Woo vs. Harmon - Witness Kirk Belsby

THE UNITED STATES DEPARTMENT OF JUSTICE

OFFICE OF THE U.S. TRUSTEE

David C. Farmer, Successor Trustee
vs.
Bobby N. Harmon

(Formerly Mary Lou Woo vs. Harmon and James Nicholson vs. Harmon)

CV05-00030 DAE/KSC

United States District Court, District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

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DEFENDANT’S WITNESSKIRK O. BELSBY

Vice President for Endowment, Kamehameha Schools; with Arthur Andersen, LLP from 1993-2002, ending his career there as Western United States Regional Managing Partner; had a direct role in the divestiture of Castle & Cooke from Dole Foods.

Kamehameha Schools
567 S. King St., 2^nd Floor
Honolulu, HI 96813

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Kirk Belsby is Vice-President of the Endowment for Kamehameha Schools (KS) and manages its investment portfolio. The portfolio includes allocations to equities, fixed income, venture capital, private equity, and real estate. With over 360,000 acres and $2 billion in real estate holdings, KS is the largest private land owner in Hawaii.

His responsibilities within the real estate portfolio include supervising the management of its existing operating properties, as well as the redevelopment of key assets such as the Royal Hawaiian Center in Waikiki, master planning the 52 acre Kaka'ako urban district, and furthering the development of the 2,200 acre Keauhou resort on the Big Island.

Kirk is also tasked with prudently investing the portion of the trust invested in public and private securities. His responsibilities include determining the proper allocation between asset classes, and to select top Wall Street money managers to provide KS with superior asset returns.

Past experience includes over 20 years in combined real estate and financial securities analysis. Immediately prior to his employment with Kamehameha Schools he served as Regional Managing Partner for Arthur Andersen’s real estate consulting practice. He also worked for a national developer as an asset manager and analyzed proposed development projects. Finally, Kirk was also a financial consultant with Shearson Lehman Brothers.

Kirk is a Board Member for Enterprise Honolulu and the Hawaii Science & Technology Council.

http://www.ksbe.edu/about/chiefs/vp_belsby.php

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May 9, 2009

Kamehameha trustee
extensions requested

Terms expiring; report cites program continuity

By Rick Daysog

Advertiser Staff Writer

A court-appointed master for the Kamehameha Schools is recommending a one-year extension for trustee Robert Kihune, whose term ends next month.

In a 117-page report filed with the state Probate Court last month, attorney David Fairbanks also recommended a one-year extension for trustee Diane Plotts and two-year extensions for board members Douglas Ing and Nainoa Thompson.

"The potential for loss of substantial institutional knowledge, wisdom, continuity, momentum and even stability is great, and the threats of an interruption in the present, established path of governance, a less-than-smooth transition ... and interruption of important, newly implemented programs are very real," Fairbanks wrote.

Kihune, a retired Navy vice admiral, will step down June 30 after having served on Kamehameha School's board since 2000.

A Probate Court-appointed trustee screening committee recently named three finalists to replace Kihune. They included state Department of Hawaiian Homes Lands Chairman Micah Kane, state Community Development Authority Executive Director Anthony Ching and former Kamehameha Schools executive and ex-DHHL Chairman Ray Soon.

Deputy Attorney General Hugh Jones, whose office serves as the legal guardian for the estate, had no comment, saying he has not yet completed his review of Fairbanks' recommendations.

A trust spokesman also had no comment but said the estate will file a response to Fairbanks' recommendations with the Probate Court shortly.

Kamehameha Schools, which was established by the 1883 will of Princess Bernice Pauahi Bishop, is a nonprofit charitable trust that educates Hawaiian children.

It is one of the nation's largest charities and is Hawai'i's largest private landowner, with more than 360,000 acres.

In addition to extending current trustees' terms, Fairbanks also recommended that future board members receive a 10-year term.

Currently, all five trustees serve five-year terms and are eligible for up to two terms. Thompson's term ends next year, Plotts' tenure ends in 2011 and Ing's term ends 2012.

