Grimy Times reports that Edwin Fujinaga, the former president and CEO of Las Vegas Investment Company MRI International Inc., has been convicted of a $1.5 billion Ponzi scheme.
Fujinaga, 72, of Las Vegas, was found guilty of eight counts of mail fraud, nine counts of wire fraud, and three counts of money laundering in connection with his Ponzi scheme. The jury delivered the guilty verdict in under three hours.
The scheme, which lasted from 2000 until 2013, involved Fujinaga fraudulently soliciting over $1 billion in investments from over 10,000 Japanese residents. Investors wired their funds from Japan to bank accounts in Las Vegas under Fujinaga’s control.
Evidence presented during trial showed that Fujinaga used the vast majority of new investors’ funds to pay off old investors, while using the balance for impermissible business and lavish personal expenses, including a private jet, a mansion on a Las Vegas golf course, real estate in Beverly Hills, California wine country, and Hawaii, and luxury cars from Bentley, McLaren, and Bugatti.
When the Japanese government revoked MRI’s license to market securities in April 2013, MRI owed its investors more than $1.5 billion.
The case was investigated by the FBI, with substantial assistance from the Criminal Division’s Office of International Affairs, the Securities and Exchange Commission, the Japanese Financial Services Agency, the Ministry of Justice of Japan, and the Ministry of Foreign Affairs of Japan. The case is being prosecuted by Assistant Chief Albert Stieglitz, Trial Attorneys William Johnston and Danny Nguyen of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Tony Lopez of the District of Nevada.
Sentencing for Fujinaga is set for March 8, 2019.
Fujinaga’s case is a stark reminder of the devastating impact of Ponzi schemes on innocent investors. Grimy Times will continue to monitor this case and provide updates as more information becomes available.
Key Facts
- State: Nevada
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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