandtoguaranteeinvestors'capital.

PAVEL R AM ON RUIZ HERNANDEZ,his co-conspirators,and others,on

behalfofM J Capital,provided and entered into written investmentagreem entswith investors.

Case 1:22-cr-20400-RS Document 1 Entered on FLSD Docket 08/30/2022 Page 5 of 11
Theseinvestmentagreem entsm ademateriallyfalseandf'raudulentstatementsandrepresentations

toinvestors,includingconcerningtheuseofinvestorfundsandthesourceofinvestorretum s.

Based on false and fraudulent representations, PAVEL RAM ON RUIZ

HERNANDEZ received andcollectedM JCapitalinvestorfundsin cash anddepositsviacheck

and electronic bnnk transfers,including interstatewire communicationspinto various accotmts,

includingPavelRuizM JCF'Sbankaccounts,.

Notwithstanding PAVEL RAM UN RUIZ HERNANDEZ and lis coconspirator's false and fraudulentrepresentationsto investorsregarding the nature ofthe M J

Capitalinvestm ent,thefinances,operation,andprofitabilityofM JCapital,andtheuseofinvestor

funds,M JCapitalonlyfundedafew M CASandfailedtoealm anywherenea.rtheprofitsitneeded

topaytheinvestorreturnsandprincipalprom ised investors.Asaresult,RUIZ HERNANDEZ

and hisco-conspiratorspaid investorreturnsby nmning alargePonzischem e,paying existing

investorsusingnew investorfunds.

W hile continuing to solicit new investm ents, PAVEL RAM ON RUIZ

TTERNANDEZ and llisco-conspiratorsmisappropdated existingM JCapitalinvestorflndsfor

theirownpersonaluseand benefit. In fact,RUIZ H ERNANDEZ m isappropdated m illionsof

dollarstopay for,nmong otherthings,personalexpenses,luxurygoods,vehicles,vacations,and

x entertainm ent,andtom akepersonalinvestm ents.

14. PAVEL RAM UN RUIZ HERNANDEZ andl'lisco-conspizatorsneverinformed

M JCapitalinvestorsthatthey divertedinvestorfundsfortheirown personaluseandbenefitand

to pay investor rettzrns. Instead,RUIZ HERNANDEZ and his co-conspirators falsely and

fraudulentlyrepresentedtoinvestorsthatinvestm entfundswerebeingusedtofundM CA loans.

15. AsaresultofPAVEL'R AM ON RUIZ HERNANDEZ'Sandhisco-conspirators'

6

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m aterialm isrepresentationsregardingtheprofitabilityofM JCapital'sM CA businessandtheuse

ofinvestorfunds,from in oraround M arch 2021,through in oraround August2021,RUIZ

HERNANDEZfalselyandfraudulentlyobtainedatleastapproximately$42,942,000dollarsfrom

retailinvestorsintheSouthern DistrictofFloridaandelsewhere.

Al1inviolation ofTitle18,UlzitedStatesCode,Section 1349.

FORFEITURE

(18U.s.C.j981(a)(1)(C))

TheallegationsofthisInformationareherebyre-allegedandbythisreferencefully

incorporatedhereinforthepurposeofallegingforfeituretotheUnitedStatesofAm ericaofcertain

propertyinwhichthedefendant,PAVEL RAM ON RUIZ HERNANDEZ,hasaninterest.

Upon conviction ofaviolation ofTitle 18,United StatesCode,Section 1349,as

allegedin thisInformation,thedefendantshallforfeitto theUnited Statesany property,realor

personal,whichconstitm esorisderivedfrom proceedstraceabletosuchoffense,ptlrsuanttoTitle

18,UnitedStatesCode,Section981(a)(1)(C).

Thepropertysubjecttoforfeitmeasaresultoftheallegedoffenseincludes,butis

notlimitedto,thefollowing:

a. A forfeituremoneyjudgementinthesum of$42,942,000inU.S.currency,

whichs'lm representsthevalueofthepropertythatissubjecttoforfeiture;

Al1ftmdson depositin .TP M organ Chaseaccotmtnumber410633486,held

inthenameofPavelRuiz;

A1lfunds on depositin Citibnnk accountnllm ber3198002403,held in the

nnm e ofPavelRamon Ruiz Hernandez,orseized from thisaccotmton or

aboutSeptember2,2021;

A11funds on depositin Citibank accountnllmber3490145105,held in the

nnme ofPavelRuiz M JCF LLC,orseized f'rom this accounton orabout

September2,2021;

Case 1:22-cr-20400-RS Document 1 Entered on FLSD Docket 08/30/2022 Page 7 of 11
A11fundson depositin Citibank accotmtnumber3290405412,held in the

nam e ofPavelRuizM JCF LLC,orseized from thisaccounton orabout

September2,2021;

Al1fandsondepositin W ellsFargoaccotmtnllm ber144810330,heldinthe

nam eofPavelR RuizHernandez;

