Ex-CEO of medical debt collection firm convicted in $1.5B fraud scheme

The former president and CEO of an investment company and a medical debt collections business was convicted Nov. 27 for his role in a $1.5 billion Ponzi scheme, according to the Department of Justice.

After a five-week jury trial, Edwin Fujinaga was found guilty of eight counts of mail fraud, nine counts of wire fraud and three counts of money laundering.

Between 2000 and 2013, Mr. Fujinaga fraudulently solicited more than $1 billion in investments from more than 10,000 Japanese residents, who wired their money to his bank accounts in Las Vegas, according to evidence presented at trial. Mr. Fujinaga distributed marketing materials that promised investors their funds would be used to purchase medical claims. However, most of the funds were used to pay off old investors.

When the Japanese government revoked Mr. Fujinaga's company's license to market securities in April 2013, the company owed investors more than $1.5 billion, according to the Justice Department.

Mr. Fujinaga is scheduled to be sentenced March 8.

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