Dirty Money, Dirty Politics and Bishop Estate
Stealing the Legacy of a Hawaiian Princess
Sightings from The Catbird Seat
~ o ~
PART III - The Scandals Begin Again....
* * *
Where we left off in Part II ...
Many of the key players in the conspiracy are still in place.
Only time will tell if these powerful birds of prey can succeed in sinking their talons even deeper into the corpus of the estate. Let us all pray that persons of honor and integrity are selected as future trustees and that Princess Pauahi's legacy is restored to her deserving children....
* * *
November 8, 2003
Sex arrest acknowledged on Kamehameha campus
By Rod Antone, Honolulu Star-Bulletin
Kamehameha Schools officials acknowledged last night that one of their high school students was arrested yesterday for allegedly sexually assaulting another student on campus.
This is the third allegation of sexual misconduct by Kamehameha students in the last week.
“We are deeply disturbed by the suggestion of widespread sexual misconduct on campus,” said a Kamehameha press release issued last night. “The kinds of behavior that have been alleged in the last week are not condoned and are not tolerated at Kamehameha Schools.”
Honolulu police reported yesterday that they arrested a 15-year-old male for allegedly raping a 14-year-old female classmate over eight months. According to police, the victim said the assaults took place during school hours and on campus.
The juvenile suspect was arrested on two counts of first-degree sexual assault and one count of third-degree sexual assault. He has been released pending investigation.
Though police identified the campus only as a “Honolulu-area high school,” Kamehameha School officials confirmed the arrest of one of their students last night.
The press release also stated that yesterday’s arrest was a “police matter,” and therefor it is “inappropriate for us to comment while the investigation is under way.”...
A school spokesman said that yesterday’s arrest is not related to the two earlier cases....
In response to the alleged videotaping incident, schools officials said that when they first heard about it, the “immediately began a review of the allegations” and found that there were “a number of students involved, and there were different versions of what actually occurred.”
“Our investigation lasted a week and will result in disciplinary action,” the press release said. “We are in the process of assembling a team of experts to help us review our sexual harassment policies and identify additional actions we can take to encourage and influence health, appropriate, respectful attitudes, relationships and behaviors.
November 5, 2003
Student sex cases rock Kamehameha
A suit claims actions by a male student
led a girl to leave the school
By Mary Adamski, Honolulu Star-Bulletin
Kamehameha Schools officials, who have dealt with numerous scandals over the past seven years, are now grappling with two separate cases of alleged sexual misconduct by students, both involving current or former football players.
In a lawsuit filed yesterday, a former Kamehameha student alleged that she was forced to leave the school in her sophomore year because campus officials would not expel a football player who, she said, had sexually assaulted and harassed her since seventh grade.
The 17-year-old girl and her mother filed the suit in U.S. District Court yesterday under a federal statute that bans sexual discrimination in schools. They did not file a police report about the incidents, which allegedly began in 1998 and continued until the girl left the Alewa campus in 2001 when Kamehameha paid her tuition to another school.
It is the second report within the past week of alleged student sexual misconduct at the private school.
The 17-year-old boy accused in the suit is not one of six Kamehameha football players who were suspended from playing in a key game Saturday, reportedly after a videotape surfaced of some of the boys having sex with a female student.
Attorney David Simons, who is representing the girl's family, said they decided to file now, "following the events of this weekend." He said the two incidents demonstrate a need for an independent investigation similar to the outside scrutiny into actions of the schools' trustees five years ago.
The investigation should seek "to determine whether or not there is favoritism shown to athletes or other students based on who they are, not what they do," and whether there is a consistent and fair sexual harassment policy, he said.
In a statement, Kamehameha Schools officials chided Simons for "attempting to capitalize on the current allegations involving students at Kamehameha Schools." It was the school's first official comment on televised reports over the weekend of the student sex video.
"The current allegations involving videotapes and Kamehameha students are very serious," the release said. "They affect the future of the students involved, and they require a thorough and balanced review. If any disciplinary actions are appropriate, they will be implemented in a confidential manner between the students involved and Kamehameha Schools."
School spokesman Kekoa Paulsen said actions such as suspension or expulsion will not be announced to the public.
A source familiar with the latest alleged incident told the Star-Bulletin that two football players were videotaped having sex with a female student, and the other boys were benched because they knew but did not tell school authorities.
