Former Morgan Stanley Dean Witter stockbroker Ryan Kimura of Honolulu, Hawaii, pled guilty today in federal court to one count each of wire fraud, bank fraud, filing a false federal tax return and money laundering.

United States Attorney for the District of Hawaii Florence T. Nakakuni said that according to the information presented in court, Kimura, while a stockbroker at MSDW, induced members of his wife’s family to deposit more than $2.1 million in accounts with the bank by making false and fraudulent representations and omitting facts.

After Kimura’s father-in-law, mother-in-law, grandmother-in-law and sister-in-law unknowingly applied for and received MSDW checks, Kimura used them without their knowledge. Deposits were also received from a company in Japan owned by Kimura’s father-in-law. He then made stock trades with the company’s funds resulting in losses of approximately $360,000, while receiving a commission for each and manufacturing reports of interest allegedly earned.

Overall, Kimura, 42, embezzled $1.5 million from his victims through forging signatures on 206 checks and using the Japanese company’s funds without permission. Under the plea agreement, Kimura will owe $1.5 million in restitution to MSDW.

Kimura pled guilty to filing a false 2005 joint federal income tax return and agreed to pay restitution to the IRS for combined tax losses of $505,429 for the calendar years 2000 through 2007 plus interest, but admitted there was a state tax loss of $129,770.26.

“Cheating on your income taxes harms us all because most Americans benefit greatly from services made possible by taxpayer money,” said Marcus Williams, the IRS special agent in charge of Hawaii, in a statement.

According to United States Attorney Nakakuni, the attorney general of the United States said that “we will vigorously investigate financial crimes and ensure that those who commit them are made to pay the price—by serving long sentences and making restitution to taxpayers, as well as victims.”

Kimura faces maximum sentencing of 30 years for bank fraud, 20 years for wire fraud, 10 years for money laundering and three years for filing a false income tax return. The maximum fines are $1 million for bank fraud, $100,000 for the false tax return and $250,000 each for the wire fraud and money laundering.

Chief United States District Judge Susan Oki Mollway, who presided over the plea, set sentencing for Aug. 8.

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