Trustees earn about $90,000 a year.

Fairbanks said he was satisfied with the progress made by Kamehameha CEO Dee Jay Mailer and her management team but expressed concern about continuity within Kamehameha's boardroom in light of the recent financial challenges faced by the trust.

His report noted that the value of the trust's endowment dropped by 20.4 percent from $9.44 billion on June 30, 2008, to $7.36 billion on Dec. 31, 2008, as a result of the global financial downturn and the national economy.

(Catbird note: Not to mention the greed, corruption and mismanagement of the current Kamehameha Schools’ trustees and management who they now want to EXTEND a couple of years ... so they can lose another $2 or $3 billion???)

"The recent dramatic downturn in the economy, significant losses in investments, the decline in the real estate market with attendant reductions in revenues and lower values, and their potential adverse impact upon the trust's educational programs including outreach programs, make it critical that the transition to an essentially brand new board of trustees be as smooth as possible," he said.

http://www.honoluluadvertiser.com/article/20090509/NEWS01/905090325/1001 ~ ~ ~

January 10, 2009

Kamehameha Schools endowment declines by $1.7B

Meltdown in financial markets reduced value
by 18 percent, to $7.7B

BY RICK DAYSOG. Advertiser Staff Writer

The value of Kamehameha Schools' endowment plunged by more than $1.7 billion in four months due to the meltdown in the nation's financial markets.

The charitable trust said the value of its investments portfolio and real estate holdings fell 18 percent, to $7.7 billion, between June 30 and Oct. 31.

The declines reverse a stellar 2008 fiscal year when the trust's endowment increased by $367.9 million to $9.44 billion.

"While the overall diversification of our portfolio enabled us to weather the initial volatility of the 2008 equity markets, we are by no means immune to the effects of the dramatic fluctuations triggered by the U.S. and global financial challenges that unfolded in the last half of the year," said Kirk Belsby, Kamehameha Schools vice president for endowment.

Kamehameha Schools is hardly alone among the multibillion-dollar endowments affected by the turmoil in the financial markets.

Last month, Harvard University said its endowment dropped by 22 percent, or about $8 billion, over a four-month period while Yale University said the value of its investments dropped by $5.9 billion, or about 25 percent.

The State of Hawai'i Employees Retirement System saw the value of its investment portfolio drop by about $1 billion to about $9 billion since June.

"What began as an apparent cyclical downturn in the financial markets has become a world economic crisis with ramifications that reach far beyond Wall Street," Kamehameha Schools spokeswoman Ann Botticelli said.

Founded by the 1883 will of Princess Bernice Pauahi Bishop, the Kamehameha Schools is a tax-exempt charity that educates children of native Hawaiian ancestry. The trust is one of the nation's wealthiest charities and is the state's largest private landowner.

The investment downturn is not expected to have a severe impact on Kamehameha Schools' educational spending policy. That policy is based not on single-year returns, but on a five-year rolling average of the value of Kamehameha Schools' endowment.

For the fiscal year ending June 30, Kamehameha Schools said it spent $273 million on its educational programs, an increase of $23 million during the year-earlier period.

During the same period, the trust said it served more than 38,100 students, which represents an increase of 2,100 or 7.2 percent.

During the past five fiscal years, the estate said it has spent more than $1.1 billion on educational programs.

Kamehameha Schools endowment declines by $1.7B

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January 9, 2009

Kamehameha Schools endowment
down 18% to $7.7 billion

By Rick Daysog, Advertiser Staff Writer

Preliminary figures for the first four months of Kamehameha Schools' fiscal year 2009 indicate the trust's total endowment value is down by 18 percent to $7.7 billion.

Final audited numbers for the endowment's financial performance will not be available until December 2009.

