U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19096 / February 23, 2005
SECURITIES AND EXCHANGE COMMISSION vs. OHANA INTERNATIONAL, INC., FINANCIAL SOLUTIONS, and CHRISTIANO HASHIMOTO, Civil Action No. EDCV 04-01386 RT (SGLx)
SEC OBTAINS ORDER REQUIRING DEFENDANT CHRISTIANO HASHIMOTO TO SHOW CAUSE WHY HE SHOULD NOT BE HELD IN CIVIL CONTEMPT
On February 3, 2005, the Hon. Robert Timlin, United States District Judge for the Central District of California, Eastern Division, issued an order to defendant Christiano Hashimoto to show cause why he should not be held in civil contempt for violating the court's November 3, 2004 temporary restraining order ("TRO"). Hashimoto is the former president of Financial Solutions and Ohana International, Inc., which operated a multi-million dollar Ponzi scheme, according to a complaint filed previously by the Securities and Exchange Commission.
On November 3, 2004, the Commission filed a complaint against Hashimoto, Financial Solutions, and Ohana, alleging that they had raised at least $8 million from investors through an unregistered offering of 30-day promissory notes purportedly paying returns of 10% to 20% per month. On that same day, the court issued the TRO as to the defendants and appointed Robb Evans as the temporary receiver over Financial Solutions and Ohana. 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.
According to the Commission's contempt application, Hashimoto addressed a group of investors at the Madonna Inn in San Luis Obispo, California on November 16, 2004, telling them that:
The court ordered Hashimoto to appear on February 28, 2005 to show why an order of civil contempt should not be issued.