State authorities have taken action against a man accused of creating as many as 13 different personas to take more than $1.4 million from an elderly Hawaii woman and using the money for gambling and personal expenses instead of investments.
Hawaii Commissioner of Securities Tung Chan of the Department of Commerce and Consumer Affairs issued a Preliminary Order to Cease and Desist and Notice of Right to Hearing against Bing Long Yee for violating state securities laws.
The order asserts that, from 1998 through February 2013, Yee solicited an elderly Hawaii woman to invest in an elaborate business venture. Yee allegedly told the woman that he ran various businesses, including real estate, jade stone exportation, and a restaurant start-up, and needed money to help fund his businesses.
Yee allegedly created as many as 13 fake identities of individuals who were supposedly involved in his businesses and he assumed at least three different personas by disguising his voice while on the phone with the woman. As a result, the order alleges the woman provided a combined total of $1,414,145 to Yee for investment in his businesses.
The order further alleges that none of the woman's money was used as promised. Instead, Yee allegedly spent all $1,414,145 to gamble at casinos in Las Vegas and on personal living expenses. To date, the woman has not received any of her principal or promised returns.
State securities laws provide anti-fraud provisions and require securities such as investment contracts, as well as individuals or entities soliciting or transacting securities, to be registered with the state. The order asserts that Yee violated the state’s anti-fraud provisions by employing deceptive schemes and devices to perpetuate and conceal the fraud from the woman, that Yee was not registered to transact securities in Hawaii, and that the security he sold to the woman was also unregistered.
The order seeks total penalties of $150,000 in addition to a permanent injunction against Yee for transacting securities in the state, rescission, and restitution for the elderly woman.
Anyone who has been solicited by or transacted business with Yee or who may have information regarding this matter is urged to contact the State Securities Enforcement Branch.
Securities Enforcement Branch
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
The Securities Enforcement Branch of the DCCA receives and investigates complaints regarding potential violations of Hawaii securities laws and prosecutes securities fraud and other securities violations.