Bobby N. Harmon, CPCU, ARM
September 19, 2003
VIA fax only @ (559) 490-1919
Ms. Julie A. Schermerhorn, Supervisor, and
Mr. Justin W. Schuck, Case Manager
American Arbitration Association
6795 North Palm Avenue, 2nd Floor
Fresno, California 93704
RE: Mary Lou Woo, Trustee v. Bobby N. Harmon
Case No. 74 166 00491 03 JUSC
Dear Ms. Schermerhorn and Mr. Schuck:
This responds to your letter dated September 18, 2003, in which you state regarding my letters of August 26, September 8, 15 and 17, 2003, and Steven Guttman’s letter of September 15, 2003: “After careful consideration of the parties’ contentions, the Association has determined that Judith Neustadter, Esq. will be reaffirmed as the arbitrator in the above matter.”
As I have stated in previous letters, there are many additional connections that I can offer to illustrate why Judith Neustadter’s position on the Maui Planning Commission should disqualify her as neutral arbitrator, but that it was my belief that the ones I had described should be sufficient. Since this, unfortunately, is not the case, I feel it is necessary to offer these additional comments to further support my request that Ms. Neustadter be disqualified.
In my letter of September 15, 2003, I gave details on the connections of Insurance Commissioner J.P. Schmidt to Maui County. In my letter of September 17th, I presented facts regarding the connections of Colbert Matsumoto to Kamehameha Schools and Hawaii’s Land Use Commission. This letter will identify further individuals and organizations that have similar conflicting personal, political and financial connections to this case:
Torkildson Katz Fonseca Moore & Hetherington
This law firm, which was named in my RICO lawsuit, and which falsely claims to be the authorized Claims Administrator for P&C Insurance Company in this arbitration matter, has also represented the County of Maui in federal court matters. To cite just one example: Casino et al. V. Inter-State Pharmacy Corp., et al.
Hiluhilu Developments LLC
This development company is seeking reclassification of more than 725 acres north and mauka of Kona International Airport to build a subdivision of more than 750 dwellings, an 18-hole golf course and a University Village. Hilulilu is a partnership of Guy Lam of Keauhou-Kona Construction Corp. and Charles Schwab, founder of the largest discount brokerage in the nation. Guy Lam has extensive connections with Kamehameha Schools and their for-profit development subsidiary, Keauhou-Kona Resort Company. Hiluliu has entered into a memorandum of agreement with the University of Hawaii to coordinate planning of the subdivision and UH-West Hawaii Center.
Guido Giacometti and Susan Tius
Guido Giacometti was the former head of Kamehameha Schools’ Asset Management Division; the former CEO for Grove Farm; and is the current bankruptcy trustee for Sukamto Sia. He is also the husband of Susan Tius who represented Kamehameha Schools in our bankruptcy case.
Susan Tius is also one of the individuals who I am claiming has a conflict of interest with Trustee Mary Lou Woo in this case. This conflict is one of the issues to be decided by this arbitration.
Susan Tius is also the attorney representing the Maui Home Supply bankruptcy estate. According to newspaper accounts, the Maui Home estate has hired the firm of Sterling & Tucker Inc. to help search for missing assets, but has yet to recover any.
The September, 2003 issue of Hawaii Business has an article on Hawaii’s 20 wealthiest landowners. The article states that Kamehameha Schools is Number 1, and is the state’s largest private landowner by far, today holding more than 366,000 acres on five islands. The article goes on to state that probably the most recent kamaaina landowner of consequence is AOL-Time Warner’s Stephen Case (No. 17).
According to Hawaii Business, “A Punahou School graduate and benefactor, Case has also placed a sizeable statewide footprint down through his 1999 purchase of a 41 percent minority interest in Maui Land and Pine (AMEX; MLP), and his more recent acquisition of Grove Farm and Lihue Plantation.
“Hawaii Business accorded Case a 41.4 percent share of the assessed value of MLP’s 41.4 percent share of the assessed value of MLP’s holdings, which gave him almost 12,000 acres on Maui and more than 40,000 Kauai acres for a total value of $300 million....”
Grove Farm
From the January 6, 2000 edition of the Honolulu Star-Bulletin:
Estate purchases Kauai land for $4 mil
By Rick Daysog
Kamehameha Schools, the state’s largest private landowner, has purchased a 15.5-acre parcel on Kauai from Grove Farm Co.
State land records show that the Kamehameha Schools paid more than 44 million for 40 percent of the lots in the Puhi Industrial Park near Lihue.
Completed on Dec. 27, the deal comes as the 135-year-old Grove Farm is considering an offer to buy the financially troubled, family-owned company....
From the January 7, 2000 edition of the Honolulu Star-Bulletin:
Judge appoints panel to nominate future trustees
By Rick Daysog
A state judge has appointed a blue-ribbon committee to nominate future trustees of the Kamehameha Schools.
