The state securities commissioner issued a cease and desist order to former Hawaii securities salesman Colburn Kuwata after he allegedly lured a 70-year-old woman into a financial scheme.
The order says Kuwata asked the woman to give him $60,000 to invest. He told her that the investment would guarantee a 20 percent return, was offered by a London-based company and involved a "medical plan" or "accounts receivable."
Kuwata also told the senior that her investment would be insured and risk-free.
The state says Kuwata is accused of depositing the money into his own bank account and spent most of the money on a large mortgage payment and other expenses.
The investor says she never received her $60,000 back or the promised interest, other than a single payment of $1,000 in September 2011.
Hawaii Commissioner of Securities Tung Chan alleges that Kuwata was not properly registered to transact securities, that he sold an unregistered security and that he violated the state's anti-fraud provisions. Kuwata is also accused of violating the terms of a 2000 Consent Order barring Kuwata from the securities industry. Because the victim is a senior in Hawaii, the commissioner can impose additional penalties against Kuwata.
The cease and desist order seeks $300,000 in penalties in addition to a permanent injunction against transacting securities in the state.
Anyone who has been solicited by Kuwata or has information on this case is urged to contact the State Securities Enforcement Branch using the following phone numbers:
- Oahu: (808) 586-2740
- Kauai: (808) 274-3141, followed by 62740 and the # sign
- Maui: (808) 984-2400, followed by 62740 and the # sign
- Hawaii: (808) 974-4000, followed by 62740 and the # sign
- Lanai and Molokai: 1-800-468-4644 (toll free), followed by 62740 and the # sign
You can also email the Securities Enforcement Branch at email@example.com.