Report: Florida Saw Surged in Ponzi Scheme Cases in 2024
On February 17th, 2025, the Miami Herald reported that there was a surge in Ponzi scheme cases in the state in 2024. A Ponzi scheme is a form of investment fraud that is structured to pay existing investors with the funds of new investors. All Ponzi schemes will eventually collapse. Within this article, our Miami Ponzi scheme lawyer discusses the major cases in Florida in 2024.
An Overview of Four Major Ponzi Schemes that Were Uncovered in Florida in 2024
MJ Capital Funding Ponzi Scheme
MJ Capital Funding was a major Ponzi scheme that was carried out by the firm’s former CEO Johanna Garcia and that impacted many inventors in Florida. Federal prosecutors determined that nearly a $200 million Ponzi scheme ran from October of 2020 to August of 2021. Promising high returns through merchant cash advances, the company made very few legitimate loans. Instead used new investor funds to pay existing ones. Ms. Garcia misappropriated millions for her own personal use. In December of 2024, the criminal case was closed and she was sentenced to serve 20 years in federal prison.
Drive Planning Ponzi Scheme
From 2020 to 2024, Russell Todd Burkhalter—the CEO of an investment entity called Drive Planning—raised over $300 million from more than 2,000 investors. The funds were disproportionately raised from investors in Florida and they were for supposed real estate projects. Mr. Burkhalter promised an astounding ten percent rate of return every three months with minimal risk to the principal. Unfortunately, he instead operated a Ponzi scheme. New investments were used to pay back the existing investors. In August of 2024, the SEC finally intervened. An asset freeze was put in place.
Traders Domain FX Ltd. Ponzi Scheme
From November 2019 to September 2024, Traders Domain FX Ltd.—an investment project that was led by Fredirick “Ted” Safranko and David Negus-Romvari—raised nearly $300 million from investors, including many investors in Florida. They promised lucrative returns through forex and commodity trading. However, sadly, Mr. Safranko and Mr. Negus-Romvari misappropriated funds for personal use. The Ponzi scheme was officially halted in October of 2024 by the Commodity Futures Trading Commission (CFTC). Civil litigation is still ongoing by the affected investors.
Pannon Investment Advisors LLC Ponzi Scheme
Between May 2020 and January 2024, CEO Dusan Varga and Pannon Investment Advisors LLC fraudulently raised approximately $1.6 million from at least 20 investors, primarily within the Serbian-American community in South Florida. They misrepresented the use of funds, profitability, and Mr. Varga’s credentials. To keep the fund afloat, they made Ponzi-like payments and misappropriated investor funds. While not as large as the others, the Ponzi scheme is notable because it is an affinity scheme. The perpetrators used their personal connection to the Serbian-American in order to raise funds from actual and prospective investors.
Speak to Our Miami Ponzi Scheme Attorney Today
At Carlson & Associates, P.A., our Miami Ponzi scheme lawyer is a strong, experienced advocate for investors. If you suffered serious financial losses as part of a Ponzi scheme, please do not hesitate to contact us today for a fully confidential, no obligation case review. With a law office in Miami, our firm represents investors in Ponzi scheme cases throughout all of South Florida.
Source:
miamiherald.com/news/local/article300453934.html