Honolulu police are not investigating the allegations involving the videotape because no one has submitted a complaint or brought in evidence, according to police spokeswoman Michelle Yu. State law prohibits possession and production of child pornography, which includes videotapes depicting minors engaged in sexual conduct.
The suit filed yesterday does not name the plaintiffs or defendants to protect the two minors, said Simons. It alleges:
>> Complaints of sexual harassment from five girls led the school to suspend the boy for three days in 1998.
>> Only after her daughter was hospitalized for attempting suicide by taking Tylenol tablets did the girl's mother learn that she had complained of sexual harassment and received campus counseling.
>> No action was taken even after the boy violated a campus restraining order to stay away from the girl. Among numerous incidents detailed was one in which the girl "was pressured and harassed ... into having sexual intercourse."
>> A psychiatrist advised that she leave the school as long as he remained. The school "agreed to pay for Jane Doe's psychologic counseling and her tuition to attend (another private school), but did not take action against" the boy.
Simons said the boy was a football player until he was let go from the school in fall 2002, his junior year, for reasons not revealed in conferences with school attorneys.
"We tried in February to have my client readmitted to the school, but the school said no," he said.
The school replied that "many of the allegations in Mr. Simons' complaint are simply not true and will be addressed in court."
It described the allegations as "a situation that occurred several years ago, and one in which Kamehameha Schools did everything it could to support and assist his client." The statement said the schools paid for the girl's "treatment and educational support" since she left the campus.
Kamehameha has endured numerous scandals since 1997, when its former trustees were accused of mismanaging the multi-billion-dollar trust devoted to educating children of native Hawaiian ancestry. Subsequent investigations led to the resignation of the former trustees.
More recently, the schools' CEO, Hamilton McCubbin, resigned amid allegations of an inappropriate relationship with a female employee. He has denied the allegation. Also, the school faces two legal challenges to its Hawaiians-only preference admissions system.
(Star-Bulletin reporter Susan Essoyan contributed to this report.)
For a look behind the legal facade, GO TO > > > Harmon’s Letters to the New Trustees
October 21, 2003
Ex-teacher sentenced
in sex assault
By Jason Armstrong and Cris Loos, Hawaii Tribune-Herald
A former Honokaa teacher will spend a year in jail for sexually assaulting a 13-year-old boy placed under his care.
Tranquilino “Kia” Fronda Jr., 58, also will serve 20 years probation and must register as a sex offender, Circuit Judge Terence T. Yoshioka ruled Monday....
In rejecting the defense’s plea for no jail time, Yoshioka said he wants to deter others from committing rape and the satisfy the public that an adequate sentence was imposed....
In a letter to Yoshioka, the boy’s mother said Kamehameha Schools, the Boy Scouts and the Queen Liliuokalani Children’s Center identified Fronda as a suitable mentor for her two boys. As a result, she allowed them to attend summer immersion programs “Uncle Kia” ran on his farm....
When the younger boy later started getting into trouble and acting rebellious, the woman said she sought help from the man with whom the children had placed their trust. The woman and Fronda agreed for the boy to spend two months with him.
After getting into more legal trouble, the boy again was placed under Fronda’s supervision and went to another immersion program last summer.
It was during this time that the boy confessed that he was sexually assaulted, his mother said.
The woman said she then confronted Fronda, who said, “I never did anything to (the boy) that he didn’t let me do.”...
“Quite frankly, I don’t see how (jail) would benefit Mr. Fronda or, quite frankly, society,” his attorney, Stanton Oshiro, told the court.
Fronda confessed to police and is not an “enlightened individual” who doesn’t need to be taught a lesson, Oshiro said....
He agreed to “expedited sentencing,” a process under which a defendant waives a grand jury hearing or trial and goes directly to sentencing.
In exchange, Fronda became eligible for probation. First-degree sexual assault usually carries a 20-year prison sentence.
“The purpose in expedited sentencing is to protect the child and not force the child to testify at grand jury and go through the horrors of a trial,” Deputy Prosecutor Darren Ching previously told the Tribune-Herald.
Fronda taught at Honokaa High and Intermediate School from November 2000 until August 2001, according to the state Department of Education....
Lance Niimi, unit manager of the Hilo office of the Queen Liliuokalani Children’s Center, was Fronda’s supervisor when he was affiliated with the center.
She declined to give any specifics about Fronda’s work with children....
