The state Department of Commerce and Consumer Affairs issued a preliminary cease-and-desist order against a pair of Big Island women who allegedly swindled an investor out of $100,000.
According to the document dated Dec. 20, Leilani and Joycelyn Embernate and their financial consulting company, Twin Stars of the Pacific Inc., solicited and received $100,000 in 2008 from an unnamed Big Island investor. The funds, according to the DCCA, were for a real estate development project the women were planning to build in Kohanaiki Business Park in Kailua-Kona.
The women allegedly promised a 7 percent interest return after a year and a half.
The state is accusing the Embernates of not disclosing to the investor that the funds would be used to pay back a previous investor, to make a “loan” to one of Leilani Embernate’s businesses and for telephone, credit card and insurance payments.
The real estate development project never came to fruition, the DCCA said.
The state is seeking $50,000 in penalties, a refund to the investor, plus a permanent injunction to stop Leilani and Joycelyn Embernate from selling securities.
The DCCA revoked Leilani Embernate’s mortgage solicitor and real estate licenses in 2012. The state agency terminated Joycelyn Embernate’s mortgage solicitor license in 2009, and she forfeited her real estate license in 2012.
The Embernates have the right to appeal the order.
The DCCA website indicates Twin Stars, which had a Honokaa address, was dissolved. The last annual filings for the company were in 2009.
Anyone who was solicited by or transacted securities or investment-related business with Leilani Embernate, Joycelyn Embernate or Twin Stars of the Pacific, or who has pertinent information is urged to contact the DCCA’s Securities Enforcement Branch toll-free at 1-877-447-2267.
