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Important information

• Pending Government Action:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  SEC vs Christian J Gonzalez. Case number 0:22-cv-61824 S.D. Fla.
  

  As of December 1, 2022

  
  

  This case has been closed administratively closed and the  matter is STAYED until the criminal proceedings have been resolved in case no.

  
  

  22-CR-20563.

  
  

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  As of September 27, 2022:

  
  

  The Securities and Exchange Commission charged Christian J.
  Gonzalez, a purported loan underwriter for MJ Capital Funding, LLC, for
  his role in an alleged $196 million fraud perpetrated by the company.

  
  

  The SEC previously charged MJ Capital and an affiliated
  company, MJ Taxes and More, Inc., and their principal officer, Johanna
  M. Garcia, on August 9, 2021 for allegedly engaging in a fraudulent
  securities offering and Ponzi scheme. MJ Capital and MJ Taxes are
  currently under a court-appointed receivership.

  
  

  According to the SEC's complaint against Gonzalez, which was
  filed in the federal district court in the Southern District of Florida,
  from at least February 2021 until August 2021, Gonzalez acted as MJ
  Capital's loan "underwriter" and the person responsible for its merchant
  cash advance "Funding Department." The complaint alleges that Gonzalez
  made material misstatements and omissions to MJ Capital sales agents
  during a presentation on a video conference call. Specifically, as
  alleged, Gonzalez told the sales agents that MJ Capital made 30 to 50
  merchant cash advance loans per month, the company had funded "hundreds"
  of loans to date, and almost all of the investor funds raised so far
  had been lent out to merchants. In reality, according to the complaint,
  of the $196 million raised from investors, MJ Capital only used about
  $895,000 of investor funds to make 13 cash advance loans to merchants,
  and during the entire time Gonzalez worked at MJ Capital, the company
  only made seven loans to merchants. The complaint alleges that Gonzalez
  knew his misstatements would be communicated to investors and, in fact,
  the video of the call was posted on YouTube for public viewing. The
  SEC's complaint also alleges that Gonzalez misused $200,000 in investor
  funds, which was earmarked to build a platform for underwriting MJ
  Capital's purported merchant cash advance loans, by failing to use this
  money to create the platform.

  
  

  The SEC's complaint charges Gonzalez with violating the
  antifraud and securities registration provisions of the federal
  securities laws. Specifically, the complaint alleges that Gonzalez
  violated Sections 5(a) and 5(c) of the Securities Act of 1933, and
  violated or aided and abetted violations of Section 17(a) of the
  Securities Act and Section 10(b) of the Securities Exchange Act of 1934
  and Rule 10b-5 thereunder. The complaint seeks permanent injunctive
  relief, disgorgement plus prejudgment interest, and a civil penalty
  against Gonzalez.

  
  

  LINK: https://www.sec.gov/litigation/litreleases/2022/lr25527.htm?utm_medium=email&utm_source=govdelivery

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