The Honolulu Advertiser - 01/09/09

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NEW DISCOVERY (01-08-09): More undisclosed financial, professional, political and personal conflicts of interest between David C. Farmer, Kamehameha Schools, Bishop Museum, Diane Plotts, Kirk Belsby, Chaminade University, Jean Rolles, Judge Patrick Yim, Office of Hawaiian Affairs, Haunani Apoliona, Oswald Stender, Al Hee, Clayton Hee, The Nature Conservancy, Faye Kurren, Bank of Honolulu, Sukamto Sia, Bob Awana, Linda Lingle, Susan Todani, Ben Cayetano, John Waihee, Peter Apo, etc:

Subject: CV05-00030 - David C. Farmer vs. Harmon - Exhibit: "Honolulu awaits 'heritage area' status" - Honolulu Advertiser & Witness David Farmer

Thursday, January 8, 2009 7:53 AM

From: "bobby_n_harmon@yahoo.com" <bobby_n_harmon@yahoo.com>

To: "David Farmer" <farmerd001@hawaii.rr.com>, "Steven Guttman" <sguttman@kdubm.com>, "Carol K. Muranaka" <ustp.region15@usdoj.gov>, "Michael Mukasey" <AskDOJ@usdoj.gov>, "David A. Ezra" <theresa_lam@hid.uscourts.gov>, "Enforcement Division SEC" <enforcement@sec.gov>

Cc: "ACLU Hawaii" <office@acluhawaii.org>, "All Representatives" <reps@Capitol.hawaii.gov>, "All Senators" <sens@Capitol.hawaii.gov>, "Andrew Walden" <hfpeditor@email.com>, "Aon Insurance Managers" <mike_coulter@agl.aon.com>, "Arthur Rath" <imua@spamarrest.com>, "Barry M. Kurren" <richlyn_young@hid.uscourts.gov>, "Benjamin Kudo" <bkudo@imanakakudo.com>, "Bradley Tamm" <btamm@hawaii.rr.com>, "Carl Morton" <ethics@hawaiiethics.org>, "Charles Goodwin" <HONOLULU@FBI.GOV>, "Charles Hurd" <mcp@mediatehawaii.org>, "Dave Shapiro" <volcanicash@gmail.com>, "Dee Jay Mailer" <ksinfo@ksbe.edu>, "Dorothy Sellers" <hawaiiag@hawaii.gov>, "Executive Office for U.S. Trustees" <ustrustee.program@usdoj.gov>, "Hugh Jones" <hugh.r.jones@hawaii.gov>, "Insurance Division Fraud Branch" <insfraud@dcca.hawaii.gov>, "J C Shannon" <Hapa1234@aol.com>, "James B Nicholson" <jamesbnicholson@aol.com>, "James B. Farris" <Farrisj@adr.org>, "James Cribley" <jcribley@caselombardi.com>, "James Paul" <jpaul@pjpn.com>, "James Wriston" <jwriston@awlaw.com>, "Jeffrey Watanabe" <jwatanabe@wik.com>, "Jim Dooley" <jdooley@honoluluadvertiser.com>, "Jo Ann Uchida" <rico@dcca.hawaii.gov>, "Joe Moore" <news@khon2.com>, "John D. Finnegan" <info@chubb.com>, "John Goemans" <wip@kamuela.com>, "Judge Lloyd King" <hib@hib.uscourts.gov>, "Judith Neustadter" <Judy@tiki.net>, "Judson Witham" <jurisnot2@yahoo.com>, "Ken Conklin" <ken_conklin@yahoo.com>, "Kenneth Hipp" <khipp@marrhipp.com>, "Kevin S.C. Chang" <shari_afuso@hid.uscourts.gov>, "Lawrence Reifurth" <dcca@dcca.hawaii.gov>, "Linda Lingle" <governor.lingle@hawaii.gov>, "Lyn Flanigan Anzai" <lflanigan@hsba.org>, "Margery Bronster" <info@bchlaw.net>, "Marsh Affinity Group" <prosecure@marshpm.com>, "Michael N. Tanoue" <mtanoue@paclawgroup.com>, "Michelle Tucker" <michelle@sterlingandtucker.com>, "Nathan Aipa" <nathan@pitluck.com>, "Office of Inspector General Civil Rights Complaints" <inspector.general@usdoj.gov>, "Office of the U.S. Trustee District of Hawaii" <ustp.region15@usdoj.goV>, "Paul Alston" <palston@ahfi.com>, "Randall Roth" <rroth@hawaii.edu>, "Rick Daysog" <rdaysog@honoluluadvertiser.com>, "Robert Bruce Graham" <bgraham@awlaw.com>, "Robin Campaniano" <aigh001@aighawaii.com>, "Samuel P. King" <leslie_sai@hid.uscourts.gov>, "Susan Tius" <STius@rmhawaii.com>, "V K Durham" <vkdtdht@pionet.net>, "William K Slate" <Websitemail@adr.org>, "Jim Terrack" <tnthawaii@aol.com>, "Don Michak" <dmichak@journalinquirer.com>, "Rocco Sansone" <rocco.c.sansone@marsh.com>, "Ted Pettit" <tpettit@caselombardi.com>, "Mark Burch" <burch@hawaii.edu>, "Laura Thielen" <dlnr@hawaii.gov>, "Vaughn & Lynda Robinson" <ronpaulslcutah@yahoo.com>, "Peter Apo" <peterapocompany@gmail.com>, "Rebecca Christie" <rchristie4@bloomberg.net>, "Catbird" <the-catbird@hotmail.com>, "Mike Harmon" <mikeharmon@yahoo.com>, "Tom Flocco" <tom2@tomflocco.com>, "Real News" <thenewsman@ij.net>

