We write today about an action filed by the Securities and Exchange Commission (SEC) against Steven Kobayashi for allegedly orchestrating a multimillion-dollar Ponzi scheme involving investments in purported life settlements. According to the complaint, “between 2006 and 2009, financial advisor Steven T. Kobayashi defrauded his customers out of millions of dollars. After establishing a private fund for his customers to invest in life settlement policies, Mr. Kobayashi began siphoning money into his own bank account.” The complaint alleges Kobayashi violated Sections 10(b) and 15(a) of the Exchange Act. The SEC seeks, among other things, a permanent injunction that enjoins Mr. Kobayashi from violating these sections of the Exchange Act, payment of civil penalties and the disgorgement of all ill-gotten gains, plus prejudgment interest.
Click on the PDF link below to view the full alert.