The Fall of Richmond Capital: A Wake-Up Call for Predatory Merchant Cash Advance (MCA) Lenders

Ah, the merchant cash advance (MCA) industry—where “helping small businesses” often translates to drowning them in debt at interest rates that would make a loan shark blush. But every good scheme has its expiration date, and for Richmond Capital Group (RCG Advances LLC, d/b/a Ram Capital & Viceroy Capital), that expiration date has officially arrived.

Richmond Capital Group, a New York-based MCA lender, has finally been hit with the kind of legal reckoning that should have come years ago. After years of preying on desperate small businesses, RCG’s principal, Jonathan Braun, is now permanently banned from the lending and debt collection industries. That’s right—banned for life. If that sounds severe, it’s because the Federal Trade Commission (FTC) doesn’t play around when you’re out here deceiving small businesses, seizing their assets, and allegedly threatening violence as a “collection tactic”.

And let’s not forget the financial consequences. In early 2024, Braun was ordered to cough up $20.3 million in restitution and penalties for his “blatantly illegal conduct” (Wonder what “blatantly illegal conduct” looks like? Court opinion about how a defendant harmed small businesses offers insights | Federal Trade Commission). Separately, in February 2024, the New York Attorney General (NY AG) secured a historic $77 million judgment against Richmond Capital, Ram, and Viceroy, effectively voiding their contracts that charged interest rates resembling a Black Friday stampede—some equivalent to 4,000% APR. Yes, you read that right: four-thousand percent. Talk about a deal!

As part of the ruling, all outstanding debts owed to these entities have been canceled. So, if you were one of the unfortunate souls trapped in their financial black hole, congratulations—you’re free. And if you’re still tangled up in an MCA nightmare, Business Debt Adjusters (BDA) is here to help you navigate your way out.

The fall of Richmond Capital Group isn’t just a headline; it’s a warning. The FTC and NY AG have effectively declared open season on abusive Merchant Cash Advance (MCA) lenders. Practices like misrepresenting loan terms, tacking on hidden fees, and exploiting legal loopholes (such as confessions of judgment) are now under intense scrutiny. And let’s be honest, for an industry that has long thrived on the fine print, this is bad news.

As a result, many MCA providers are scrambling to rework their contracts, beef up their compliance policies, and (shockingly) operate within the bounds of the law. Some are even fleeing states like New York, where regulators are aggressively enforcing usury laws. Imagine that—running from a state that dares to expect you to follow basic lending laws.

If you’re in the Merchant Cash Advance (MCA) business and haven’t been hit with a lawsuit yet, don’t pop the champagne just yet. Just because regulators haven’t knocked on your door doesn’t mean they’re not taking notes.

Numerous small-business lenders—many with names that sound like they were generated by a “Business Name Generator” (you know, the classic ‘Capital’ or ‘Funding’ LLCs)—haven’t been publicly targeted in 2024-2025. But let’s not mistake the absence of headlines for immunity. The FTC and CFPB have dedicated units focused on small business financing, and states are implementing stricter laws that require lenders to actually disclose loan terms (a revolutionary concept, apparently).

Additionally, emboldened by the Richmond Capital case, small-business owners are becoming less afraid to take legal action themselves. The rise in borrower-initiated lawsuits and state investigations means that even if regulators haven’t come for you yet, your borrowers might. And trust us, when borrowers start fighting back, the days of business-as-usual in the predatory lending world are numbered.

The message is clear: The MCA industry is on notice. If you’re an MCA lender still operating under the “old rules” (i.e., burying fees in a 40-page contract and pretending it’s a favor), you have two choices—clean up your act or prepare for the inevitable legal smackdown.

As for small-business owners, take this as a sign that the tide is turning. The regulators are finally paying attention, and the legal system is starting to catch up to the tricks of the MCA trade. If you’re currently stuck in a predatory loan, now is the time to explore your options because, as we’ve seen with Richmond Capital, justice might be slow—but it does arrive.

At Business Debt Adjusters (BDA), we specialize in helping small businesses break free from predatory lending traps. If you’re drowning in debt from an MCA loan, don’t wait for regulators to bail you out—reach out to us today. We’ll help you understand your rights, explore legal options, and take back control of your financial future.

And for the rest of the predatory lenders out there? The clock is ticking.