Two Los Angeles firms and individuals accused of raising at least $230 million through the fraudulent sale of promissory notes will pay a fine to settle the charges, regulators said Tuesday.
J.T. Wallenbrock & Associates, Larry Toshio Osaki, Van Y. Ichinotsubo and Citadel Capital Management Group Inc. agreed last week to a permanent injunction barring them from acting as unregistered brokers or selling unregistered securities. The Securities and Exchange Commission said the defendants did not admit or deny liability.
The SEC last year sued Wallenbrock and the others, claiming they raised money from about 1,000 investors by selling unregistered promissory notes touting a 20% return every three months.
At least $100 million was used to pay back other investors and create an illusion that there was a legitimate business, regulators said.