UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF FLORIDA 

CASE NO. 22-20400-CR-SMITH/LOUIS 

UNITED STATEs:oF AMERICA 

vs. 

PAVEL RUIZ, 

Defendant. 

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PLEA AGREEMENT 

The United States Attorney's Office for the Southern District of Florida ("this Office") and 

Pavel Ruiz (hereinafter referred to as "Defendant") enter into tne following agreement: 

1. Defendant agrees to plead guilty to Count 1 of the Inform"ation, which count charges 

Defendant with Conspiracy to Commit Wire Fraud, in violation of Title 18; United States Code, 

Section 1349. 

2. Defendant is aware, that the sentence will be imposed by the Court after considering 

the a,dvisory Federal Sentencing Guic:lelines and lolicy Statements (hereinafter "Sentencing 

GuideHnes"). Defendant acknowledges and understands that the Court will compute an advisory 

sentence under the Sentencing Guidelines and that the applicable guidelines will be determined by 

the Court relying in part ort the results of a pre-sentence investigation by the Court's probation 

office, :which investigation will commence after the guilty plea has been entered. Defendant i~ 

also aware that, under certai'n circumstances, the Court may depart from the advisory sentencing 

guideline range that "it has ~omputed and may raise or tower that ,advisory sentence under the 

Sentencing Guidelines. Defendant is further aware and understands that the Court is required to 

considlc)r the advisory guideline range determined under the Sentencing Guidelines, but is not 

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bound to impose a sentence within that advis}ry range; the Court is permitted to tailor the ultimate 

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sentence in light of other statutory concerns, :and such sentence may be either more severe or less , I • ~ 

severe than· the Sentencing Guidelines' advisory range. Knowing these facts, Defendant 

understands and acknowledges that the Court has the authority to impose any sentence within and 

up to the statutory maximum authorized by l,aw for the offense identified in paragraph 1 and that 

Defendant may not withdraw the plea solely as a result of the sentence imposed. 

3. Defendant also understands and qcknowledges that the Court may impose a statutory 

maximum term of imprisonment of up to 20 years, followed by a term of supervised release of up 

to three (3) years. In addition to a term of imprisonment and supervised release, the Court may ' . . 

impose a fine of up to $250,000 or double the gross gain or gross loss, and must order restitution. I • 

4. Defendant further μnderstands and acknowledges that, in addition to any sentence 

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imposed under paragraph 3 of this agreemen~, a special assessment in the amount of $100 will be 

imposed on Defendant. :Oefendant agrees t'at any special assessment imposed shall be paid at 

the time of sentencing. If Defendant is financially unable to pay the special· assessment, 

Defendant agrees to present evidence to this !Office and the Court at the time of sentencing as to 

thereasons for Defendant's failure to pay. 

5. This Office reserves the right to inform the Court and the probation office of all facts 

pertinent to the sentencing process, including all relevant information concerning the offenses . I 

committed, whether charged or not, as well asi concerning Defendant and Defendant's background. 

Subject only to the express terms of any agreed-upon sentenc.ing recommendations contained in 

this agreement, this Office.further reserves theright to make any recommendation as to the quality 

and quantity of punishment. 

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6. This Office agrees that it will redomrnend at sentencing that the Court reduce by two 

levels the sentencing guideline level appli'cable to Defendant's offense, pursuant to Section 1 

3El.l(a:) of the Sentencing Guidelines, basep upon Defendant's recognition and affirmative and 

timely acceptance of personal responsibili1)[. If at the time of sentencing Defendant's offense 

level is-determined to be 16 or greater, this Office will make a motion requesting an additional one 

level decrease pursuant to Section 3E 1.1 (b) of the Sentencing Guidelines, stating that Defendant 

has assisted authorities in the investigation ;or prosecution of Defendant's own misconduct by 

timely notifying authorities of Defendant's intention to enter a plea of guilty, thereby permitting 

the government to avoid preparing for trial and permitting the government and the Court to allocate 

their resources efficiently. This Office, ho~ever, will not be required to make this motion and 

this recommendation if Defendant: (1) fails or refuses to make a full, accurate and complete 

disclosure to the probation office of the circumstances surrounding the relevant offense conduct; . I 

(2) is found to have misrepresented facts ~o the governme_nt prior to entering into this plea 

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agreement, in addition to- the misrepresentations/omissions discussed with defense counsel I 

regardh1g :(unds traceable to Chase Bank acdount ending 34~6; or (3) commits any misconduct 

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after entering into this plea agreell\ent, incluqing but not limited tq committing a state or federal 

offense, violating any term of release, or m~king false statements or misrepresentations to any 

governmental entity or official. 

