LIHU‘E — The sentencing of former Kaua‘i banker James Lull for fraud was postponed again last week after some of those who were taken in by Lull told the federal judge of their plight, according to a person familiar with
LIHU‘E — The sentencing of former Kaua‘i banker James Lull for fraud was postponed again last week after some of those who were taken in by Lull told the federal judge of their plight, according to a person familiar with the case.
Ronald K. Kotoshirodo, the United States trustee responsible for looking into Lull’s financial history, accounts and transactions, said in a Friday interview that the sentencing, which had been scheduled for Monday, was continued to May 14.
He said he and his staff are still working to uncover some of Lull’s undisclosed assets in an effort to resolve the bankruptcy proceedings and distribute some money back to his creditors.
“I don’t see the end in sight right now,” Kotoshirodo said.
However, the three months between the originally scheduled sentencing date of Jan. 8 and last week allowed time for Lull to submit to questioning while hooked up to a polygraph, or lie detector. Kotoshirodo said Lull provided a day and a half of depositions, providing some information that could prove useful in the investigation.
Kotoshirodo noted that “there are a lot of things we are working on that Mr. Lull has not helped us on.”
Lull, who defrauded a range of Kaua‘i investors of up to $50 million in a so-called “Ponzi scheme” where he used new investments to pay off balances coming due not unlike the $50 billion scam run by Bernard Madoff, pleaded guilty to fraud last September. He could face up to 10 years in prison when he is sentenced.
