SEC Drops Case Against Broke Fraudster

Oct 14 2011 | 7:58am ET

Convicted hedge fund fraudster Koji Goto has nothing left to lose, so the Securities and Exchange Commission has stopped trying to take it from him.

The regulator dismissed its civil complaint against Goto and Shaleen Cassily. Goto has already been sentenced to 25 to 75 years in prison and had all of his assets liquidated to cover a $3.2 million restitution order. Goto, who filed for bankruptcy in 2004, has also been found incompetent to face further trials.

The SEC sued Goto, a former John Hancock Financial Services broker, for stealing more than $5 million from clients. According to the SEC, Goto told them that he would invest the money with a Boston hedge fund and in a food services business.

The SEC sued Goto in 2003. He was convicted the following year in New Hampshire state court of theft and unlawful securities practices.

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