A1fundsondepositinVenmoaccount@pavel-luiz-l,heldinthennmeof

PavelRuiz;

h. Al1ftmdsondepositinVenmoaccount@Pave1RuizMJCF,heldinthename

ofPavelRuizM JCFLLC;and

One (1) 2021 Audi RS7, beming vehicle identification ntzmber

W UAPCBF24M N907100.

lfanyofthepropertysubjecttoforfeiture,asaresultofanyactoromissionofthe

defendant:

a. cnnnotbelocatedupontheexerciseofduediligence;

b. hasbeen transferredorsoldto,ordepositedwith,athirdparty;

hasbeenplacedbeyondthejtlrisdictionofthecourt;

d. hasbeen substantially diminishedinvalue;or

hasbeen comm ingledwithotherpropertywllich cannotbedividedwithout

difficulty,

theUrlited StatesshallbeentitledtoforfeitureofsubstitutepropertyundertheprovisionsofTitle

21,UnitedStatesCode,Section853û$.

8

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Al1plzrsuanttoTitle18,UnitedStatesCode,Section981(a)(1)(C)andtheproceduresset

forthinTitle21,UnitedStatesCode,Section853,asincop oratedbyTitle28,UnitedStatesCode,

Section2461(c)

.

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JU 'AN TOM N Z EZ ,

UM ED STAT S ATTORN EY

k (1a

ERIC E.M OR AI,ES

A SSISTAN T U .S.ATTORNEY

9

Case 1:22-cr-20400-RS Document 1 Entered on FLSD Docket 08/30/2022 Page 9 of 11
UNITED STATESDISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

UNITED STATESOF AM ERICA CASE NO.:

PAVELRAMON RUIZHERNANDEZ,

a/k/a''PavelRuiz,''

/

Defendant.

CourtDivision(selectone)

Z Miami EIKeyW est D FTP

ID FTL IZIW PB

1doherebycertifythat:

1. Ihavecarefully considered the allegationsoftheindictm ent,thenum berofdefendants,thenum berofprobable

witnessesandthelegalcomplexitiesofthelndictment/lnform ationattachedhereto.

CERTIFICATE OF TRIAL ATTORNEY*

SupersedingCaseInformation:

New Defendants)(YesorNo)

Num berofNew Defendants

TotalnumberofNew Counts

1am awarethattheinformationsuppliedonthisstatementwillberelieduponbytheJudgesofthisCourtinsetting

theircalendarsandschedulingcriminaltrialsunderthemandateoftheSpeedyTrialAct,Title28U.S.C.j3161.

lnterpreter:(YesorNo)No

Listlanguageand/ordialect:

TMscasewilltake 0 daysforthepadiestotry.

Pleasecheck appropriatecategoryandtypeofoffenselistedbelow:

(Checkonlyone) (Checkonlyone)

I Z Oto 5days IZIpety

11 lZ'l6to10days EIM inor

III EI11to20days L.M isdemeanor

IV E121to60days z.Felony

V IQ61daysandover

HasthiscasebeenpreviouslyfiledinthisDistrictCourt?(YesorNo)No

lfyes,Judge CaseNo.

Hasacomplaintbeenfiledinthismatter?(YesorNo)No

lfyes,M agistrateCaseNo.

8. DoesthiscaserelatetoapreviouslyfiledmatterinthisDistrictCourt?(YesorNo)No

Ifyes,Judge CaseNo.

9. Defendants)infederalcustodyasof

10. Defendants)instatecustodyasof

11. Rule20from the Districtof

12. Isthisapotentialdeathpenaltycase?(YesorNo)No

l3. Doesthiscaseoriginatefrom amattèrpendingintheNorthernRegionoftheU .S.Attorney'sOffice

priortoAugust8,2014(Mag.JudgeShaniekM aynard?(YesorNo)No

Doesthiscaseoriginatefrom amatterpendingintheCentralRegionoftheU.S.Attom ey'sOffice

priortoOctober3,2019(Mag.JudgeJaredStrauss?@ esorNo)No

*'

By: JAJW ô 1. ?

EricE.M orales

AssistantUpitedStatesAttorney

FLA BarN o. 1010791

Case 1:22-cr-20400-RS Document 1 Entered on FLSD Docket 08/30/2022 Page 10 of 11
UNITED STATESDISTRICT COURT

SOUTH ERN DISTRICT OF FLORIDA

PENALTY SHEET

Defendant'sNam e: PAVEL RAM ON RUIz H ERNANDEZ,a/lt/adtpavelRuiz''

CaseNo:

Cotmt#:

Title 18.United StatesCodesSection 1349

ConspiracvtoComm itW ireFraud

*M ax.Term ofIm prisonm ent: 20years

*MandatoryMin.Term ofImprisonment(ifapplicable): N/A

*M ax.SupervisedRelease: 3years

*M ax.Fine: $250,000fmeortwicethegrosslossnmount

RR efersonly topossibleterm ofincarceration,supervised releaseand fines. Itdoesnotinclude

restitution,specialassessm ents,paroleferm s,orforfeituresthatm ay beapplicable.

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