In an eight-page order filed yesterday, Probate Judge Kevin Chang named isle educator Nona Beamer; local business and political leader Kenneth Brown; the estate’s past master, Colbert Matsumoto; Roy Benham, Oahu region president of the Kamehameha Schools Alumni Association; Kauai business executive Allan Smith; Kelvin Taketa, chief executive officer of the Hawaii Community Foundation; and attorney Melody MacKenzie, former head of the state Hawaiian Claims Office....
From a Letter to the Editor in the January 21, 2000 edition of the Honolulu Star-Bulletin:
A cozy relationship between company, estate
Grove Farm Co. Conducts a multimillion-dollar land deal with Kamehameha Schools. Grove Farm’s chief operating officer is appointed to the committee to select Kamehameha Schools’ permanent new trustees.
New era, indeed.
Jeffrey Shockey
From KUAI - Kauai News archive:
GROVE FARM FUTURE
Grove Farm, land rich and cash poor a year ago, is on the move on several fronts with a new owner, still adhering to the master plan created in the mid-80's. Last December, AOL/Time Warner head Steve Case purchased the 23 thousand acre farm once owned by Hawaiian Royalty....
Grove Farm hopes to be before the planning commission late next month for a zoning change involving about 40 acres on non-contiguous land south of the Kukui Grove Center, seeking commercial zoning for the old manager’s house off Nawiliwili Road....
From an Aon Risk Services Companies press release dated October 23, 1999:
Jeffrey H. Case has joined the downtown Honolulu offices of Aon Risk Services Companies Inc, as executive vice president in charge of marketing....
Case was previously vice president of Marsh Risk & Insurance Services, based in San Francisco....
Case graduated from Punahou School, earning a BA degree in economics from Denison University of Ohio and his Associate in Risk Management (ARM) designation from the Insurance Institute of America. He was born and raised in Honolulu along with brothers Steve Case, chairman of America Online, and Daniel H. Case III, chairman of the Bay Area financial firm, Hambrecht & Quist, and sister Karen Case....
Aon Risk Services Companies, Inc. is a subsidiary of Aon Corporation, a Fortune 500 company....
Aon Risk Services is the current Captive Manager for P&C Insurance Company, and was the office to which I submitted my Tender of Defense for the instant arbitration. Aon did not respond to my earlier claims against subsidiaries of Kamehameha Schools. When I submitted my Tender of Defense to them, they did not forward it to P&C’s independent claims adjuster, as is required. Instead, I received an initial response from Clyde Mark, President of P&C, who denied my tender. Later, I received a second declination from Matt Tsukazaki, of Torkildson Katz, who claimed to be representing both Kamehameha Schools and P&C Insurance Company in this matter. Consequently, Aon is also involved in my Complaint to Hawaii Insurance Commissioner J.P. Schmidt.
Aon took over the captive management duties for P&C from Marsh & McLennan which was another named Defendant in my RICO lawsuit.
Sterling & Tucker are the attorneys/accountants hired by Steven Guttman for the estate’s accounting matters. I have asked Mr. Guttman if they were responsible for advice that the Trustee issue the IRS Form 1099-MISC for the settlement I received, instead of the W-2 and 1099-R forms from Kamehameha Schools that I maintain are required. This is a disputed issue in Trustee Woo’s Complaint. To date, Mr. Guttman has not responded to my question.
Sterling & Tucker are also the accountants for Trustee Guido Giacometti in the Sukamto Sia bankruptcy. Michell Tucker formerly worked for Arthur Anderson & Co., which did extensive work for Kamehameha Schools.
There are dozens, if not hundreds, of other cases that I can cite showing similar conflicts-of-interest in this case, if you deem additional facts are necessary to disqualify Ms. Neustadter.
If, however, the conflicts I have described above, and in previous letters, are sufficient to disqualify Ms. Neustadter, then I would ask that this be done without further delay and that Daniel Bent be appointed as her replacement.
Sincerely,
Bobby N. Harmon
cc’s: Mary Lou Woo, Trustee, c/o Steven Guttman (via fax @ 808-529-7177)
J.P. Schmidt, Hawaii Insurance Commissioner (via fax @ 808-586-2806)
Terry Mullen, CEO/President, John Mullen & Co. (via fax @ 808-531-0053)
Casimer Fidele, Island Insurance Co. (via fax @ 808-539-9738)
Attorney General Mark Bennett (via fax @ 808-586-1239)
Dr. Randy Roth, Office of the Governor (via fax @ 808-586-0006)
Janet S. Hughes, Mgr., IRS (via fax @ 303-844-3596)
Ralph F. Boyd, Jr., et al., U.S. Dept. of Justice (via fax @ 202-514-1116)
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