Irvine : Tax Preparer Convicted in Investment Scheme
An Irvine tax preparer has been convicted in Los Angeles Superior Court af swindling 27 people out of more than $1 million in a fraudulent investment scheme, a spokesman for the Los Angeles County district attorney’s office announced Thursday.
James Okura Jr., 39, was found guilty late Wednesday of 40 charges, including 27 counts of selling securities without a license and 13 counts of selling securities by leaving out important information, said Al Albergate, public information officer.
Okura’s 27 victims--many of Japanese descent--all live in Los Angeles County. They were lured by Okura into investing in five gift shops he opened, with promises of getting a 50% annual return on their money. Four of the shops, which he opened in 1979, are in Solvang and the fifth is in Fountain Valley, Albergate said.
Okura persuaded several of his victims to refinance their homes, Albergate said, “and at least two of the investors lost their homes because Mr. Okura convinced them to take out loans to come up with the (investment) money, promised he would help them repay the loans and didn’t.”
One part of Okura’s fraudulent dealings involved a Ponzi scheme, in which he used the investment money of later investors to pay off the early ones, rather than having the payoff come from the businesses themselves, officials said. And much of the money did not go into the businesses at all, Albergate said, noting that “it went to him personally and he spent it. It went for his own personal expenses, and, as far as I know, there’s no money recovered.”
In addition to the 27 Los Angeles area victims, Okura defrauded 10 Orange County residents, two in Santa Barbara and one in Ventura. However, the Los Angeles County district attorney will not be filing any additional criminal charges against Okura, Albergate said .
The Irvine man will be sentenced May 30, and could receive up to nine years in prison. He is being held in Los Angeles County Jail in lieu of $200,000 bail, Albergate said.
