MJ Capital Funding Receivership

FREQUENTLY ASKED QUESTIONS (FAQs):

How much money has been recovered?
As of June 30, 2026, the receivership estate has a balance of approximately $8 million, and the MJ Capital Wells Fargo settlement fund has a balance of approximately $21.3 million. These amounts will change as additional amounts are recovered, and expenses and fees are paid.

What is the status of the Receivership estate’s claims process and distribution plan?
The Receiver has issued over 6,200 checks to disbursed over $11.8 million to investors with allowed claims pursuant to the Court’s Order Granting Receiver’s Motion for Approval of Distribution Plan and Initial Distributions (the “Distribution Order”) that granted the Receiver’s Motion for Approval of Distribution Plan and Initial Distributions (the “Plan”), and the Court’s Order Granting Receiver’s Motion for Approval of Updated Rising Tide Distribution Schedule and Supplemental Distributions (the “Supplemental Plan”) that granted the Receiver’s Motion for Approval of Updated Rising Tide Distribution Schedule and Supplemental Distributions. There are a small handful of initial distribution checks that have not been issued because the holders of the allowed claims did not provide mailing addresses in the proof of claim forms, or have not corrected deficiencies in their change of address forms. If you submitted a change of address form for an allowed claim that is not entitled to receive an initial distribution check under the Plan or Supplemental Plan, or after you received your initial distribution check, the Receiver will review your submission at a later date and advise of any deficiencies.

The Plan and Supplemental Plan provided for initial payments for allowed claims on a pro rata basis using the Rising Tide methodology. Holders of allowed claims can look up the proposed initial distribution for their claim in Exhibit A by using their claim number. If you are a holder of an allowed claim and received no pre-Receivership disbursement, the initial distribution payment provided a 21.397% recovery of your investment amount. If you are a holder of an allowed claim and received disbursements of between 0.2% and 21.33% of your investment pre-Receivership, the initial distribution payment brought you up to the same 21.397% level of recovery. For example, if you invested $2,000 and received $200 in pre-Receivership disbursement, the $200 you received provided a 10% recovery of your investment, and the initial distribution payment of $227.94 brought you up to the 21.397% recovery level. There are over 3,683 holders of allowed claims who received pre-Receivership disbursements of 21.397% or more of their investments who did not receive a payment under the Plan or Supplemental Plan. The Receiver anticipates that many of the holders of allowed claims (but not all), including the claimants who received 21.397% or more of their investments, will receive a future distribution from the MJ Capital Wells Fargo settlement fund which is discussed below.

Please note that the foregoing addresses the Receivership estate funds and claims filed with the Receiver only. The MJ Capital Wells Fargo settlement fund and additional claims filed are discussed next.

What is the status of the MJ Capital Wells Fargo settlement fund’s claims process and distributions?

The Receiver serves as the Settlement Administrator for the MJ Capital Wells Fargo settlement fund. The settlement fund has approximately $21.3 million as of June 30, 2026. These funds are in addition to the funds in the receivership estate. Investors who did not file a proof of claim with the Receiver by the July 19, 2022 claims bar date were permitted to submit a claim to the Settlement Administrator by June 9, 2023 to request to participate in the MJ Capital Wells Fargo settlement. Investors who previously submitted a proof of claim to the Receiver by the July 19, 2022 deadline did not need to submit an additional claim to request to participate in the MJ Capital Wells Fargo settlement. A copy of the agreement, which includes the claims review and distribution procedures, can be viewed at www.mjcapitalclasssettlement.com under the Case Documents section.

Under the additional Wells Fargo claims process, claimants submitted 1,117 claim forms asserting $26.103 million. The Settlement Administrator has issued an estimated 840 rejection notices to disallow claims, including: (a) claims that are duplicative of allowed claims filed with the Receiver, (b) claims that are duplicative of claims rejected by the Receiver, (c) claims filed by claimants who received payments from the MJ Capital in excess of the amount of their principal investment, and (d) claims that fail to provide a copy of an investor agreement or any bank records in support of their claim, or are otherwise deficient. Through this claims review and reconciliation process, the Settlement Administrator has reduced the claims pool by more than $19.4 million. The reduction of the claims pool protects investors by increasing the recovery rate. The final deadlines for claimants to respond to the final batches of rejection notices and/or final determination notices occurred in July 2026.

The Settlement Administrator’s accountants are in the process of preparing the distribution schedule for the MJ Capital Wells Fargo settlement fund. Once the Settlement Administrator receives the distribution schedule, she will file a motion to approve the distribution schedule with the Court. She will also provide email notification of the motion, and the address that will be used to mail the distribution check, to all investors with allowed claims who are entitled to receive a distribution under the distribution schedule. Additional updates regarding when the motion is filed and the timing of the settlement fund distributions will be provided on this webpage.

The MJ Capital Wells Fargo settlement fund claims process is set forth in the settlement agreement, and available on the MJ Capital Class Settlement Website (www.mjcapitalclasssettlement.com/case-documents.aspx).

What is the status of Johanna Garcia’s criminal case?
Johanna Garcia was sentenced to 240 months imprisonment in October 2024 in Case No. 23-20350 by U.S. District Court Judge Jose E. Martinez. The United States of America filed an Indictment against Johanna Garcia with 29 counts for Conspiracy to Commit Wire Fraud, Mail Fraud, Wire Fraud, Money Laundering, and for Forfeiture. Johanna Garcia pled guilty to Count 1. On March 5, 2025, the government filed a Restitution Stipulation in which the parties agreed that Garcia should be held liable for $65,802,500. Johanna Garcia appealed the 240-month sentence. On March 17, 2026, the United States District Court for the Eleventh Circuit issued its decision affirming the District Court’s 240-month sentence. You can review the decision on the Court Documents page.

Will the brokers be investigated?
The Receiver has filed lawsuits against certain Board Members and over 125 promoters, which is further described in the Receiver’s interim reports available on the Court Documents page. Securities violation investigations are conducted by the Securities and Exchange Commission (“SEC”). The SEC has filed cases against Johanna Garcia, Pavel Ruiz, Christian Gonzalez, Nathalia Burgos, Christian Cuesta, Steven Fernandez and Monica O’Mealia, Erick M. Ruiz, Marco A. Rosas, Bryant Guayara, Karina N. Fernandez and Leonela M. Duarte. Criminal charges are investigated and brought by the Department of Justice, U.S. Attorneys Office. The U.S. Attorney has filed criminal actions against Johanna Garcia, Pavel Ruiz, and Christian Gonzalez.

Should I hire an attorney?
You have a right to be represented in this matter, however, we are unable to provide you legal advice.