 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17187 / October 15, 2001
SEC
v. Concord Capital Enterprise, dba Concord Capital
Inc., Scott Yoshizumi, Ann Ta, and Dionisia Pappas,
Case No. SA CV 00-1131 AMS (EEx) (C.D. Cal.).
United
States v. Scott K. Yoshizumi, Case No. CR 01-344
ABC (C.D. Cal.).
CALIFORNIA
EX-FELON PLEADS GUILTY IN FRAUDULENT INVESTMENT
SCHEME
On
October 10, 2001, an Orange County man pled guilty
to federal criminal charges arising out of a fraudulent
prime bank investment scheme. Scott Yoshizumi,
age 40, of Fullerton, California, pled guilty
to charges of securities fraud, mail fraud, wire
fraud, and money laundering based on his ownership
and control of Concord Capital, Inc., of Cerritos
and La Palma, California.
The
United States Attorney for the Central District
of California prosecuted Yoshizumi for operating
a fraudulent "Ponzi" scheme that offered
fictitious investments to individuals throughout
the United States. As part of his guilty plea,
Yoshizumi admitted that he defrauded over 100
investors of more than $17 million. Yoshizumi
admitted that he spent this money on personal
expenses, such as houses and luxury cars. Yoshizumi
further admitted lying to investors about his
personal background. Yoshizumi told investors
that he was a legitimate businessman with significant
experience in the financial world. In fact, Yoshizumi
had two previous federal criminal convictions
for investment fraud, had previously filed for
personal bankruptcy, and had none of the professional
or educational credentials that he bragged about
to investors.
United
States District Judge Audrey B. Collins accepted
Yoshizumi's guilty plea and set the matter for
sentencing on January 7, 2002. Under the terms
of the plea agreement filed with the Court, the
government and Yoshizumi have jointly recommended
that Yoshizumi be sentenced to 96 months in federal
prison.
In
November 2000, the Securities and Exchange Commission
filed an emergency civil action against Yoshizumi,
Concord Capital, and others alleging fraud in
the offer and sale of this investment. The Commission's
civil action is pending in federal court.
from:
http://www.sec.gov/litigation/litreleases/lr17186.htm
UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16809 / November 24, 2000
SECURITIES
AND EXCHANGE COMMISSION V. CONCORD CAPITAL ENTERPRISE,
DBA CONCORD CAPITAL INC. AND CONCORD CAPITAL ENTERPRISES,
SCOTT YOSHIZUMI, ANN TA, AND DIONISIA PAPPAS,
Civil Action No. SA CV 00-1131 AHS (EEx) (C.D.
Cal.)
The
Securities and Exchange Commission ("Commission")
today announced that on November 21, 2000, U.S.
District Judge Alicemarie H. Stotler granted the
Commission's renewed application for a temporary
restraining order, halting an ongoing prime bank
scheme perpetrated by Concord Capital Enterprise,
an entity located in Cerritos, California, and
Scott Yoshizumi, a twice-convicted felon. The
Commission alleged that the defendants have raised
at least $1.5 million from at least 25 investors
nationwide. The Commission's initial application
for a TRO was denied by the Court on November
16, 2000.
The
Commission's Complaint alleges that from at least
November 1999 to the present, Concord and Yoshizumi
have engaged in a fraudulent scheme involving
an investment in a Bank Debenture Program. The
Complaint further alleges that the offering documents
distributed by the defendants and their agents
represent that client funds will be used solely
for participating in the Bank Debenture Program
with the "top 200 world banks" and that
investors will receive two or four percent profit
per month. Investors are further told that their
funds will be placed in a "special account"
until sufficient funds are accumulated to enter
into the program. In fact, the Bank Debenture
Program is a fraudulent investment scheme and
investor funds are commingled into several Concord
accounts and immediately withdrawn for various
business expenses and personal uses including
the purchase of a $1.3 million home in Fullerton
for relief defendant Ann Ta and a $145,869 Mercedes
Benz automobile for relief defendant Dionisia
Pappas. The Commission's Complaint does not allege
that Ta and Pappas violated the securities laws
but names them as relief defendants for the purpose
of obtaining disgorgement of assets that allegedly
received as the result of the fraud perpetrated
by Concord and Yoshizumi. Additionally, approximately
$1 million from the Concord accounts was paid
to various entities that do not appear to have
any relation to the Bank Debenture Program and
about $800,000 was paid as commissions to various
individuals, including sales agents.
The
Court's Order temporarily enjoins Concord and
Yoshizumi from violating the antifraud provisions,
Section 17(a) of the Securities Act of 1933 and
Section 10(b) of the Securities Exchange Act and
Rule 10b-5. Among other things, the Order also
imposes a freeze on the assets of all of the defendants.
A hearing on the Commission's motion for a preliminary
injunction will be held on December 1, 2000. In
addition to the preliminary relief, the Commission
also seeks a judgment of permanent injunction,
disgorgement and civil penalties against Concord
and Yoshizumi and disgorgement against Ta and
Pappas.
from:
http://www.sec.gov/litigation/litreleases/lr16809.htm
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