FREQUENTLY ASKED QUESTIONS (FAQs):
When will I receive a distribution?
The Receiver’s team is in the process of reviewing and reconciling thousands of claims in order to safeguard victim investors against duplicative and improper claims. Over 12,900 proofs of claim were filed by the July 19, 2022 claims bar date. The Receiver has issued over 1,300 rejection notices for duplicative claims totaling over $26 million. In addition, the Receiver has issued over 2,300 rejection notices for claims that failed to account for over $7.5 million in payments received from the Receivership Entities. The Receiver will be issuing many more rejection notices for claims that fail to account for payments received and other improper claims. If you receive a rejection notice, you will have an opportunity to respond. The Receiver needs to complete the claims rejection process before she can prepare the distribution plan. The distribution plan will be subject to court approval. The Receiver is unable to provide a specific time frame as to when distributions will be made. Updates will be provided on this page to address the status of the distribution plan.
What is the status of the MJ Capital Class Settlement with Wells Fargo?
The Court entered the Final Order and Judgment Approving Settlement and Attorneys’ Fees on July 5, 2023. The Order is available in the Court Documents section. The Receiver is serving as the Settlement Administrator for the Wells Fargo settlement fund, which has approximately $20 million as of September 14, 2023. These funds are in addition to the funds the Receiver has recovered for the receivership estate that are detailed in the Receiver’s interim reports under the Court Documents section. 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 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 Wells Fargo settlement. Over 1,100 additional claims were submitted to the Settlement Administrator. The Settlement Administrator needs to complete the review and reconciliation of these additional claims, and the Receiver needs to complete the review and reconciliation of the proofs of claim filed with the Receiver, before the Settlement Administrator can determine the distribution of the Wells Fargo settlement funds. A copy of the settlement agreement, which includes the claims review and distribution procedures, can be viewed at www.mjcapitalclasssettlement.com under the Case Documents section. For additional answers to general questions regarding the Wells Fargo settlement, please review the frequently asked questions on the webpage, or you may call this toll-free number 1-844-460-2134.
What percentage of my investment will I get back?
It is too early to know the percentage. Information will be provided in the distribution plan discussed above.
Will I have to give back the money I earned as interest – even if I have not received my principal back?
The Receiver will determine and propose a distribution plan for claimants that is both fair and reasonable, and takes into account funds provided and payments received. If you have a claim pending on the claims register that has not been rejected in its entirety, you will receive notice of the distribution plan. For additional information regarding the claims administration process for the receivership estate, please review the Order Establishing Bar Date and Approving Claim Submission and Administration Procedures available in the Court Documents section. For information regarding the claims administration process for the Wells Fargo settlement fund, please review the settlement agreement available on the Case Documents section at www.mjcapitalclasssettlement.com.
How much money has been recovered?
For money recovered by the Receiver, please review the Receiver’s interim reports located on the Court Documents section. For the Wells Fargo settlement fund, the fund has approximately $20 million as of September 14, 2023.
Will Johanna face criminal charges?
The United States of America has filed an Indictment against Johanna Garcia (Case No. 23-20350) with Count 1 Conspiracy to Commit Wire Fraud and Mail Fraud, Counts 2-19 Wire Fraud, Counts 20-22 Mail Fraud, Counts 23-29 Money Laundering, and for Forfeiture. You can view the Indictment on the Court Documents section.
Will the brokers be investigated?
The receiver will be investigating various matters relating to the receivership estate. Securities violation investigations are conducted by the Securities and Exchange Commission (“SEC”). In addition to Johanna Garcia, the SEC has filed cases against Pavel Ruiz and Christian Gonzalez. Criminal charges are investigated and brought by the government. The United States of America 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.