SEC Charges South Carolina Resident with Operating $20 Million Ponzi Scheme

Michael J. French, a 40-year-old from Pendleton, South Carolina, was recently charged by the Securities and Exchange Commission (SEC) for defrauding investors and misappropriating millions of dollars.

French and his companies, MJF Holdings, LLC and MJF Capital, LLC, allegedly sold high-yield promissory notes, falsely claiming they were backed by a low-risk investment program that loaned to small businesses or invested in commercial loans. In reality, the lending program was fraudulent, and French used the funds to repay earlier investors and fund a lavish lifestyle.

The SEC has filed a complaint against French and his companies and seeks permanent injunctive relief, an asset freeze, an accounting, disgorgement of all ill-gotten gains plus prejudgment interest, and civil penalties.

French was also arrested in Fort Myers, Florida on March 6 for charges of aggravated stalking, intimidation, written/electronic threat to kill bodily harm, obstruction of justice, and fraud. According to the police report, French stalked a woman he met through TikTok, and the woman received a subpoena in reference to an active SEC investigation in which French was listed as a suspect for fraud.