SEC v. MRI Distribution Fund

Securities and Exchange Commission v. Edwin Yoshihiro Fujinaga, et al. 
United States District Court District of Nevada
Case No.: 2:13-cv-1658-JCM-CWH
Welcome to the information website for the SEC v. MRI Distribution Fund. 

For Japanese website, click here. (日本語のウェブサイトは、こちらから。)

IF YOU HAVE SUFFERED LOSSES ON AN INVESTMENT IN MRI INTERNATIONAL, INC. THAT WAS INITIALLY MADE, OR REINVESTED, FROM JULY 5, 2008 THROUGH JULY 5, 2013, INCLUSIVE, YOU MAY BE ELIGIBLE FOR A DISTRIBUTION FROM THE DISTRIBUTION FUND. 

Please see FAQs for further information on eligibility. 

Background:

On September 11, 2013, the SEC commenced a civil action against Edwin Yoshihiro Fujinaga and MRI International, Inc. (“MRI”) (collectively, the “Defendants”) and named June Fujinaga, CSA Service Center, LLC, The Factoring Co., and the Yunju Trust as Relief Defendants (collectively, the “Relief Defendants”). In its amended complaint filed on July 24, 2014, the SEC alleged that the Defendant perpetrated a Ponzi scheme that victimized thousands of investors. As part of the alleged scheme, the Defendants misrepresented to investors that MRI would use investors’ money to buy medical accounts receivables from medical providers at a discount (“Mars”) and seek to recover the full receivable from insurance companies. In fact, the Defendants used investor money to pay principal and interest to earlier investors, operating expenses of MRI and related entities, and for personal expenses. The SEC alleged that MRI stopped buying Mars from independent healthcare facilities in 2008; that as early as 2008, MRI was insolvent and as of December 2008, MRI had retained earnings deficit; that, from 2008, through 2013, the Defendants sent false quarterly account statements to existing investors; and that by 2011, MRI was in default on the payments that it was obligated to pay investors. 

On January 27, 2015, the Court entered final judgment against the Defendants, ordering them jointly and severally to pay disgorgement and prejudgment interest of $544,359,364.08, and each to pay a civil penalty of $20,000,000, for a total monetary judgement of $584,359,364.08.

On May 15, 2015, the Court appointed Robb Evans & Associates LLC as the full equitable receiver (the “Receiver”) for all assets owned or controlled by the Defendants and Relief Defendants (the “Estate”). 
On March 14, 2016, the Court entered an amended final judgement against the Relief Defendants, ordering them to disgorge, jointly and severally, $2,333,382.12 to the Receiver, and requiring June Fujinaga to disgorge to the Receiver all her legal, beneficial, and equitable interest in the Yunju Trust. 

By Order entered March 18, 2019, the Court appointed Heffler Claims Group (“HCG”), the Claims Administrator in the Related Class Action (Shige Takiguchi, et al. v. MRI International, Inc., et al., 2:13-cv-01183-GMN-VCF (D. Nev.)), as the Distribution Agent for the Distribution Fund.  The Court further appointed Heffler, Radetich & Saitta LLP, a certified public accounting firm, as tax administrator for the Distribution Fund. 

By Order entered October 5, 2022, this Court, in relevant part, terminated the Estate and directed the Receiver to turn over the balance of the Estate’s settlement fund to the SEC in partial satisfaction of the SEC’s judgements against the Defendants (the “Discharge Order”).

Pursuant to the Discharge Order, the Receiver sent $32,842,802.82 to the SEC, comprising the Distribution Fund.  All accrued interest, as well as any other funds directed to the Distribution Fund, will be added to, and become part of, the Distribution Fund. 
This website is authorized (and required) in the Court-approved distribution plan (paragraph 29(b)) and controlled by Kroll Settlement Administration LLC, the Distribution Agent appointed by the Court. This is the only authorized website for this case.
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Mail
SEC v. MRI Fund c/o Kroll Settlement Administration
PO Box 5324
New York, NY 10150-5324

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