A Hawaii man who ran a Ponzi scheme that spanned two decades and cost investors at least $8 million in losses was sentenced on state charges resulting from the scheme. Lloyd Y. Kimura, 61, of Maui, was sentenced to twenty years in state prison by State Circuit Court Judge Joseph Cardoza as well as ordered to pay $8 million in restitution to defrauded victims. Last month, as covered here, United States District Judge David Ezra had sentenced Kimura to twelve years in federal prison and also ordered Kimura to pay $8 million in restitution. According to the Hawaii Attorney General's office, Kimura will serve the two sentences concurrently. Judge Ezra had noted the pending state charges and possible sentence in deciding Kimura's federal sentence, noting that his twelve-year sentence would likely be more severe in light of the possibility for parole under the state sentence.
Kimura operated Maui Industrial Loan & Finance Co. as a massive Ponzi scheme that spanned two decades. Starting in 1986, Kimura would loan out money to investors at high interest rates ranging from eighteen to twenty-four percent. Yet, instead of lending the money out, Kimura used funds from new investors to pay off old investors. When Kimura's scheme was unable to sustain itself in 2009, authorities estimated that at least 50 victims suffered losses exceeding $8 million from Kimura's scheme. Kimura subsequently filed bankruptcy in 2010.