October 25, 2003
Estate selects land managers
By Andrew Gomes, Honolulu Advertiser
The nonprofit trust recently informed the companies — CB Richard Ellis Hawaii Inc., Colliers Monroe Friedlander, MMI Realty Services Inc. and Sofos Realty Corp. — of its intent to assign them management contracts, which may still need approval from top officials at Kamehameha Schools....
The $5 billion trust, set up in 1884 to help educate children of Hawaiian ancestry, announced the outsourcing plan in August as part of an effort to improve efficiency by reducing management costs, taking a more passive role in its investments and making more resources available to support educational programs.
More than 100 Kamehameha Schools employees are expected to be affected, though the estate said it would negotiate with contractors to hire estate employees. Those not retained will be eligible for separation packages including pay and training support....
... Continued at CB Richard Ellis
July 16, 2003
How Kamehameha
Admitted A Haole
By Bob Jones, Midweek Magazine
You thought the 1997 “Broken Trust” essay and subsequent ouster of all the Bishop Estate trustees except Oswald Stender ended the internal fighting at Kamehameha Schools?
Not by a long shot. It’s back, just as bitter and the newest trustees have stepped into a legal minefield that could take their legs off and alter the school forever. They’ve in effect invited a federal lawsuit and might cause the somnambular Probate Court and Special Master to wake up and notice that something’s very wrong. And then there’s the Internal Revenue Service.
And when some activist members of the Kamehameha Schools family get to the end of this column they should be pounding on trustees’ doors and demanding explanations.
School spokesman Kekoa Paulson says “Kamehameha Schools' admissions policy and procedures were followed throughout the 2002 process. Both the attorney general's office and the court appointed master have been briefed on the questions that have been raised about the situation in Maui last year, and neither of them have voiced concern over how the policy had been applied.”
I wonder if they had these facts.
My story goes back to November of 2001 and April-May of 2002 when K.S. candidates for admission were being screened and interviewed and selected. That was an unusual time of low applications for the new Maui campus and, so, low openings —— the latter set by the school based on the expectation of how many would apply.
According to well-sourced information, notes and personal recollections I gathered last week, the trustees and some administration officials at the schools manipulated the vacancies in 8th grade in order to admit the first non-Hawaiian student since some haole-faculty kids were let in more than 40 years ago. Then the trustees decided to keep silent about that shattering decision and did —— until there was a news leak from Maui campus officials in July 2002.
Faced with a Hawaiian community uproar, the trustees met in an emergency session with advisory board members and decided to say they had only admitted non-Hawaiian Kalani Rossel because there were no more qualified Hawaiians. Material and personal recollections I gathered show that was an untrue statement. There were two qualified Hawaiian girls on the list of qualified applicants, vying for one remaining 8th-grade vacancy that April.
But the vacancy was on the boys’ side. The school does split the vacancies by gender but does not require total gender equity. So the one boys’-side vacancy was awarded to one of the Hawaiian girls. That left the preference-qualified girl and non-preference-qualified Rossel unaccepted. Both had exceeded the test-score cut-off.
That should have been the end of it under KS policy in effect in 2002; sorry, but our admissions are now closed. That no-fudging policy had been adopted to end the old days when “red dots” put by certain applicants’ names meant they were friends of friends of the old trustees and that room should be created for them. The Probate Court had ordered fair, transparent admissions implemented by school officials, not the trustees.
In apparent disregard of that mandate, the meeting’s notes show, the trustees with the blessing of then chief legal officer Colleen Wong (now the schools’ interim chief executive officer) created two new vacancies and admitted the other Hawaiian girl and the non-Hawaiian Rossel.
Then after fixing the process in order to admit him, they agreed to say nothing publicly about Rossel, whose parents say they marked right on the initial application that he was not Hawaiian. The trustees claim they had planned to make an announcement of admitting the first non-Hawaiian later in the year. A source in the admissions process tells me that despite my doubts, that’s true. They wanted to wait until Rossel was in, it was an irreversible, done deal, and then they’d take the heat but could say there’s was nothing they could do about it. They’d also keep claiming it was only because of no qualified Hawaiian applicants and hope the community bitching would go away.
According to material provided, an internal audit confirmed that trustees previously deviated from Hawaiian preference during admissions with a non-Hawaiian student who subsequently withdrew before the school year began. It was the first effort to slip in a non-Hawaiian. Everyone kept quiet on that, too, and it didn’t cause a problem because of the student’s eventual withdrawal.
