SEC v. Fujinaga, et al. Case No. 13-cv-1658 (D. Nev.)
Oct. 14, 2022
On September 11, 2013, the Commission filed a Complaint against Edwin Yoshihiro Fujinaga (“Fujinaga”) and MRI International, Inc. (“MRI”) (collectively, the “Defendants”) and named June Fujinaga, CSA Service Center, LLC, The Factoring Co., and the Yunju Trust as Relief Defendants, alleging that the Defendants misrepresented to investors that MRI would use investors’ money to buy medical accounts receivables from medical providers at a discount and seek to recover the full receivable from insurance companies, when in fact, the Defendants used investor money to pay the principal and interest due to earlier investors, operating expenses of MRI, related entities, and for personal expenses. The Commission filed an amended complaint in July 2014. See the Commission’s Amended Complaint.
The Court has since entered a judgment against the Defendants, holding them jointly and severally liable for disgorgement of $442,229,611.70 and prejudgment interest of $102,129,752, and separately for civil penalties of $20 million each. See the Defendant’s Final Judgment.
The Court also entered judgment against certain Relief Defendants, holding them jointly and severally liable to pay disgorgement of $2,333,382.18 to the Receiver. See the Relief Defendant’s Final Judgment.
In February 2015, the Court entered an order appointing Robb Evans & Associates, LLC to be the receiver for certain commercial properties owned or controlled by defendants or relief defendants (the “Receiver”). The Court expanded the Receiver’s role to a “full equitable receiver” by order dated May 15, 2015. See the Court’s Order.
The Receiver currently is winding down its collection activities, and by order dated March 18, 2019, the Court appointed Heffler Claims Group as Distribution Agent to assist in overseeing the administration and the distribution of funds collected by the Receiver to injured investors. See the Court’s Order.
As of June 30, 2019, the Receiver reported having collected approximately $31.5 million. See the Receiver’s Status Report.
On May 8, 2020, the Court entered an Order by which the Internal Revenue Service voluntarily subordinated certain claims against the Receivership Estate to claims of defrauded investors. The Commission anticipates that the Receiver will continue to wind down the Receivership, ultimately seeking termination of the Receivership Estate and the transfer of collected funds to the Distribution Agent.
On October 5, 2022, the Court terminated the Receivership and directed the Receiver to send the balance of the Receivership Estate to the Securities and Exchange Commission (“SEC”) for distribution to harmed investors in accordance with a Court-approved plan of distribution. See Order. The SEC has received approximately $33 million from the Receiver. The SEC is drafting a plan for the distribution of those funds that it will submit to the Court for approval.
On April 10, 2023, the SEC filed a status report with the Court. See the SEC’s Status Report.
For more information, please contact the Commission.
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