ATLANTA — The U.S. Securities and Exchange Commission has initiated a settled civil action against a Georgia investment adviser who is accused of misappropriating nearly $10 million from an elderly client and the estate of the client’s deceased sister, as announced by federal regulators.
The SEC reported that Ejiro Ode Okuma has agreed to pay over $13 million to settle allegations of breaching his fiduciary duties and misusing client assets for personal gain. The lawsuit was filed on January 30 in the U.S. District Court for the Northern District of Georgia.
According to the SEC’s complaint, Okuma started misappropriating funds in March 2022. Regulators claim that in February 2023, without the client’s knowledge or consent, Okuma opened a brokerage account for one of the client’s trusts and transferred over $9 million in securities from the client’s other accounts.
The SEC stated that Okuma took measures to hide the scheme, such as enabling check-writing privileges on the new account, creating login credentials that gave him control, and setting up an email account to impersonate the client. Investigators allege he used the misappropriated funds to finance a multimillion-dollar home, purchase vehicles, and acquire vacation properties.
Without admitting or denying the allegations, Okuma has consented to a final judgment that will permanently prohibit him from violating federal securities laws and from engaging in most securities transactions, except for trading in his own personal accounts on national exchanges. The settlement, pending court approval, mandates Okuma to pay approximately $9 million in disgorgement, over $1 million in interest, and a $3 million civil penalty.