It’s rather amazing that the trustees could ever have thought such an explosive decision as the Rossel case could be kept secret. Did they think that since this new student’s first name was Kalani nobody would question his ethnicity and it would be a non-issue? Surely they knew there was high risk of a leak.
But why would the trustees do anything so stupidly risky and guaranteed to make many Hawaiians go ballistic without some advance discussion and community preparation?
The trustees have tended to play a very cagey game of balancing between the Princess Pauahi Bishop’s will (as interpreted by her haole husband after her death to favor Hawaiian-blood children) and the lurking problem of a federal-tax-exempt trust potentially being cited as racist. They said after this started blowing up last year that “we feel we could not change the admissions policy from one of preference to one of exclusion. We must stand by the decision, despite the pain it has caused. We do regret the way the decision was communicated, and we have apologized for that. The process of evaluating individual applicants is confidential and must be kept private in order to protect the integrity of the trust and the privacy of applicants.”
The more likely answer is that the trustees feared a lawsuit by the Rossel family if their son was excluded in a year of very few qualified-by-test-scores Hawaiian applicants. They wanted to dodge a legal bullet and did not want to make an announcement that would arouse the wrath of many Hawaiians who feel the school should stay Hawaiian.
The operational culture established by the Probate Court after the scandal of the ‘97 shake-up of trustees says that admissions were to be controlled by the new CEO, Hamilton McCubbin, and chief admissions officer Wayne Chang. But those two were overruled by the trustees and legal officer Wong....
Now here’s the corker. Up through the Rossel affair, K.S. admissions used the term qualified Hawaiians. That meant cut-off test scores. But that also lowered the number of OK applicants and opened the way for non-Hawaiians to get in if Hawaiian applications were very low. So the trustees changed the rules for school year 2003. No more test scores. Just a preference for anyone with any amount of Hawaiian blood.
The current website says “Hawaiian preference so far as permitted by law.” Ironically, that no-more-test-standards decision has really complicated things for the Hawaiians-only crowd.
Here’s why:
A lawsuit was filed last month in Hawaii federal court on behalf of an unnamed non-Hawaiian student who says that his civil rights were violated when the school denied him admission for this school year due to race. The attorneys are Sacramento, Calif., constitutional law expert Eric Grant, and local lawyer John Goemans, who successfully challenged the Hawaiian-only voting for the Office of Hawaiian Affairs elections three years ago in the Rice vs. Cayetano case. They will argue that if there are no test-score or other standards for admission, other than having some drops of Hawaiian blood, isn’t that illegal racial exclusion?
Many law experts say you can’t be “legal” with the IRS tax-exemptions code if you admit strictly on the basis of race, which K.S. now does. That word “preference” is unlikely to save it. It would fly in the face of the latest Supreme Court decision on affirmative action and many other, older federal court decisions. The trustees have been painfully aware of this conundrum and even stopped taking ROTC money so they could say they don’t get federal money.
Grant and Goemans will argue that a tax exemption is federal money.
New shenanigans like those that brought in the IRS in ‘97 over trustees’ bloated salaries could mean the end of Kamehameha Schools’ special tax status. When the feds stomped down on Bob Jones University for religious exclusion, the school had to pony up six years’ worth of back taxes. It’s been estimated that Kamehameha Schools could be assessed a billion dollars if it were to be found in past and current violation of its tax-exempt status.
Four of the trustees involved in that contentious Maui admission decision last year—— chair Constance Lau, vice-chair Nainoa Thompson, Douglas Ing and Robert Kihune —— are said to favor Hawaiian-only admissions. Only the fifth trustee, Diane Plotts, has been mentioned in news stories as amenable to opening the schools to everyone. My sources say she has voiced that opinion privately as well.
On top of these calamitous problems, Kamehameha Schools has the issue of the forced departure and golden parachute severance for ousted CEO Hamilton McCubbin over an alleged improper relationship with his secretary. He has denied that it was a sexual affair. McCubbin is married and also was alleged to have had an improper relationship with a woman when he was at the University of Wisconsin. He is suing the UW in federal court for defamation over that.
If you believe McCubbin’s position that he’s simply the victim of the jealousy of two former secretaries who were demoted in favor of the woman in question, then the trustees’ decision to use that matter to force him out could have been the culmination of something much bigger —— McCubbin’s strained relations with a board of heavyweights not content to let a newly-named CEO run everything he wanted to run. I emphasize could have been.