7. Defendant agrees to plead guilty to Count 1 of the Information, which count charges - I 

Defendant with Conspiracy to Commit Wire ;Fraud, in violation of Title 18, United States Code, ' 

Section 1349. Defendant agrees and urtdersfands that this charge involves Defendant's conduct, 

and the conduct of others, from in or about Juhe 2020 through on or about August 12, 2021, in an 

investment fraud scheme, operated out ofMJ bapital Funding, LLC and MJ Taxes and More Inc., 

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whereby people were enticed to invest on th6 promise that their investment capital would be used 

to fund small business loans and·_ that they would be paid returns from the revenue thereby 

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generated, whenirt truth new investment c~pital was used to pay ~xisting investors. The plea 

· entered by :Oefendant pursuant to this agreement resolves Defendant's federal criminal liability in • " , I 

the Southern District of Florida growing Olft of Defendant's. criminal conduct _in the investment 

fraud associated with MJ Capital Funding, LLC and MJ Taxes and More Inc. known to the United 

· States Attorney's Office for tlie Southern District of Florida, as of the date of this plea agreement, 

including but not limited to the scheme described herein and laundering of proceeds of that scheme. ' . 

8. This Office and Defendant agre~ that, although not binding on the probation office or 

t~e Court, they will jointly recommend that _the Court make the following findings and conclusions 

as to the sentence to be imposed: 

(1). Base Offense Level: lfhatthe Base Offense Level under-Section 2B l. l(a)(l) 

of the Sentencing Guidelines is 7. 

(2). Loss: That the relevant amount of actual, probable or intended loss under 

Section 2B 1.1 (b )( 1) of the Sentencing Guidt1lines r:esulting from the offens1/ committed in this case 

is more than $25,0p0,000 but less than $65,900,000. 

(3). · That the Offense in~olved 10 or more victims and resulted in financial 

hardship to one or more victims. The offep.se level should increase by two (2) levels pursuant to 

Sentencing Guidelines Section 2Bl.l(b)(2)CA). 

' (4). Sophisticated Meansj That Defendant did not intentionally engage in or 

cause especially complex or especially intricate offense ·conduct pertaining to the execution or 

concealment of the offense to constitute soppisticated means, pursuant to Section 2B 1.1 (b )(1 0)(C) 

of.the Sentencing Guidelines. 

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(5} . Role: That Defendilljlt should not receive an adjustment for role in the ! 

offense pursuant to Sections 3B 1.1 or 3B 1.21of the Sentencing Guidelines. 

(6). Abuse of Trust and Use of Special Skill: That Defendant should not . - . I 

. receive a two-level increase pursuant to Section 3Bl.3 of the Sentencing Guidelines .. ' 

(7) That no other adjustm~mts apply. 

9. This Office and DefendanCstip\,llate to, and agree not to contest, the facts in the 

following Factual Proffer, and stipulate thatjsuch facts, in accordance with Rule ll(b)(3) of the 

Federal Rules of Criminal Procedure, providy .sufficient factual basis for the plea of g11ilty in this 

matter. Because the factual _basis set forth in the Factual Proffer has the limited purpose of 

supporting Defendant's guilty plea to the charge cited in paragraph 1, the Factual Proffer does not 

purport to represent all facts and circumstanc~s relating to Defendant's participation. The Factual 

Proffer is as follows: 

If this case had proceeded to trial, the United States would prove beyond a 

reasonable doubt that since at leasti June 2020, Co-conspirator 1 operated.• an 

investment Ponzi scheme through fylJ. Taxes and More, Inc. and. MJ Capital 

Funding LLC (hereinafter "the MJ Companies"), which _scheme utilized interstate i . . . 

wire coriuimnications, including emai;ls and electronic bank transfers. At least as 

early as March 2021, Defendantj oined Co-conspirator 1 in a conspiracy to commit I • -. 

wire fraud. : 

Under Co-conspirator 1 's rr;ianagement, the MJ Companies . solicited 

investments from the public.by offeri*g investment contracts representing that the 

inv.estor's money would be used·to fu~d small business loans called Merchant Cash 

Advances ("MCAs"). The MJ Companies' investment contracts included these 

representations: (1) guaranteed returns, typically 10% per month; and (2) 

guaranteed repayment of investment:principal. 

