William K. Ichioka

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.