United States of America v. Michael J. French

Columbia, South Carolina criminal defense lawyer represented the Defendant charged with Ponzi Scheme and Cyber Stalking

Anderson County Man Pleads Guilty to $13M Ponzi Scheme and Cyber Stalking

Michael J. French, 41, of Pendleton, pleaded guilty to operating a multimillion-dollar Ponzi scheme and to stalking two social media content creators.



Evidence put forth at the plea hearing established that French owned MJF Holdings, LLC and MJF Capital, LLC. Beginning in March 2019, through these companies, French offered promissory notes to investors that projected annual returns of 12 percent. He represented to investors that their funds would be used to provide loans to small businesses and that he had experience in the financial industry, including underwriting the loans in which the investor would be invested. French represented to investors that he would not receive compensation unless the promissory notes earned in excess of the 12 percent guaranteed to investors.



These were false representations. French paid previous investors with new investor monies because his investment product was not generating returns. This lulled investors into believing the product was successful, when, in fact, French was spending investor money to maintain a lavish lifestyle that included supporting female social media content creators by paying them thousands of dollars each month.



At one point, the content creators stopped communicating with French. He became angry with the women and began harassing them through various "burner” phone numbers and fake email accounts. French claimed that he was a sniper, had killed people, and that the police could not protect them. French traveled to one woman's home unannounced, forcing her to hide in a locked vehicle in the garage with her 2-year-old child. She called 911 as French attempted to force his way into the home. He was arrested by local police before he could reach them.



United State Chief District Judge Timothy Cain accepted French's guilty plea and will sentence him after receiving and reviewing a pre-sentence report from the U.S. Probation Office. French faces a maximum penalty of 20 years' imprisonment.



The FBI Columbia Field Office and U.S. Securities and Exchange Commission, Office of Inspector General investigated the case. Assistant United States Attorney Bill Watkins is prosecuting the case.