Defendant learned of the MJ Companies' purported investment opportunity 

through his acquaintance with Co-c~nspirator 1. After conversations with Coconspirator 1 about investing. in MCAs, Defendant entered into an investment 

c~nti-act with the MJ Companies. jrhereafter, D·efendant became involved in 

soliciting new invest9rs for the MJ O::ompanies in exchange for· the payn;ient of 

colll)'Ilissions .. Defendant became on:k of the. "Directors" in the .MJ Companies' 

hierarchy, which entailed overseeing a group of ·Managers· and. Account 

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Representatives who solicited investors and raised funds in exchange for 

commissions. 

The MJ Companies encouraged existing jnvestors to refer other investors 

by offering to pay commission for ~eferrals. · The MJ Companies also allowed 

investors to become . affiliated as : "Account Representatives" to raise new 

investment funds in exchange for cotjimissjon-based compensation, typically 10% 

per month on· the amount of funtls raised. The most · productive account 

representatives were promoted to "Managers." 

Investors were solicited in sejveral ways, including via affiliated Account 

Representatives, social media, and the MJ ·companies' website. Whatever the 

form ofthe solicitati,:m, the message was the same: .the MJ Companies would use 

the investor's money to fund MCAs that paid a high rate ofreturn, and the investor 

would receive periodic payments paid from _i't share of the returns generated by 

MCAs. ,· 

Defendant, Co-conspirator 1, 

1

and others represented to investors, directly 

and through the solicitation methods described above, that the MJ Companies' 

generated revenue from the MCA lqans to pay the commissions and returns to 

investors. It was represented to inv(;!stors that the MJ Companies specialized in 

MCA funding for businesses,· that tliere was a team of underwriters that vetted 

merchant. loan applicants, and that! defa~lts were negligible so that the MJ 

Companies could guarantee investor'$ capital. 

The representations that the MJ Companies were using investor money to 

fund MCAs, that_MCAs generated reyenue from which investor returns were.paid, 

and that investor money was secure Were lies. In fact, the MJ Companies earned 

little revenue from M CAs and, with rire exceptions, the MJ Companies did not use 

investor funds to make MCA loans; Therefore, the MJ Companies' ability to pay 

investors the promised returns and te~ayment of principal depended on their ability 

to cotiti:t;me to raise new investor motley, use the new funds raised to pay existing 

investment contracts and commission~, and conyince existing investors to roll over 

their investments irito a · new inve~tment agreement, thus . deferring the MJ 

Companies' obligation to repay investors' back their principal. 

By at least as early as Marcp 2021, _ Defendant was aware that the MJ 

Companies' representations about its iinvestment offerings were lies, and that Coconspirator 1 wa; operating a fraud I scheme at the MJ Companies. D~fendant 

willfully joined in a conspiracy with ¢a-conspirator 1 in order to continue making 

money for himself. On or about March 4, 2021, Defendant established Pavel Ruiz 

MJCF LLC, a Florida limited liability company, in order to facilitate the receipt 

and handling of fraudulently obtaine4 investors proceeds. 

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Defendant helped keep the Popzi scheme going by continuing to raise new . 

capital from investors, overseeing ~he solicitation activities of Managers and 

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Account Representatives in his group, accepting and collecting large cash 

investments, and promoting the falsJ representations of the Mi Companies as an 

investment vehicle to investors and t,:i>' Account Representatives. 

Defendant fraudulently obtai11ed, directly and indirectly through others, at 

least approximately $42,942,000 in pioceeds from investors during his involvement 

in the conspiracy, thereby causing more than $25 million in losses to investors. As 

. part of this illicit activity, Defendant .deposited or caused . to be deposited 

fraudulently obtained investor proce~ds in the following accounts: 

Institution Account Number Account Name 

JP Morgan: Chase 410633486 Pavel Ruiz 

i· Pavel Ramon Ruiz Citibank 31980024()3 Hernandez 

Citibank 349014510.5 PavelRuiz MJCF LLC , 

Citibank. 3290405412 Pavel Ruiz MJCF LLC 

Wells Fargo 144810330: Pavel R Ruiz Hernandez·· 

Venmo (a}Pavel-Ruiz-1 Pavel Ruiz 

Venmo /al.PavelRU:izMJCF · Pavel Ruiz MJCFLLC ' 

With the fraudulent proceeds he obtained, Defendant also purchased the 

following vehicle: 1 

Vehicle Descril!tion Vehicl~ Identification Title/Registered Owner· Number 

·2021 Audi RS7 WUAPCBF24MN907100 Pavel Ruiz ,, 

Defendant, who had access to the MJ Companies' bank., accounts; also 

arranged for the payments of returns to investors and commissions to those raising 

funds, including via cash payments. For this, Defendant was paid large 

commissions by the MJ Companies, jand kept and used investor· funds to pay for 

travel, luxury goods, and social outings while promoting the Ml Companies' ' lifestyle. 