It’s been no campus secret that current trustee Douglas Ing and former trustee Oswald Stender thought the better-politically-connected Michael Chun should have been given the top job. Chun was demoted and subordinated to McCubbin by McCubbin when he was hired away from the University of Wisconsin to run what used to be called Bishop Estate and is now just Kamehameha Schools, with about a $6-billion corpus and ties to nearly every career politician in Hawaii.
Most of its cash is at First Hawaiian Bank, with smaller amounts at other institutions, but not American Savings Bank because trustee Connie Lau also sits on the board of directors of HEI Inc., that bank’s parent company. The competition for that money is not insignificant in a time of extremely low-interest-payout and big demand for new mortgages.
There have been complaints at K.S. that McCubbin was too publicity hungry or too egotistic. On the other hand, trustees traditionally have been campus butt-inskies and never more so than in the late ‘90s when Lokelani Lindsey instituted personal micro-management. (Lindsey has been convicted in a money-laundering case and is scheduled to start serving prison time in August.)
It’s gotten so petty and personal at K.S. that the trustees had the latest Ke Alii Pauahi Foundation annual report re-printed at substantial cost (some say $50,000) in order to erase McCubbin’s name and picture, even though he was the CEO and also president of the foundation for the period covered by the report and was the one who approved the report before the alterations....
I like the observation of a sympathetic, long-time KS faculty member, now retired: “The problem up there is that everything they do is done to excess.”
I don’t know how much more of this the school can stand and still fully function.
Says a well-known alumnus involved in spreading word to Hawaiians of this current dispute: “The previous board was accused of a quid pro quo style. Are we witnessing an emergence of the same mind set, along with a penchant for micro-management and an organizational culture focused on personalities, with power rather than service the dominant concern and with personal integrity cast aside?”
The lackadaisical Probate Court needs to examine who is actually running admissions, the CEO as directed by that court and the IRS or the trustees? The state attorney general needs to get cracking on potential fiduciary violations if it can be shown that the trustees lied in the Rossel case, and the IRS needs to consider pulling the tax-exemption because of too many violations of the spirit of federal law on racial exclusions.
The trustees need to come clean to the Hawaiian community.
Hamilton McCubbin and former admissions chief Wayne Chang and former legal officer Colleen Wong should be subpoenaed by somebody to testify with immunity about the admissions blunder and the tug-of-war over who runs the school.
End the feints and deceits.
Some candor, please, for a change.
– E-mail Bob Jones at BanyanHouse@hula.net
May 5, 2003
McCubbin out as CEO of Kamehameha trust
By Dan Nakaso, Honolulu Advertiser
Hamilton McCubbin, who brought stability to the Kamehameha Schools after years of scandal and controversy, announced his resignation today as the trust’s first chief executive officer.
McCubbin, 61, signed a new three-year contract with Kamehameha on Feb. 1 but suddenly resigned on Friday. He said in an interview today that he resigned to spend more time with his grandchildren and looked to possibly return to teaching at the university level.
“I really am looking to my health,” he said. “I have a son in the Middle East and family considerations.”
However, a person familiar with the situation said the trustees for months had been investigating a complaint of an inappropriate relationship between McCubbin and a female employee.
The person asked not to be identified because of the sensitivity of the situation and the fact the trustees did not plan to talk publicly about the allegation....
... Continued at: Hamilton McCubbin
May 17, 2003
Trust sets record on educational spending
Despite losing money, Kamehameha Schools
still spends $144.2 million
By Sally Apgar, Honolulu Star-Bulletin.com
Kamehameha Schools spent a record $144.2 million on educational programs in its last fiscal year, according to records filed with the Internal Revenue Service.
The money was spent on its preschool to grade 12 students and to reach thousands more Hawaiian children in off-campus educational programs or financial aid.
"The emphasis and focus of the trust has been extending the legacy to more Hawaii children, and I think the financial activity of the trust reflects that," Kamehameha spokesman Kekoa Paulsen said yesterday about the increase in educational spending.
At the same time, Kamehameha, like many companies and institutions over the past two fiscal years, was hit hard in the stock market and on other investments. Unlike the previous two years, last year's losses were not offset by the whopping windfall the trust received from selling its stake in the New York investment firm of Goldman Sachs LLP after it went public.
For the year ending June 30, 2002, the trust listed a loss of $93 million for one group of investments compared to a gain of $548 million the year before when it benefited from selling shares in Goldman Sacks.
