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The Honolulu Advertiser
Updated at 6:30 p.m., Friday, April 24, 2009

Alleged Ponzi schemer is appealing state order

A Honolulu resident that was ordered by the state to help pay a $1 million fine along with restitution to investors of an alleged Ponzi scheme is appealing the order.

Joseph W. Sullivan filed a notice of appeal with state Circuit Court this week.

Earlier this month the Hawai'i Commissioner of Securities, Tung Chan, issued a final order against Sullivan, Chad S. Morisato and their related business, The Swiss Group, saying they fraudulently solicited $8.1 million investors here and on the Mainland in a Ponzi scheme.

Also this week, Federal Public Defender Alexander Silvert filed a notice in U.S. District Court saying he had been appointed legal counsel for Morisato, because Morisato had been informed by several people that he may be the subject of an FBI investigation into an alleged Ponzi scheme.