The merchant cash advance industry is a dynamic and intricate landscape, teeming with various stakeholders, each playing a unique role. Amid this bustling scene, syndication has become one of the real income opportunities for all. One company has recently come under the spotlight for its controversial operations - Disruptive MCA. This Miami-based firm's story, as detailed in an in-depth, insightful article by Izzy Kapnick and Naomi Feinstein for the Miami New Times, serves as a stark reminder of the potential risks and challenges that industry stakeholders may encounter.
Disruptive MCA, a merchant cash advance firm, has been the center of investor concern since it ceased payments in December 2022, citing a computer system hack. The company is linked to Angelo Jose Sarjeant, a sport-horse enthusiast from Doral, who was previously accused by federal regulators of operating a deceptive trade scheme through another firm, Driver Loan.
Despite Sarjeant being ordered to reimburse nearly $3 million in the Driver Loan case and being permanently banned from deposit-taking, Disruptive MCA, registered under Sarjeant's wife Dayanna Delgado, continued to attract new investors, including by having a 'sharp looking website', as the article states.
The company's investment model mirrored that of Driver Loan: investors would provide their funds, which would allegedly be used to fund third-party loans or small-business cash advances.
However, many investors have reported significant losses, with some losing hundreds of thousands of dollars.
The article also brings to light the personal stories of some of the investors who have been affected by their dealings with Disruptive MCA. One investor, identified as Mark, invested more than $400,000 in the company and now fears he will not see much of it returned. Another investor, who had also invested in Driver Loan, lost tens of thousands of dollars while caring for a newborn child and a mother battling cancer.
The story of Disruptive MCA underscores the importance of regulatory oversight and due diligence in the merchant cash advance industry.
It raises critical questions about the regulatory mechanisms in place to monitor companies like Disruptive MCA, especially given the previous federal action against Sarjeant.
It also highlights the potential risks involved in investing in merchant cash advances and the need for investors to conduct thorough due diligence before handing over their funds.
The tale of Disruptive MCA serves as a sobering lesson for industry stakeholders. It underscores the importance of regulatory oversight, investor due diligence, and the potential risks involved in the merchant cash advance industry. It is a reminder that while the industry offers many opportunities, it also comes with its share of challenges and risks.
For a more detailed look at the story of Disruptive MCA and its impact on investors, I highly recommend reading the full article on the Miami New Times website. It provides a comprehensive and insightful look at the company and its dealings, offering valuable insights for industry stakeholders.
Read the full article here
The story is wild and unfortunate, but feel like there is more to it that we'll find out