10. In the event that for any reason Ji)efendant withdraws from this agreement prior to or 

after pleading guilty to the charged identifie4 in paragraph 1 above, or should this Office, in its I 

sole discretion, determine that Defendant fai\ed to fully comply with any of the provisions of this 

agreement, Defendant agrees and understands that he will forego the benefits and concessions 

contained in:this plea agreement, and waiv~ any protection afforded by Section lB 1.8 of the . I 

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Sentencing Guidelines, as w.ell as any protecti1on afforded by Federal Rules of Criminal Procedure 

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ll(f}and Federal Rule of Evidence 410. DJfendant further understands that in the event that for 

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any reason he does not plead guilty, t.he F1:actual Proffer signed by Defendant as part of this 

agreement will be fully admissible against him in ·any civil or criminal proceedings. 

11. Defendant is aware that Title +8, United States Code, Section 1291 and Title 18, 

United States Code, Section 3742 afford Defendant the right to appeal the sentence imposed in 

this case. Acknowledging this, in exchange for the undertakings made .by the United States in 

this plea agreement, Defendant hereby waives all rights conferred by Sections 1291 and 3742 to 

appeal any sentenc~ imposed, including any 1

estitution order, or to appeal the manner in which the 

sentence was imposed, · unless the sentence ~xceeds the maximum permitted by statute or is the 

result of an upward departure and/or an up"'[ard variance from the advisory guideline range that 

the Court establishes at sentencing. Defendant further understands that nothing in this agreement 

shall affect the government's right and/or duty to appeal as set forth in Title 18, United States 

Code, Section 3742(b) and Title 28, United States. Code,_ Section 1291. However, if the United 

States appeals Defendant's sentence pursuant to Sections 3742(b) and 1291, Defendant shall be 

released from the above waiver ofhis right td appeal his sentence. 

. 12. Defendant further hereby waives! all rights conferred by Title 28, United States Code, 

Section 1291 to assert any claim that (1) the statutes to which Defendant is pleading guilty is/are 

unconstitutional; and/or (2) the admitted conduct does not fall within the scope of the statute(s) of . . : . 

conviction. 

13. By signing this agreement, Defe11dant acknowledges that Defendanthas discussed the 

appeal waiver set forth in this agreement wjth Defendant's attorney. Defendant•further agrees, 

together with this Office, to request th~t the c:ourt enter a specific finding that Defendant's waiver 

of his right to appe_al the sentence imposed in ~his case and his rightto appeal his conviction in the 

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m.anner described above was knowing and v:o~untary. 

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14. Defendant agrees, in an indivjidual and any other capacity, to' forfeit to the United 

States, voluntarily and immediately, any right, title, and interest to any property, real or personal, 

which constitutes or is derived from proceeds traceable to the commission of the offense of his 

conviction in violation of Title 18, United St~tes Code, Section 1349, pursuant to Title 18, United 

States Code, Section 981(a)(l)(C). In addition, Defendant agrees to forfeiture of substitute 

property pursuant to Title 21, United States Code, Section 853(p). The property subject to 

forfeiture includes, _but is not limited to: 

a. a forfeiture money judgement in the sum of $42,942,000 in U.S. currency, 

which sum represents the value of the property that is subject to forfeiture; 

b., directlyforfeitable property and substitute property, including, but not limited 

to: 

1. All funds ori depo$it in JP Morgan Chase account number 410633486, 

held in the name of Pavel Ruiz; 

