Michael J. French, a 41-year-old resident of Pendleton, South Carolina, has entered a guilty plea in connection with a Ponzi scheme that defrauded investors of $13 million and for cyberstalking two social media content creators. The plea was heard in Columbia, where evidence revealed that French operated through his companies, MJF Holdings, LLC and MJF Capital, LLC.
Starting in March 2019, French solicited investments by offering promissory notes with an annual return of 12 percent. He assured investors that their funds would support small business loans and claimed expertise in financial services. Investors were told that he would only receive compensation if returns exceeded the promised 12 percent.
These assurances were false. Instead of generating legitimate returns, French used new investor funds to pay previous investors while misappropriating money for personal use. His expenditures included substantial payments to female social media content creators.
When these individuals ceased communication with him, French resorted to harassment using anonymous phone numbers and email accounts. He made threats claiming he was a sniper who had committed murders and asserted police could not offer protection. One incident escalated when French arrived at a woman's residence unannounced, prompting her to seek refuge with her child in a locked vehicle while calling law enforcement. Local authorities apprehended him before he could cause harm.
Chief District Judge Timothy Cain accepted the guilty plea from French and will determine his sentence after reviewing a pre-sentence report from the U.S. Probation Office. The charges carry a maximum sentence of 20 years in prison.
The case investigation involved the FBI Columbia Field Office and the U.S. Securities and Exchange Commission's Office of Inspector General. Assistant United States Attorney Bill Watkins is leading the prosecution.