Michael J. French, a resident of Pendleton, South Carolina, has entered a guilty plea for orchestrating a Ponzi scheme involving millions of dollars and for stalking two social media influencers. The court hearing revealed that French operated MJF Holdings, LLC and MJF Capital, LLC to offer promissory notes with the promise of 12 percent annual returns to investors. He misled investors by claiming their money would fund small business loans and assured them he had relevant financial expertise.
French falsely promised that he would only receive payment if the investments exceeded the guaranteed return rate. Instead, he used funds from new investors to pay previous ones while spending the money on personal luxuries, including supporting female social media creators financially.
After communication ceased between him and these creators, French began harassing them using fake contact methods. He made threats about his capabilities as a sniper and claimed police could not protect them. His actions escalated when he appeared at one creator's home uninvited, causing her to hide with her child and call 911. Local police apprehended French before any harm occurred.
Chief District Judge Timothy Cain has accepted French’s guilty plea and will determine his sentence following a pre-sentence report from the U.S. Probation Office. The maximum penalty French faces is 20 years in prison.
The investigation was conducted by the FBI Columbia Field Office along with the U.S. Securities and Exchange Commission's Office of Inspector General. Assistant United States Attorney Bill Watkins is handling prosecution duties.
