By Wendy Osher
A Maui businessman was sentenced today to 20 years in prison for two counts of Prohibited Securities Practice, and five years in prison for two counts of False or Misleading Financial Statements.
Lloyd Y. Kimura, 61, was also ordered to pay restitution in the amount of $8,093,907.
Judge Joseph Cardoza handed down the sentenced today in state Circuit Court on Maui.
Kimura, the former president of Maui Industrial Loan & Finance Company had entered a guilty plea, pursuant to a plea agreement he had entered with the state.
The state sentence follows an earlier sentence handed down in federal court on July 13, 2011. In the federal case, Kimura was sentenced to eleven years and eight months imprisonment for nine counts of mail fraud, bank fraud, and theft from employee benefit plan. Kimura’s state sentence of imprisonment will be served concurrently with his federal sentence.
Because of the seriousness of the offenses and the impact on the community, certain alleged violations were prosecuted in federal court while others were pursued at the state level.
The complaint filed by the state Department of the Attorney General, alleged that between June 30, 2008, to and including June 30, 2009, Kimura filed false or misleading statements and omitted statements required by law. The complaint also alleged that between February 2007 and June 2009, Kimura, in connection with the offer, sale, or purchase of any security, employed a device, scheme, or artifice to defraud another in amounts greater than $100,000.
The offenses were initially discovered through the efforts of the Department of Commerce and Consumer Affairs, Division of Financial Institutions. The discovery was followed by a joint investigation by the state Attorney General and federal law enforcement authorities.