Plea Agreement Reached in Maui Securities Fraud caseDecember 28, 2010, 1:03 PM HST · Updated December 28, 3:48 PM 0 Comments
By Wendy Osher
A Maui man accused of Securities Fraud, entered into a plea agreement today with the state. Under the plea deal, Lloyd Y. Kimura, 61, pleaded guilty to all four felony counts against him, giving up his right to a trial. In exchange, the state agreed to concurrent prison terms, and agreed not to file additional Ponzi scheme charges against him.
Kimura, who is the president of Maui Industrial Loan & Finance Company, appeared in 2nd Circuit Court this morning alongside his attorney, Philip Lowenthal.
In all, Kimura was charged with two counts each of Prohibited Securities Practice and Misleading Financial Statements.
During the proceedings, attorney for the state, Christopher Young detailed a portion of the Securities Fraud allegations.
According to court proceedings, one count involved the 2007 sale of securities to Barron and Roseline Souza, who, Young said, wrote a check for $590,655.32. The count also claims five checks totaling $245,000 were written by Ronald Riccio and Carol Riccio between 2007 and 2008, according to Young.
The Securities Fraud complaints specifically accuses the defendant of attempting to defraud another out of more than $100,000 in connection with the offer, sale, or purchase of any security, by employing a device, scheme, or artifice.
According to the initial complaint, Prohibited Securites Practice is a Class A felony that carries a maximum penalty of 20 years in jail and possible fines of $50,000; False or Misleading Financial Statements is a Class C felony, carrying a maximum penalty of 5 years in jail and a possible $20,000 fine.
Both sides agreed that the amount of restitution to be paid, will be determined in Federal Bankruptcy Proceedings expected to take place in 2011.
The complaint against Kimura was processed by the Maui Police Department on December 21, 2010. A $110,000 cash only bail will be executed on January 6th when Kimura is scheduled to appear in Federal Court. Sentencing here on Maui in 2nd Circuit Court is set for 8:30 a.m. on February 24, 2011.