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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19315 / July 27, 2005

SECURITIES AND EXCHANGE COMMISSION vs. OHANA INTERNATIONAL, INC., FINANCIAL SOLUTIONS, and CHRISTIANO HASHIMOTO, Civil Action No. EDCV 04-01386 SVW (SGLx)

SEC OBTAINS $18.4 MILLION JUDGMENTS AGAINST CHRISTIANO HASHIMOTO, FINANCIAL SOLUTIONS, AND OHANA INTERNATIONAL

On July 14, 2005, the Hon. Stephen V. Wilson, United States District Judge for the Central District of California, entered final judgment against defendant Christiano Hashimoto, individually and doing business as Financial Solutions, permanently enjoining Hashimoto from violating the antifraud, securities registration and broker-dealer registration provisions of the federal securities laws and ordering him to pay $18,442,395.58 in disgorgement and prejudgment interest and $120,000 in civil penalties. In so doing, the court found that Hashimoto had violated Sections 5 and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Also on July 14, 2005, the court entered final judgment against Ohana International, Inc., the remaining defendant in the matter, pursuant to Ohana’s consent through its court-appointed receiver, Robb Evans. The final judgment entered against Ohana permanently enjoins it from violating the same provisions of the federal securities laws, and orders Ohana to pay the same amount of disgorgement and prejudgment interest as does the final judgment entered against Hashimoto.

On November 3, 2004, the Commission filed a complaint against Hashimoto, Financial Solutions, and Ohana, alleging that they had raised at least $8 million through an unregistered offering of 30-day promissory notes paying purported returns of 10% to 20% per month, and that they had promoted the offering through some of the African-American community’s largest churches in Los Angeles. On that same day, the court issued a temporary restraining order and appointed Robb Evans as the temporary receiver over Financial Solutions and Ohana. On November 16, 2004, Hashimoto told members of another group of targeted investors – members of the California National Guard residing near San Luis Obispo – that he had concealed assets sufficient to repay them in full from the Commission and the receiver. Hashimoto subsequently admitted that his statements were false. On December 7, 2004, the court issued a preliminary injunction prohibiting all of the defendants from future violations of the antifraud and registration provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and appointed Evans as permanent receiver. On July 11, 2005, the court granted the Commission’s motion for summary judgment against Hashimoto.

 

http://www.sec.gov/litigation/litreleases/lr19315.htm


Modified: 07/27/2005