The trust, which has $4 billion in assets, had revenues of $174 million in fiscal 2002 compared with revenues of $303.5 million the year earlier when the trust spent $138.7 million on educational programs.
What the trust spends on educational programs is budgeted a year or more ahead of time so it is not directly tied to the revenues earned in the year the money is spent.
In fiscal 2002, Kamehameha educated 4,835 students in its preschool-to-grade 12 program, which serves about 7 percent of native Hawaiian children.
"We reach more than 12,000 other students through various programs outside of the campuses," said Paulsen....
In addition to education programs, Kamehameha spent $120 million on capital and major repair projects. Among the major projects is the design and initial construction of high school facilities for Kamehameha's Maui and Hawaii campuses.
In the late 1990s, when the five trustees each earned between $800,000 and $1 million a year, the big news of the annual tax return typically was how much they made. But since the investigations of the IRS and the state attorney general and the ouster of the previous board, major educational and financial reforms have been instituted.
Last year, all five trustees together made a total of $525,000. The trustees' individual compensations ranged from a low of $99,000 to a high of $113,500.
The highest paid officer was Wendell Brooks Jr., the trust's former chief investment officer, who received $504,160 in salary and $4,088 in employee benefits. Brooks left in November 2001 and the amount included a severance package, said Paulsen.
Hamilton McCubbin, who resigned recently as chancellor and chief executive, was paid $350,240 in salary, $8,608 in benefits and $103,500 for his expense account and other allowances. McCubbin has a $400,000 severance package with the trust.
Colleen Wong, the chief legal officer for the trust, who has been appointed acting CEO, was paid $168,831 in salary and another $9,231 in benefits. Mike Chun, headmaster of the schools, was paid $195,057 and $1,111 in benefits.
During the height of the scandal of the late 1990s, the trust maintained armies of inside and outside accountants and lawyers. Now, the highest paid outside firm is Group 70 International, a Honolulu architectural firm that was paid $5 million.
Arthur Andersen, the accounting and management consulting firm, came in second at $1.5 million.
January 29, 2003
Education executive resigns
from isle trust
By Rick Daysog, Honolulu Star-Bulletin
Another top executive with the Kamehameha Schools has resigned from the $6 billion trust.
The estate announced yesterday that Dudley "Skip" Hare, the estate's vice president for education and its first chief education officer, will step down Friday after a year-and-a-half tenure.
Hare's planned departure follows last month's resignation of Chief Financial Officer Eric Yeaman. Yeaman is now chief financial officer and treasurer of Hawaiian Electric Industries Inc.
Hare will return to the educational consulting field in which he had worked before joining the Kamehameha Schools.
"We've been very pleased with the leadership and guidance Dr. Hare has provided," said Kamehameha Schools Chief Executive Officer Hamilton McCubbin.
"He joined Kamehameha at a critical time of major growth and development, and he worked closely with me to design and direct important new programs."
Hare was not immediately available for comment, but the trust said that Hare decided to step down after major portions of the estate's education group was reorganized.
McCubbin said he had wanted Hare to remain until the end of the year but Hare decided to leave at the end of the month after discussing matters with his family.
During his tenure at the Kamehameha Schools, Hare worked on the completion of the trust's two new neighbor island campuses, marshaled support for the trust's new charter schools and implemented a new preschool scholarship program.
Hare is the estate's first chief education officer. The position was created by the estate's board in the wake of the three-year campus controversy that led to the 1999 ouster of former trustees Henry Peters, Richard "Dickie" Wong, Lokelani Lindsey, Gerard Jervis and Oswald Stender.
Before joining the Kamehameha Schools, Hare served as executive director of the Westchester Education Coalition, a nonprofit organization formed by corporations, government agencies and public schools in Westchester County, N.Y.
The coalition helped build community-based technology centers for low-income neighborhoods.
Between 1995 and 1998, Hare served as district superintendent of the Putnam/Northern Westchester Board of Cooperative Educational Services which was responsible for staff, curriculum development and other services for 18 school districts in New York.
The Catbird Chronicles:
THE ‘NEW’ KAMEHAMEHA SCHOOLS
JAN. 1, 2003 - DEC. 31, 2003
2003 - Jan 6. Kirk Belsby, a former Arthur Andersen partner, joins Kamehameha as their new V.P. for Endowment.
