Father, son arrested in Japan get US prison for Ponzi scheme

Apr 5, 2022, 4:07 PM | Updated: 4:28 pm

LAS VEGAS (AP) — Two former investment executives arrested in Japan were sentenced Tuesday to five years in a U.S. prison for their roles in what federal authorities called a $1.5 billion international Ponzi scheme with 10,000 victims in the U.S. and abroad.

Junzo Suzuki and his son, Paul Suzuki, apologized to the judge, their family and their victims before each was sentenced in U.S. District Court in Las Vegas to five years in prison and three years of supervised release, according to court records and their attorney, Richard Wright.

The father-son defendants pleaded guilty in January to one count of wire fraud and avoided trial on 15 federal fraud charges. Prosecutors have compared the case involving Las Vegas-based MRI International Inc. with the biggest-ever U.S. fraud cases.

U.S. District Judge Gloria Navarro scheduled a June 28 hearing at which the government, defense attorneys and lawyers for victims will focus on a possible $141 million in restitution.

Junzo Suzuki, 73, has been a legal permanent resident of the U.S. but will face deportation following his prison term, according to court documents. He has multiple health issues and has been on pretrial release since April 2020 due to the potential exposure to COVID-19 behind bars. He is due to surrender for prison July 8.

Paul Suzuki, 43, is a U.S. citizen, but has been in custody since the two men were arrested in Japan in January 2019. Navarro said he can be allowed to live with family in Japan while he serves his three years of supervised release.

The two were arrested in Japan just two months after a federal jury in Las Vegas found their co-defendant, Edwin Fujinaga, guilty of 20 counts of mail fraud, wire fraud and money laundering.

Fujinaga, now 75, is serving a 50-year U.S. prison sentence.

Prosecutors told jurors that from about 2009 to early 2013, Fujinaga ran a Las Vegas operation that told Japanese investors they were buying claims from a medical collection business, according to court documents.

He was found guilty of using new investors’ money to pay off previous investors and spending the lavishly on a Las Vegas golf course mansion, a private jet, luxury cars and real estate in California wine country, Beverly Hills and Hawaii.

Junzo Suzuki was MRI International’s executive vice president and Paul Suzuki managed Tokyo operations. Prosecutors said that when the Japanese government revoked MRI’s license to market securities in April 2013, the firm owed investors more than $1.5 billion.

Wright said his clients learned of the Ponzi scheme only about a year before it collapsed.

U.S. attorneys had compared Fujinaga’s conviction with those of Bernard Madoff in 2009 in New York, Allen Stanford in 2012 in Houston, and Scott Rothstein in 2010 in Miami.

Madoff died in prison in April 2021 at age 82 while serving a 150-year sentence for bilking thousands of investors out of at least $20 billion.

Stanford, 72, is serving 110 years for a scheme involving more than $7 billion. Rothstein, 59, is serving 50 years in a $1.2 billion case.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of...

Associated Press

Saudi Arabia reducing global oil supply, could spell higher prices for US drivers

Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude.

2 days ago

This photo provided by Robert Wilkes, owner of a house boat management company, shows smoke rising ...

Associated Press

Houseboats catch fire while docked at Wahweap Marina on Lake Powell

More than half a dozen house boats momentarily caught fire at a popular boating destination on the Utah-Arizona line on Friday.

4 days ago

File - Women work in a restaurant kitchen in Chicago, Thursday, March 23, 2023. On Friday, the U.S....

Associated Press

US hiring, unemployment jump in May and what that says about the economy

The nation’s employers stepped up their hiring in May, adding a robust 339,000 jobs, well above expectations.

4 days ago

(Pixabay Photo)...

Associated Press

Oath Keeper from Arizona sentenced for role in Jan. 6 riot at US Capitol

Edward Vallejo, a U.S. Army veteran from Phoenix, oversaw a “Quick Reaction Force” at a Virginia hotel that was prepared to deploy an arsenal of weapons into Washington if needed, authorities say.

5 days ago

FILE - U.S. Border Patrol Chief Raul Ortiz listens during a news conference, Jan. 5, 2023, in Washi...

Associated Press

US Border Patrol chief is retiring after seeing through end of Title 42 immigration restrictions

The head of the U.S. Border Patrol announced Tuesday that he was retiring, after seeing through a major policy shift that seeks to clamp down on illegal crossings at the U.S.-Mexico border following the end of Title 42 pandemic restrictions.

6 days ago

FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as...

Associated Press

House OKs debt ceiling bill to avoid default, sends Biden-McCarthy deal to Senate

The House approved a debt ceiling and budget cuts package late Wednesday, as President Joe Biden and Speaker Kevin McCarthy assembled a bipartisan coalition of centrist Democrats and Republicans against fierce conservative blowback and progressive dissent.

6 days ago

Sponsored Articles

...

Desert Institute for Spine Care

Spinal fusion surgery has come a long way, despite misconceptions

As Dr. Justin Field of the Desert Institute for Spine Care explained, “we've come a long way over the last couple of decades.”

...

re:vitalize

Why drug-free weight loss still matters

Wanting to lose weight is a common goal for many people as they progress throughout life, but choosing between a holistic approach or to take medicine can be a tough decision.

(Photo by Michael Matthey/picture alliance via Getty Images)...

Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.

Father, son arrested in Japan get US prison for Ponzi scheme