On Nov. 29, DoJ announced conviction for a $1.5bn Japan Ponzi.
- MRI investment company CEO, Edwin Fujinaga, solicited fraudulent investments.
- Medical collection business was located in Las Vegas, Nevada, and Tokyo, Japan.
Allegeed Violations
- Fujinaga solicited $1bn in investments in MRI from over 10,000 Japan residents.
- Investors wired funds from Japan into accounts in US, under control of Fujinaga.
- Told investors that their funds would only be used for purchasing medical claims.
- With use of an escrow agent to ensure that MRI used funds only in that purpose.
- Fujinaga spent less than 2% of investor funds in the purchase of medical claims.
- The majority of the funds from new investors, were used to pay off old investors.
- Remaining balance is paid for impermissible business, jet; mansion; luxury cars.
- When Japanese government revoked MRI’s license in 2013, owed investors $1.5bn.
Settlement
- Sentencing set for Mar. 8, 2019, the jury returned guilty verdict in under 3 hours.