2003 - Jan 29. The estate announces that Dudley "Skip" Hare, the estate's vice president for education and its first chief education officer, will step down Friday after a year-and-a-half tenure.
2003 - Mar 21. Hawaiian Airlines files for Chapter 11 bankruptcy (again).
2003 - May 2. CEO Hamilton McCubbin hands in his resignation, to take effect immediately. News reporters reveal that accusations had been made against McCubbin that he had inappropriate sexual relations with a female employee - and that he may have left his previous employment at the University of Wisconsin for similar reasons. Accusations were “internally investigated” by Kamehameha’s outhouse law firm, Torkildson, Katz, Fonseca, Jaffe, Moore & Hetherington.
2003 - July 24. Former Kamehameha Schools trustee Henry Peters sues the estate’s former chief legal officer Nathan Aipa, alleging he improperly disclosed confidential information.
2003 - Nov. Sex scandals involving Kamehameha students hit newspapers. Several students arrested.
2003 - Dec. The trustees announce they have chosen a new CEO - Dee Jay Mailer - to replace Dr. Hamilton McCubbin.
2004 - Continued at > > > PART IV: THE CONSPIRACIES CONTINUE...
~ o ~
NOW, IF YOU WANT TO TAKE A CLOSER LOOK AT SOME OF THE CAREFULLY HIDDEN NESTS THAT CONTINUE TO BE INHABITED BY BIRDS OF LIKE FEATHERS, JUST TRAIN YOUR FIELD GLASSES DIRECTLY BELOW!
\/
\/
\/
Arthur Andersen LLP - The company from whence Hamilton McCubbin and the new Trustees sought insight and integrity in their internal investigations and interesting investments.
See also: Eric Yeaman; Kirk Belsby
For more, GO TO > > > P-s-s-t, wanna buy a good audit?; The Story of Enron; XO Communications
Bedford Property Investors, Inc. - From a Bedford Properties press release: Bedford Property Investors, Inc. announced the appointment of Scott R. Whitney as Sr. V.P. and CFO. Whitney, 45, has been serving as Sr. VP/CFO of WCI Communities (a Bishop Estate investment) of Naples, Florida since 1995.
Before joining WCI Communities, Whitney was with Equity Group Investments, Inc. Prior to joining Equity Group Investments, Whitney worked with Balcor/American Express, Inc. as V.P. Banking and Sr. Controller.
* * *
From Midweek, 3/7/01, by Robert M. Rees: Years of pursuing the Bishop Estate trustees revealed more than the self-seeking greed and hubris of its five now-deposed incumbents.. . .
Bina Chun, widely referred to as “the queen of the school,” (and wife of Kamehameha Schools’ president, Michael Chun) had her own rewards. In 1992, for example, Bedford Properties paid her a cool million just for negotiating the purchase price of the Kalele Kai condo project with the trustees....
Blackstone Group - A New York-based private investment bank.
From The Conspirators: Secrets of an Iran-Contra Insider, by Al Martin:
GOVERNMENT FRAUD, CORPORATE FRAUD,
AND MORE FRAUD
People in the media often ask me to give them examples of frauds that began in Iran-Contra and continue to this day, albeit under different names.
It’s essentially the same fraud and the same cast of characters.
The examples I always give (about which I have substantive information, since I was involved in all three of the original frauds and also involved in marketing some of the partnerships for the secondary fraud) are the Ocean Reef Development Group, Ltd., the Omni Development Group, Ltd., and the Tri-Lateral Investment Group, Ltd.
Who are the common players who are links between all three deals during Iran-Contra ?
They are Frank Carlucci and Richard Armitage.
When Frank Carlucci and Richard Armitage left government service immediately after Iran-Contra (they literally had to leave in order to avoid being subpoenaed as part of the overall coverup), they became principals with Pete Peterson, the infamous Republican player and GOPAC money launderer, in the Blackstone Investment Group, which is a big organization.
Then they simply continued the same real estate development frauds which were begun under Iran-Contra.
This time all the original deals went bankrupt. A certain set of banks got burned. The property reverted to them, and then they refinanced the property again through Blackstone.
Subsequently they entered into an arrangement with another similar sounding company (there’s always been some confusion) the Capstone Development Group, which was also a post-Iran-Contra creature.
They are two separate organizations.
Some people will try to claim that Capstone was simply a subsidiary of Blackstone.
