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

June trial for Ponzi scheme suspect

Advertiser Staff

Hawaii news photo - The Honolulu Advertiser

Patrick Rakotonanahary, left, arrives with his attorney, Rustam Barbee, right front, for his arraignment in District Court. Rakotonanahary pleaded not guilty to 21 counts of wire fraud.

BRUCE ASATO | The Honolulu Advertiser

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Alleged Ponzi scheme operator Patrick Rakotonanahary yesterday 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 December 2007 and May 2009.

The victims included 64 people from Hawai'i who invested a total of $7.79 million.

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