Lloyd Y. Kimura recently pled guilty in federal court to charges that he
swindled more than 50 people out of $20 million for allegedly fraudulent
For sentencing purposes, Kimura admitted to using his business, Maui Industrial
Loan and Finance Co., to attract investments. However, money collected
from newer customers was allegedly used to pay older clients, in the usual
Ponzi pattern. Kimura filed for bankruptcy in February, after the money
finally ran dry with liabilities totaling $23 million.
"I took money from people that I knew [...] and I did not pay them
back," Kimura told U.S. Magistrate Judge Barry Kurren in court.
The 61-year-old businessman from Maui could face a maximum prison sentence
of 135 years without parole under a plea bargain.
Kimura's alleged victims came from across the country, although most
of them were from Maui.
"This is as long of a
Ponzi scheme as I've ever seen," Assistant U.S. Attorney Ken Sorenson said.
"We'll be seeking a substantial and just sentence considering
the fraud conditions that occurred in this case."
Kimura has allegedly been attracting investors for his supposedly fraudulent
investments since 1986.