It is not. It is a separate company. Look at the directors. They are none other than Larry Eagleburger and Bernie Aronson, former co-workers of Frank Carlucci and Assistant Secretary of State, Richard Armitage.
However, the real estate frauds continued essentially until the early 1990s. It’s interesting to note how former government officials who were in the Reagan-Bush Administration during Iran-Contra profit by subsequent frauds – post-Iran-Contra frauds, if you will.
For instance, in 1994-95, there was the great Mexican Diversion Fraud, when Blackstone immediately opened an office in Mexico City to take advantage of American taxpayers’ money being lent to Mexico vis-a-vis the OCED and OPEC and other United States lending and/or guaranteeing agencies.
The opportunity to commit fraud against the United States Treasury during that Mexican bailout was just like a walk in the park.
You buy a busted out Mexican company for pennies on the dollar, pump it up, make it look nice, make sure you’ve got your hands out for a twenty or thirty million dollar loan from somebody else, like the IMF, or a direct United States lending agency, and you would be given Brady Bonds which could then be rehypothecated.
And it was such a scam.
Dinnerstein alone documented $130 million of fraud committed by former officials of the Reagan-Bush Administration during the “Great Mexican Turkey Shoot” as it became known.
And then what happened?
The Russian bailout.
Blackstone suddenly opened an office in Moscow and promptly proceeded to do the same thing again. This time they were raping and pillaging the American taxpayer with the same corporate schemes to get money out of U.S. agencies and/or collateral guaranty or fidelity instruments that could be rehypothecated.
It’s exactly the same scheme.
It was another $38 million of fraud according to our estimates at the time.
To follow fraud from the Iran-Contra period and to continue to do it to this day – just look at where the Blackstone Investment Group is opening up offices in the world....
* * *
January 26, 2001
Maui Hyatt sold for $200 million
By Andrew Gomes, Advertiser Staff Writer
New York based private investment bank The Blackstone Group has contracted to buy the Hyatt Regency Maui Resort for an estimated $200 million from KM Hawaii Inc., an affiliate of Japan-based transportation company Kokusai Jidosha, according to people familiar with the deal....
Founded in 1985 in part by the former chief executive of Lehman Brothers, Blackstone has been looking for upscale hotel investments in Hawai`i for several years. In 1998, the company unsuccessfully pursued one of Waikiki’s finest, the Halekulani.
People with knowledge of the Maui Hyatt deal said a purchase agreement for the 806-room Ka'anapali hotel —— Maui’s largest —— has been reached, and said Hyatt, which manages the property with about 1,000 employees, may be taking a small ownership interest in the hotel in exchange for a long-term management contract with Blackstone....
If completed, the Hyatt sale would follow sales of four other major properties in 1998: the Maui Marriott Resort for $152.5 million; the Westin Maui for $132 million; the Grand Wailea for $263.5 million; and the Kea Lani for an undisclosed amount.
The Hyatt Regency Maui, trophy of the Ka‘anapali resort, also has been attractive to buyers. It was developed for $80 million in 1980 by luxury resort developer Christopher Hemmeter and sold to KM Hawai‘i by Chicago real estate firm VMS Realty for $325 million in 1987.
KM Hawai‘i spent about $30 million on renovations in 1990 and 1996. Last year, the hotel opened a $3.5 million spa....
See also: Chris Hemmeter; VMS Realty
For more, GO TO > > > A Connecticut Yankee in King Kamehameha’s Court; Birds that Drink from Cesspools; The Blackstone Group; Paradise Paved; Predators in Paradise; The Washington Baseball Club; Yakuza Doodle Dandies
Bruce Nakaoka - Employed by Kamehameha Schools from 1987 through 1996, Bruce Nakaoka was appointed Director of the Real Estate Investment and Appraisal Division in September 1990, where he managed its domestic and international portfolio of real estate investments and administered the land appraisal department. He also served as President of six wholly-owned subsidiaries involved in developing and marketing mixed-use communities and office/distribution parks.
Prior to joining Kamehameha Schools, he was Assistant Vice President with Hastings, Martin & Conboy, the largest commercial real estate appraisal firm in Honolulu, where he conducted appraisals and feasibility studies of office buildings, shopping centers, hotels, timeshares, condominiums and research parks in Hawaii and Guam.
He is currently the Managing Director of MN Capital, and serves on Kamehameha Schools Board of Advisors.
See also: Bedford Properties; Eric Martinson; Kirk Belsby
For more, GO TO > > > RICO in Paradise