Juan Miguel López, the owner of Mito Financial LLC in Addison and affiliated companies, was arrested May 10 and faces charges of securities fraud, theft of property, and money laundering for allegedly defrauding individuals who invested millions of dollars in his companies. López had been indicted by a Dallas County grand jury.
The indictment alleges that López sold investment contracts issued by Mito Bank, Mito Capital LLC, Mito Financial LLC, and Mito Group. The companies were supposed to use the money to finance small business loans, which would generate revenue for investors.
López promised that Mito had the ability to pay investors monthly interest of 3% to 8%.
López operated a Ponzi scheme, according to the indictment. He made interest payments to some investors with money from other individuals who purchased investment contracts.
In October and November 2015, López sent interest checks to investors that were returned unpaid for insufficient funds. Mito did not earn enough interest and income from its operations to pay returns to investors, according to the indictment.
The Dallas County District Attorney's office is prosecuting López with assistance from the Texas State Securities Board.