SEC Charges Investment Fund Founder William K. Ichioka with $25 Million Offering Fraud

The Securities and Exchange Commission (SEC) today announced charges against New York resident, William K. Ichioka, accusing him of defrauding investors of $25 million. Ichioka allegedly made false claims about his investment successes, promised large anticipated returns, but misused the investors’ money for gambling and personal luxuries. Ichioka has agreed to settle the charges.

The SEC’s complaint, filed in the United States District Court for the Northern District of California, states that from June 2019 to October 2021, Ichioka enticed investors to invest in his unregistered investment fund, Ichioka Ventures. He did so by boasting about his successful investment track record, promising high returns, and guaranteeing investors’ principal. Contrary to his claims, Ichioka failed to deliver on his promises and used the funds from new investors to repay others. The complaint alleges that Ichioka fabricated a bank statement and other documents to show success. Furthermore, the complaint alleges that Ichioka misappropriated investors’ funds for personal expenditure, including luxury watches, cars, gambling, and a penthouse apartment.

Monique C. Winkler, Director of the SEC’s San Francisco Regional Office, stated, “As our complaint alleges, Ichioka enticed investors by falsely claiming that he was a self-made multimillionaire investor capable of generating substantial investment returns. However, in reality, Ichioka misappropriated investor funds for his personal enrichment. This case demonstrates the SEC’s commitment to pursuing wrongdoers and safeguarding the integrity of our markets.”

The SEC’s complaint charges Ichioka with violating federal securities laws’ antifraud provisions. Ichioka has agreed to the implementation of a partial final judgment, pending court approval, that entails permanent and conduct-based injunctions, an officer and director bar, with disgorgement, prejudgment interest, and a civil penalty to be determined later by the court.

Parallel charges against Ichioka have also been announced today by the U.S. Attorney’s Office for the Northern District of California and the Commodity Futures Trading Commission.

The SEC’s investigation was led by Erin E. Wilk of the Enforcement Division’s Crypto Assets and Cyber Unit, and supervised by Jason H. Lee and Ms. Winkler of the San Francisco Regional Office. The SEC’s litigation will be managed by Ms. Wilk and John Han. The SEC expresses its appreciation for the assistance of the U.S. Attorney’s Office, the Commodity Futures Trading Commission, the Federal Bureau of Investigation, and the Internal Revenue Service