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The Honolulu Advertiser
Posted on: Tuesday, March 30, 2010

Man accused of defrauding Hawaii investors pleads not guilty

Advertiser Staff

Hawaii news photo - The Honolulu Advertiser

Patrick Rakotonanahary leaves the US District Court.

BRUCE ASATO | The Honolulu Advertiser

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Alleged Ponzi schemer Patrick Rakotonanahary on Monday pleaded not guilty in federal court to 21 counts of wire fraud.

U.S. Magistrate Judge Leslie Kobayashi set a June 2 trial date.

Federal authorities allege that Rakotonanahary, 34, headed a company called Cyber Market Group LLC that promised investment returns of between 6 percent and 10 percent a week and took in $10.2 million from 100 victims between Dec. 2007 and May 2009.

The victims included 64 people from Hawaii who invested a total of $7.79 million.

If convicted, Rakotonanahary faces a maximum of 20 years in prison per criminal count and fines of $250,000 for each offense.