Tag: lloyd kimura

December 25, 2010 General Ag News and Notes Post a Comment

Maui businessman accused of Ponzi scheme charge

State prosecutors have charged a Maui businessman accused of running a Ponzi scheme with two counts of making false or misleading financial statements and two counts of prohibited securities practices.

The state attorney general’s office said Thursday that Maui Industrial Loan & Finance Co. President Lloyd Kimura filed false or misleading statements in documents for his company.

It also alleges he defrauded two couples of at least than $100,000.

Maui Industrial has filed for Chapter 7 bankruptcy. Kimura has filed for personal bankruptcy.

Maui Industrial’s bankruptcy trustee has sued 25 of the company’s investors to recover funds, alleging the money they received was the fruit of a Ponzi scheme.

Kimura could not immediately be reached for comment.

Maui businessman accused of Ponzi scheme charged – Hawaii News – Staradvertiser.com

December 24, 2010 General Ag News and Notes Post a Comment

Charges filed against Maui businessman

WAILUKU – The state attorney general has charged Maui businessman Lloyd Kimura with two counts of prohibited securities practice and two counts of making false or misleading financial statements.

The complaint was announced in a news release Thursday evening. It had been filed in 2nd Circuit Court on Monday.

Kimura’s attorney, Phil Lowenthal, said he had been talking with prosecutors for months to reach a settlement in the collapse and bankruptcy of Kimura’s businesses.

Kimura waived a grand jury, so the charges were presented as an information, not an indictment.

Kimura, 61, is president of Maui Industrial Loan & Finance Co. and for many years operated Lloyd Y. Kimura Inc., a certified public accounting firm.

The complaint alleges that between June 30, 2008, and June 30, 2009, Kimura filed false or misleading statements and omitted statements required by law on behalf of Maui Industrial Loan. These had been filed with the Financial Institutions Division of the Department of Commerce and Consumer Affairs.

The complaint also alleges that between February 2007 and June 2009, Kimura, in connection with the offer, sale or purchase of any security, employed a scheme to defraud people in amounts greater than $100,000.

Prohibited securities practice is a class A felony with a maximum penalty of 20 years or a fine of $50,000 or both. Making false financial statements is a class C felony with a maximum penalty of five years or a fine of $20,000 or both.

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October 22, 2010 General Ag News and Notes Post a Comment

Lawsuit claims Maui Industrial Finance was a Ponzi scheme

Dane Field, the trustee in the Maui Industrial Finance Co. bankruptcy, is suing 25 investors in the company to recover money they received as interest over and above their original investment or deposit, claiming the money was not really interest but the fruits of a Ponzi scheme.

Field’s attorney, Bradley Tamm, said Maui Industrial’s owner, Lloyd Kimura, acknowledged during depositions earlier this year that he had used money from late investors to pay off early investors, without really generating income from operations.

This is the definition of a Ponzi scheme, said Tamm. The supposed business – in this case, a loan company also known as Maui Finance – does little or no real business but simply takes money from new investors (or depositors) and uses it to pay interest or dividends to previous investors (or depositors).

At Maui Finance, people turned over cash to Kimura – in one case, $2 million – expecting to receive interest well above what commercial banks were paying on certificates of deposit.

In the creditors’ meetings after the bankruptcy, some people said they thought they were making deposits in a banklike institution. In 2009, the state Division of Financial Institutions ordered Maui Finance to stop taking deposits, and the business collapsed.

Tamm said that in depositions, Kimura admitted that he had been operating a Ponzi scheme almost from the day he became sole owner of the company around 1985.

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February 12, 2010 General Ag News and Notes Post a Comment

Maui businessman owes $23.8M following 2 bankruptcies – Pacific Business News

The owner of a Maui financial services loan company filed for personal bankruptcy the same day as his company, claiming nearly $23.8 million in unsecured debt.

Lloyd Y. Kimura’s Chapter 7 filing late last month came on the same day as his company, Maui Industrial Loan & Finance Co., also filed for Chapter 7

Much of the unsecured liability Kimura listed — $16.2 million — is duplicated in Maui Industrial Loan & Finance’s filing with the U.S. Bankruptcy Court.

The Wailuku-based firm ran afoul of state regulators last year and was ordered by state Commissioner of Financial Institutions Nick Griffin to cease taking deposits or borrowing money.

Maui businessman owes $23.8M following 2 bankruptcies – Pacific Business News (Honolulu):

February 10, 2010 General Ag News and Notes Post a Comment

New suit over isle CPA, firm seeks millions – The Maui News

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Complaint claims Kimura used account access to loot couple
By HARRY EAGAR, Staff Writer

POSTED: February 10, 2010

WAILUKU – Another creditor has filed a million-dollar lawsuit against Wailuku certified public accountant Lloyd Kimura. Unlike previous claims, this one also names his accounting firm, Lloyd Y. Kimura CPA.

Kimura filed for bankruptcy two weeks ago, listing debts of about $23 million. His wholly-owned industrial loan company, Maui Finance, also filed for bankruptcy.

Among the creditors in both bankruptcies were Ronald and Miriam Jacintho, owners of Rojac Trucking, Rojac Construction and Jacro Lowbed Services, who were listed as $1 million creditors of Maui Finance. In their lawsuit filed earlier this month in 2nd Circuit Court, they claim their losses were higher, although the complaint did not disclose the total.

This complaint, filed for the Jacinthos and their Dairy Road Property LLC by attorney Lyle Hosoda, differs from other lawsuits by also alleging that Kimura, as their accountant, had access to their accounts and looted them.

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January 29, 2010 General Ag News and Notes Post a Comment

Lawsuits, foreclosures, other issues trail isle CPA – The Maui News

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WAILUKU – Certified public accountant Lloyd Kimura is facing a flood of lawsuits for unpaid loans, foreclosures and for claims of mismanagement by buyers of a commercial condominium he developed and managed in the Wailuku Industrial Park.

Neither Kimura nor his lawyer, Phil Lowenthal, returned phone messages seeking comment.

In November, the state Division of Financial Institutions ordered Maui Industrial (also known as Maui Finance, or MILFCO) to stop taking deposits. Kimura has owned and managed Maui Finance since 1969.

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