HONOLULU – A Maui accountant who led a long-running Ponzi scheme that cost his investors $8 million was sentenced Wednesday to serve nearly 12 years in federal prison without the possibility of parole.
Lloyd Y. Kimura used his business, Maui Industrial Loan and Finance Co., to attract investments since 1986, taking money collected from later customers to pay initial clients. He pleaded guilty in January.
Dressed in a white prison jumpsuit but without handcuffs, the 61-year-old apologized for his crimes.
“I’m sorry for what I’ve done, and I accept the ruling of the court,” Kimura told U.S. District Judge David Ezra.
Kimura, the brother of Hawaii County Prosecuting Attorney Jay Kimura, was ordered to repay his 50 victims the $8 million they lost.
His assets amount to only a fraction of the amount he owes, so at least 10 percent of his income must be paid to victims after he’s released from prison, Ezra said.
He was given 11 years, eight months in prison, a sentence on the high end of federal guidelines, which called for a prison term of between 10 years and 12.5 years.
Kimura’s sentence may have been higher if he hadn’t cooperated with authorities to repay his victims and accept guilt, Ezra and Assistant U.S. Attorney Ken Sorenson said.
Ezra said Kimura was motivated by “personal greed” when he lost his victims’ life savings and college savings, denying them comfortable retirements and the ability to provide educations for their children.
A Maui accountant who led a long-running Ponzi scheme that cost his investors $8 million is being sentenced to serve nearly 12 years imprisonment without the possibility of parole.
U.S. District Judge David Ezra handed down the sentence Wednesday against 61-year-old Lloyd Y. Kimura, who previously pleaded guilty.
Kimura, the brother of Hawaii County Prosecuting Attorney Jay Kimura, told the judge he’s sorry for his crimes.
Kimura used his business, Maui Industrial Loan and Finance Co., to attract investments since 1986, with money collected by later customers used to pay initial clients.
Kimura was ordered to repay his 50 victims the $8 million they lost.
His assets amount to only a fraction of the amount he owes, so his income will be garnished after he’s released from prison.
A Maui man who previously pleaded guilty to violating state financial securities laws in connection with his operation of a multi-million-dollar Ponzi scheme pleaded guilty in federal court this morning to mail fraud and bank fraud.
As part of his agreement with the federal prosecutor, Lloyd Y. Kimura, 61, of Wailuku, was to turn himself in this afternoon pending sentencing in June.
Kimura pleaded guilty today to four counts of mail fraud, two counts of bank fraud and three counts of theft of employee pension benefits.
“I took money from people I knew and did not pay them back,” he said.
Kimura faces maximum 20-year prison terms for the mail fraud and bank fraud and five-year prison terms for the theft when a federal judge sentences him in June. He faces a mandatory 20-year prison term for securities fraud when a state judge sentences him next month.
State and federal prosecutors have agreed that Kimura will serve his state and federal sentences at the same time in federal prison.
Kimura has agreed that the people who “invested” money with him lost between $7 million and $20 million.
His lawyer, Philip Lowenthal, said the U.S. Bankruptcy Court is doing the accounting to determine exactly how much each investor lost and expects to have a total figure by this summer.
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.
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.
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.
140 N Market St # 200
Wailuku, HI 96793-1732
Accountants in Wailuku, HI
Offices of Certified Public Accountants
Lloyd Y Kimura Inc Business Information
Lloyd Y Kimura Inc is a private company categorized under Accountants and located in Wailuku, HI. Current estimates show this company has an annual revenue of $1 to 2.5 million and employs a staff of approximately 10 to 19.
HQ, Branch or Single Location
Annual Sales (Estimated)
$1 to 2.5 million
10 to 19
SIC Code and Description
NAICS Code and Description
541211, Offices of Certified Public Accountants