David Low, a businessman crowned as the state’s “Fittest CEO” in 2007, has some unflattering questions to answer.

Hawaii Commissioner of Securities Tung Chang has issued a cease and desist against Low for allegedly violating state securities laws.

The Department of Commerce and Consumer Affairs made this statement today:

The order asserts that between February 2010 and April 2012, Low solicited three investors to purchase securities in the form of investment contracts from Hawaii Capital Management, LLC. Low allegedly told the investors that their money would be invested in an annuity, Roth IRA, or “pooled” investment for their future use and benefit. As a result, the investors furnished a combined total of $257,626.18 to Low and his company. 

However, none of the investors’ money were ever invested as promised. Instead, Low used the investors’ money to purchase securities for himself and for personal expenses, including payments to Mercedes Benz, Audi Hawaii, and the City & County of Honolulu for registration of a Ferrari. Low also used money for retail purchases, groceries, dining and entertainment, gym membership, rent, credit card payments, and cash withdrawals. 

Low faces a $200,000 fine, a permanent injunction against transacting securities in the state, rescission and restitution for the investors.

UPDATED: Low was picked up on the Insurance Division’s $110,000 bench warrant Tuesday, according to DCCA spokesman Brent Suyama.

He faces five counts of Theft 1, all B felonies, meaning over $20,000 each with potentially 10 years jail each. Arraignment is at 8:30 a.m., Monday, before Judge Perkins, Suyama said.

— Nathan Eagle

Photo: Money. (401(K) 2013 via Flickr)