A preliminary cease and desist order has been issued by Hawai`i Commissioner of Securities Tung Chan against Leigh K. Matsuyoshi, who does business as L.K. Matsuyoshi, Inc. of Lihue.

Tung’s order alleges Matsuyoshi sold unregistered securities in the form of investment contracts to Hawaiçi investors totaling more than $1 million. It also alleges Matsuyoshi used more than $400,000 of client money to pay her personal credit card debt.
Chan is alleging Matsuyoshi violated the state’s securities registration and antifraud provisions. She is seeking a civil penalty of $500,000 in addition to a permanent injunction against future violations, rescission and restitution for investors.