POSTED: 11:28 a.m. HST, Oct 22, 2010
LAST UPDATED: 11:45 a.m. HST, Oct 22, 2010
WAILUKU >> The trustee in the Maui Industrial Finance Co. bankruptcy case has sued 25 investors in the company.
The Maui News reports trustee Dane Field is trying to recover money the investors received as interest over and above their original investment or deposit.
Field's attorney, Bradley Tamm, says the money wasn't really interest, but rather the fruits of a Ponzi scheme.
Tamm says Maui Industrial's owner, Lloyd Kimura, has acknowledged he used money from late investors to pay off early investors, without really generating income from operations. Tamm says that's the definition of a Ponzi scheme.
Maui News says it's unclear how much money went into the company.
Kimura's attorney, James Wagner, had no comment on Field's legal action.