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ii. All funds on depo~it in Citibank account number 3198002403, held in 

the name of Pavel Ramon Ruiz Hernandez, or seized from this account 

on or about Septell}ber 2, 2021; -

111. All funds on deposit in Citibank account number 3490145105, held in 

the name of Pavel :Ruiz MJCF LLC, or seized from this account on or 

_ about September 2l 2021; 

iv. All funds on deposit in Citibank account number 3290405412, held in 

the nanie of Pavel Ruiz MJCF LLC, or seized from this account on or 

about September 2; 2021; 

v. All funds on deposit in Wells Fargo account number 144810330, held 

in the name of Pav~I R Ruiz Hernandez; 

v1. All funds on deposit in Venmo account @Pavel-Ruiz-I, held in the 

name of Pavel Ruiz; -

vii. All fund_s on deposit in Venmo account @PavelRuizMJCF, held in the 

name of Pavel Ruiz MJCF LLC; and 

vm. One (1) 2021 Audi RS7, bearing vehicle identification number 

WUAPCBF24MN907100. 

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15. Defendant further agr~es that (orfeiture is independent of any assessment, fine, cost, 

restitution, or penalty that may be imposed py the Court. Defendantknowingly and voluntarily 

. agrees to waive all constitutional, legal, and equitable defenses to the forfeiture, including 

excessive fines under the Eighth Amendm~nt to the United States Constitution. In addition, 

Defendant· agrees to waive: any applicable time limits for administrative or judicial. forfeiture 

proceedings, the requirements of Fed. R. Criqi. P. 32.2 and 43(a), and any appeal of the forfeiture . . ' 

16. Defendant also agrees to fully and truthfully disclose the existence, nature and 

location of all assets in which Defendant has or had any direct or indirect financial interest or 

control, and ::my assets involved in the offense of conviction. Defendant agrees to take all steps - ' 

requested_by the United States for the recovery and forfeiture of all assets identified by the United 

States as subject to forfeiture. This includes, ibut is not limited to, the timely delivery upon request 

of all necessary and appropriate documentatiqn to deliver good and marketable title, consenting to . I 

all orders of forfeiture, and not contesting 9r impeding in any way with any criminal, civil or 

administrative forfeiture_proceeding co_qcemipg the forfeiture. - ' l - . 

17. In furtherance of the satisfact~on of a forfeiture money judgment entered by the 

Court in this.case, Defendant agrees to the following: 

a. submit a financial state~ent to this Office upon request, within 14 calendar 

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days from the request; 

b. maintain any asset valu~d in excess of $10,000, and not sell, hide, waste, 

C. 

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encumber, destroy, or otfierwise devalue such asset without prior approval of • 1 

the United States; 

. provideinformation aboJtany transfer of an asset valued in excess of $10,000 

since the commencemeni of the offense conduct in this case to date; 

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d. cooperate fully in the intestiga.tion and the identification of assets, including 

liquidating assets, meet!rtg with representatives of .the United States, and 

providing any documentation requested; and 

e. notify, within 30 days, the Clerk of the Court for the Southern District of 

Florida and this Office !of: (i) any change of name; residence, or mailing 

address, and (ii) any mat~rial change in economic circumstances. 

Defendant further understands that providipg false or incomplete information about assets, 

concealing assets, making materially false st~tements or representations, or making or using false 

writings or documents pertaining to assets, ta'.king any ;:tction that would impede the forfeiture of 

assets, or failing to cooperate fully iti the investigation ·and identification of assets may be used as 

a basis for: (i)separate prosecution, including( under 18 U.S.C. § 1001; or (ii) recommendation of 

a denial ofa reduction for acceptance of responsibility pursuant to the United States Sentencing 

Guidelines § 3El. 1. 

18. Defendant recognizes that pleadfng guilty may have consequences with respect to I 

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Defendant's immigration status if Defen,dant is not a citizen of the United,Btates. Under federal 

law, a broad range of crimes are removable offenses, including the offense to which defendant is 

pleading guilty. Removal and other immigtation consequences are the subject of a separate . I . . . proceeding, howeyer; and defendant understands that no one, including Defendant's· attorney or 

the Court,, can predict to a certainty the effect of Defendant's conviction on Defendant's 

immigration status. Defendant neverthele~s affirms that Defendant wants . to plead . guilty . 

regardless of any immigration consequences that Defendant's plea may entail, even if the 

consequen~e is Defendant's automatic removal from the United States. 

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19. This is tbe entire agreement and understanding between this Office and Defendant. I -

There are no other agreements, promises, representations, (!r-understandi11gs. I -

Date: By: 

i Eric E. I " \A_ss 

Date: 

Date: By: 

JMICHAELMIRER, ESQ. 

~ANT~ 

DEFENDANT 

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