MCA Facade Crumbles: E-Card Lending Owner Sentenced to 19+ Years for $40 Million Ponzi Scheme
- Staff Writer
- 14 hours ago
- 2 min read
First, let me say that this is not a negative reflection on MCAs/Revenue-Based Financing as a product. This is a Ponzi scheme, no matter the investment type. It is very similar to the MJ Capital case, although the total dollar amount is much smaller. With that said, let's get to the case.
The owner of a Miami-based company, E-Card Lending LLC (also known as E-Card Merchant LLC), has been sentenced to more than 19 years in federal prison for orchestrating an elaborate Ponzi scheme that defrauded over 70 investors out of more than $40 million.
The defendant, Pablo Silverio Rebollido, 47, of Miami, Florida, presented his company as a thriving Merchant Cash Advance (MCA) business to attract investor capital, but in reality, the company conducted no legitimate business.
Key Points of the Fraud Case
Detail | Description |
Defendant | Pablo Silverio Rebollido, Founder and Owner |
Entity | E-Card Lending LLC / E-Card Merchant LLC |
Scheme Timeline | August 2019 to February 2024 |
Total Losses | Over $40 Million |
Victim Count | Over 70 Investors |
Sentence | 230 Months (over 19 years) in federal prison |
Restitution | Ordered to pay $16,984,505.70 in restitution |
The Ponzi Mechanics: Disguising Fraud as MCA
The scheme's sophistication lay in its simplicity and use of a familiar industry model as a disguise.
False Promise: Rebollido fraudulently solicited funds from investors, promising high, regular monthly returns that were supposedly generated from the profits of E-Card's merchant cash advance business.
The Deception: The key deceit was that E-Card had no clients and was not actively funding merchant cash advances. There were no underlying cash flow assets generating the returns.
The Ponzi Cycle: Instead of earning profits, Rebollido operated a classic Ponzi scheme, using money from new investors to pay "returns" to earlier investors. This sustained the illusion of a profitable business until the cycle inevitably collapsed.
Misappropriation: Court documents alleged that Rebollido did not use the money to fund any business, but rather diverted millions of dollars of investor capital to finance his personal and extravagant lifestyle.
The October sentence handed down, more than 19 years in prison, highlights the severity of the financial crime and the federal government's commitment to prosecute those who use fraud to exploit investors aggressively.
