Sunday, June 23, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, August 8, 2013
"Hawaii's Fittest CEO" at Center of Alleged Ponzi Scheme
By News Release @ 12:07 AM :: 5274 Views :: Ethics, Law Enforcement

STATE ORDERS FORMER “TOP MALE FITTEST CEO” DAVID T. LOW AND HAWAII CAPITAL MANAGEMENT, LLC TO CEASE AND DESIST

News Release from DCCA August 7, 2013

HONOLULU –Hawaii Commissioner of Securities Tung Chan of the Department of Commerce and Consumer Affairs issued a Preliminary Order to Cease and Desist and Notice of Right to Hearing against a Hawaii businessman, David T. Low, and his company, Hawaii Capital Management, LLC, for violating State securities laws.

Low promoted himself in the community as an investment expert and as “Hawaii’s Fittest CEO” on his company website, www.hawaiicapitalmanagement.com, among other places. He was featured in the October 2007 Hawaii Business Magazine article, “Top Male and Female Fittest CEO.”

The order asserts that between February 2010 and April 2012, Low solicited three investors to purchase securities in the form of investment contracts from Hawaii Capital Management, LLC. Low allegedly told the investors that their money would be invested in an annuity, Roth IRA, or “pooled” investment for their future use and benefit. As a result, the investors furnished a combined total of $257,626.18 to Low and his company.

However, none of the investors’ money were ever invested as promised. Instead, Low used the investors’ money to purchase securities for himself and for personal expenses, including payments to Mercedes Benz, Audi Hawaii, and the City & County of Honolulu for registration of a Ferrari. Low also used money for retail purchases, groceries, dining and entertainment, gym membership, rent, credit card payments, and cash withdrawals.

The order also asserts that Low and Hawaii Capital Management, LLC employed deceptive schemes and devices to conceal the fraud such as forging documents, using one investor’s money to pay a return to another investor, and issuing false financial statements of fictitious accounts and account balances.

State securities laws provide anti-fraud provisions and also require securities such as investment contracts, as well as individuals or entities soliciting or transacting securities, to be registered with the State.  The order alleges that Low was not registered to transact securities in Hawaii, that the securities he sold to the three investors were also unregistered, and that Respondents violated the State’s anti-fraud provisions.

The order seeks total penalties of $200,000 in addition to a permanent injunction against transacting securities in the State, rescission, and restitution for the investors.

Anyone who has been solicited by or transacted business with David T. Low and/or Hawaii Capital Management, LLC or who may have information regarding this matter is urged to contact the State Securities Enforcement Branch.

Securities Enforcement Branch

  • Oahu (808) 586-2740
  • Kauai: (808) 274-3141, followed by 62740 and the # sign
  • Maui: (808) 984-2400, followed by 62740 and the # sign
  • Hawaii: (808) 974-4000, followed by 62740 and the # sign
  • Lanai and Molokai: 1-800-468-4644 (toll free), followed by 62740 and the # sign

E-mail: seb@dcca.hawaii.gov 

The Securities Enforcement Branch of the DCCA receives and investigates complaints regarding potential violations of Hawai‘i securities laws and prosecutes securities fraud and other securities violations.

###

KHON: Low Picked up on Bench $110K Warrant

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii