Kobayashi Gets 5 years for $5M

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    NEWSLETTERS

    Stephen Kobayashi's former employer UBS issued the following statement about this story: "Mr. Kobayashi who resigned from UBS in September 2009, acted on his own and committed criminal acts. As soon as Mr. Kobayashi's misconduct came to the firm's attention, we reported it to the SEC and other government authorities. Mr. Kobayashi's actions do not represent the high standards of UBS." (Published Tuesday, Sep 13, 2011)

    A former financial adviser from Livermore has been sentenced in  federal court in Oakland to more than five years in prison for stealing $5.4  million from his clients.
        Steven Kobayashi, 39, of Livermore, was an adviser in the Walnut  Creek office of United Bank of Switzerland Financial Services Inc. from 2006  to 2009.

        He admitted in his guilty plea in June to stealing more than $5.4  million from clients -- including relatives and friends -- during that time  by transferring their money to his personal bank accounts.     He pleaded guilty before U.S. District Judge Claudia Wilken to one  count of wire fraud and one count of money laundering.
        He was sentenced by Wilken on Wednesday to five years and five  months in prison. Prosecutors and Kobayashi had agreed to the term in his  plea agreement.
        Prosecutors said in a sentencing brief that Kobayashi spent the  money on gambling, drinking, cars and prostitutes.
        They wrote that some of the victimized relatives and friends "are  emotionally and financially devastated by Kobayashi's actions, reporting the  loss of most of their life savings."
        U.S. Attorney Melinda Haag said the victims have not yet received  any of their money back. Wilken will hold a hearing on Oct. 19 to determine  the amount of restitution due to the defrauded clients.
        In a letter submitted to the court, Kobayashi said he accepts  responsibility and apologizes for "the hurt, emotional and financial, that I  have inflicted on so many people."
        His defense lawyer said in a sentencing brief that Kobayashi hopes  to obtain treatment while iny people."
        His defense lawyer said in a sentencing brief that Kobayashi hopes  to obtain treatment while in prison for his alcohol and gambling addictions.

    Bay City News