Hawaii: $23 million fraud financed gambling junkets

Hilo Prosecutor’s ponzi brother pleads guilty in state -Feds Indict last week
By Dwight Kondo

Telling of Hawaii’s business environment – One week following the conviction of Maui ponzi-scammer, Lloyd Kimura, younger brother of Hawaii County Prosecutor, Jay, the Hawaii Better Business Bureau still ranks his bankrupt and criminal finance company with an “A+” rating. Well, that’s how things work here in Hawai’i Nei.

Kimura pleaded guilty to two counts each of engaging in prohibited securities practices and making false or misleading financial statements to the state Department of Commerce and Consumer Affairs’ Financial Institution Division.

Kimura has agreed to accept the mandatory 20-year prison term for the securities fraud charge and maximum five-year prison term for the false-statement charge when Circuit Court Judge Joseph E. Cardoza sentences him in February, said Chris Young, deputy state attorney general.

Unlike the BBB, the Hawaii U.S. Attorney Florence Nakakuni, following his conviction in state courts, filed federal charges against Wailuku ‘businessman’ Kimura, alleging mail fraud, bank fraud and theft from an employee benefit plan. The charges were made in the last days of 2010.

Also very noteworthy is the fact that no major news outlet makes a link between Lloyd and his Hawaii County Prosecutor brother Jay. What is important to note is that the criminal practices by the younger Kimura were indulged during the whole time his brother was putting people in jail for much lesser crimes on another island. The feds report that Kimura’s ponzi scheme started in 1986 and continued until November 2010.

Also, the BBB’s ‘bum steer’ ”A+” ratings given to Maui Industrial Loan and Finance Company, owned by Kimura, even though both declared bankruptcy in January 2010. 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 then.

A whole year has gone by and the Better Business Bureau still has not downgraded MILF Co.’s “A+” as of 0945-010311. (See below)

Also first linked here at Hawaii News Daily. Com. was a report by Pacific Business News concerning Lloyd Kimura’s remedy for stress. “As many as four times a year, the Hawaii native trades his office chair for a seat inside the Indian casinos dotting the California desert. 
“A week max,” Kimura says of his trips to the mainland. “It forces my mind to focus on something other than work.”

Is the Hawaii Better Business Bureau's bum steer still posted? go see: http://tinyurl.com/25oex

PBN reported that this habit was to relieve his “stress” and did not mention the relieving millions of OPM. That’s Other Peoples’ Money.

What is out there and may soon be reported is if older brother Jay tagged along with his ‘more successful’ brother on any of these “stress”-relieving binges to the California Indian casinos spending other peoples’ hard earned wages.

According to The Star/Advertiser:

The federal charges say Kimura “assured investors that loans made by MILFCO were secured, or ‘guaranteed,’ with collateral or liens on property.” But instead of making loans, money from investor/depositors was put into bank accounts, prosecutors allege.

Instead, Kimura used money from new investors to pay off earlier investors and even sent false financial statements, according to federal court records. That by definition is a ‘Ponzi Scheme”.

Federal prosecutors said that at no time was Maui Industrial Loan and Finance licensed by the state to accept deposits.

Kimura also made false statements to obtain lines of credits from two banks and stole $640,000 from the Lloyd Y. Kimura, CPA, Inc. Retirement Trust Account and 401K Profit Sharing Plan, federal court records say.

In addition to Maui Industrial and his accounting company, Kimura owns Wailuku Tire Center. http://tinyurl.com/25qsp5k

Pacific Business News also reported:

“Because his wife, Jennie Kimura, did not file for bankruptcy, the properties are
 not part of the bankruptcy estate because they are owned by the Kimuras as 
tenants by the entirety, Wagner said. “Everything that he has that’s in his estate will be liquidated,” Wagner said. “In order to keep [the nine properties] he still has to pay the mortgages on them or else they’re subject to foreclosure.”

The loan company has about $4 million in receivables, but $3 million was from Kimura, who apparently borrowed the money from the (his own) loan company, Wagner said. The remainder is loans issued to customers, whose payments are now being collected by the trustee. Kimura, who also is a certified public accountant, listed $4.25 million in 
assets, the bulk of that in real estate. He owns 10 properties, but is claiming exemption for nine of them, including his home and the office building, because they are jointly owned with his wife.”

Tags: $23 Million Stolen on Maui, Convicted $23 million ripper Hilo prosecutor's brother, Dwight Kondo, Feds Indict Maui Ponzi Scammer, Hawaii Better Business Bureau, Hawaii County Prosecutor Jay Kimura, Lloyd Kimura pleads guilty in Maui for lying to stae