SEC v. William K. Ichioka, No. LR-26214, Northern District of California (Jan. 13, 2025) — Press Release
raw: William K. Ichioka
William K. Ichioka, No. 3:23-cv-03093 (Jan. 13, 2025)
summary
William K. Ichioka obtained a final judgment for conducting a Ponzi-style investment scheme through Ichioka Ventures, resulting in a permanent injunction and an officer and director bar.
paragraph
William K. Ichioka was charged with violating the Securities Exchange Act, the Securities Act, and the Investment Advisers Act for orchestrating a fraudulent investment scheme. He was ordered to pay $30,994,308.97 in disgorgement and $336,406.89 in prejudgment interest, which were satisfied by a separate criminal restitution order. In a parallel criminal case, Ichioka was sentenced to 48 months of imprisonment and ordered to pay $31,330,715.86 in restitution plus a $5 million fine.
narrative
William K. Ichioka operated a fraudulent investment fund, Ichioka Ventures, by promising guaranteed returns and using new investor capital to pay previous investors. To sustain the scheme, Ichioka falsified bank statements and misappropriated millions of dollars for personal luxuries such as cars, gambling, and a penthouse apartment. The SEC obtained a final judgment against him, imposing an officer and director bar and permanent injunctions against violating federal securities laws. Ichioka was held liable for over $30.9 million in disgorgement and interest, which was satisfied through a parallel criminal restitution order. In the concurrent criminal proceeding, he was sentenced to 48 months in prison and ordered to pay $31.3 million in restitution and a $5 million fine. This dual resolution addresses both his civil violations and his criminal securities fraud convictions.
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Statutes
Parties
Securities and Exchange CommissionWilliam K Ichioka
Keywords
ichiokawilliam ichiokasecurities exchangesecuritiesinvestorsexchange commissionwilliamfinalagainstexchangejanuary securitiesinvestment fundnorthern californiaichioka venturesalleges ichioka
Extracted insights
Dollar amounts 4
- $31.33M $31,330,715 $10M–$100M
- $30.99M $30,994,308 $10M–$100M
- $5.00M $5 million $1M–$10M
- $336K $336,406 $100K–$1M
Entities 8
- person final judgment
- person fraudulent offering
- person parallel criminal action
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- agency U.S. Attorney’s Office
- organization U.S. Attorney’s Office
- person william k. ichioka
Triples 14
- Securities And Exchange Commission obtained final judgment
- William K. Ichioka conducted fraudulent offering
- William K. Ichioka raised money from individual investors
- William K. Ichioka falsified bank statement and other documents
- William K. Ichioka misappropriated millions of dollars of investors’ funds
- William K. Ichioka pled guilty to criminal charges
- U.S. Attorney’s Office brought parallel criminal action
- William K. Ichioka stipulated entry of a final judgment
- Securities And Exchange Commission announces final judgment
- William K. Ichioka sentenced 48 months imprisonment
- William K. Ichioka ordered restitution of $31,330,715.86
- William K. Ichioka fined $5 million
- Securities And Exchange Commission imposed conduct-based injunction
- Securities And Exchange Commission imposed officer and director bar
Extracted body text (2,474c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26214 / January 13, 2025 Securities and Exchange Commission v. William K. Ichioka, No. 3:23-cv-03093 (N.D. Cal. filed June 22, 2023) SEC Announces Final Judgment Against Fraudulent Investment Fund Founder William K. Ichioka On January 8, 2025, the Securities and Exchange Commission obtained a final judgment in the U.S. District Court for the Northern District of California against William K. Ichioka, who was charged by the SEC with conducting a fraudulent offering through his investment fund, Ichioka Ventures. The complaint alleges that Ichioka fraudulently raised money from individual investors for Ichioka Ventures by claiming he was an accomplished investor, promising oversized returns, and guaranteeing investors’ principal. In reality, though, as the complaint alleges, Ichioka was unable to pay investors the promised returns and used money from new investors to repay other investors. Also, as alleged in the complaint, Ichioka falsified a bank statement and other documents to create an appearance of success. Furthermore, according to the complaint, Ichioka misappropriated millions of dollars of investors’ funds for his personal use, such as on luxury watches, cars, gambling, and a penthouse apartment. Ichioka stipulated to the entry of a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Section 17(a) of the Securities Act of 1933, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The final judgment also ordered Ichioka liable for disgorgement of $30,994,308.97 and prejudgment interest in the amount of $336,406.89, which were deemed satisfied by the order of restitution entered against Ichioka in a separate criminal proceeding against him. In addition, the final judgment imposed a conduct-based injunction as well as an officer and director bar against Ichioka. Ichioka previously pled guilty to criminal charges, including a charge for securities fraud, in a parallel criminal action brought by the U.S. Attorney’s Office for the Northern District of California, United States v. Ichioka, No. 3:23-cr-00190. In that matter, Ichioka was sentenced to 48 months imprisonment, ordered to pay restitution of $31,330,715.86, and fined $5 million. The SEC’s litigation was conducted by John Han and Erin E. Wilk and supervised by Jason H. Lee of the San Francisco Regional Office.
OCR text (2,474c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26214 / January 13, 2025 Securities and Exchange Commission v. William K. Ichioka, No. 3:23-cv-03093 (N.D. Cal. filed June 22, 2023) SEC Announces Final Judgment Against Fraudulent Investment Fund Founder William K. Ichioka On January 8, 2025, the Securities and Exchange Commission obtained a final judgment in the U.S. District Court for the Northern District of California against William K. Ichioka, who was charged by the SEC with conducting a fraudulent offering through his investment fund, Ichioka Ventures. The complaint alleges that Ichioka fraudulently raised money from individual investors for Ichioka Ventures by claiming he was an accomplished investor, promising oversized returns, and guaranteeing investors’ principal. In reality, though, as the complaint alleges, Ichioka was unable to pay investors the promised returns and used money from new investors to repay other investors. Also, as alleged in the complaint, Ichioka falsified a bank statement and other documents to create an appearance of success. Furthermore, according to the complaint, Ichioka misappropriated millions of dollars of investors’ funds for his personal use, such as on luxury watches, cars, gambling, and a penthouse apartment. Ichioka stipulated to the entry of a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Section 17(a) of the Securities Act of 1933, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The final judgment also ordered Ichioka liable for disgorgement of $30,994,308.97 and prejudgment interest in the amount of $336,406.89, which were deemed satisfied by the order of restitution entered against Ichioka in a separate criminal proceeding against him. In addition, the final judgment imposed a conduct-based injunction as well as an officer and director bar against Ichioka. Ichioka previously pled guilty to criminal charges, including a charge for securities fraud, in a parallel criminal action brought by the U.S. Attorney’s Office for the Northern District of California, United States v. Ichioka, No. 3:23-cr-00190. In that matter, Ichioka was sentenced to 48 months imprisonment, ordered to pay restitution of $31,330,715.86, and fined $5 million. The SEC’s litigation was conducted by John Han and Erin E. Wilk and supervised by Jason H. Lee of the San Francisco Regional Office.