Subject: http://the.honoluluadvertiser.com/article/2007/Jun/02/ln/FP706020340.html

Dear Mr. Farmer; Mr. Guttman; Ms. Muranaka; Attorney General Mukasey, and All Concerned:

This is to inform you that I am adding the subject news article as a new Exhibit, as it provides clear factual evidence that David C. Farmer had undisclosed financial, political and personal conflicts of interest with other parties who are directly connected with this case . You will find further factual evidence on-line at:

http://hawaii.gov/sfca/artreachwinter2001.pdf

http://www.kycbs.net/Bank-of-Honolulu.htm

http://www.kycbs.net/Bishop-Museum.htm

http://www.kycbs.net/First-Hawaiian-Bank.htm

http://www.kycbs.net/Hawaiian-Electric.htm

http://www.kycbs.net/CV05-00030-Witness-Farmer-David.htm

http://www.kycbs.net/CV05-00030-Witness-Akaka-Daniel.htm

http://www.kycbs.net/CV05-00030-Witness-Awana-Bob.htm

http://www.kycbs.net/CV05-00030-Witness-Bush-George.htm

http://www.kycbs.net/CV05-00030-Witness-Cayetano-Ben.htm

http://www.kycbs.net/CV05-00030-Witness-Hirano-Mazie.htm

http://www.kycbs.net/CV05-00030-Witness-Plotts-Diane.htm

http://www.kycbs.net/CV05-00030-Witness-Lingle-Linda.htm

http://www.kycbs.net/CV05-00030-Witness-Harris-Jeremy.htm

http://www.kycbs.net/CV05-00030-Witness-Inouye-Dan.htm

http://www.kycbs.net/CV05-00030-Witness-Rewald-Ron.htm

http://www.kycbs.net/CV05-00030-Witness-Sia-Sukamto.htm

http://www.kycbs.net/CV05-00030-Witness-Waihee-John.htm

Please advise me immediately if this Exhibit contains any "PROTECTED SUBJECT MATTER" which is prohibited by ORDER of Judge David A. Ezra.

Although I believe that Judge Ezra's Order constitutes a prior restraint of my FREEDOM OF SPEECH, if you and Judge Ezra would like to put an end to this unconstitutional approval process, then I would again suggest that we, and our respective insurance carriers (including Chubb Group, XL Insurance, and Island Insurance Co. ) make a good-faith effort to reach a global settlement of this case through confidential negotiation or mediation.

If you and your insurance carriers are NOT willing to attempt to negotiate or mediate a settlement, however, then I ask that, in light of all the new facts presented in these Exhibits and witness descriptions, you advise me whether or not you intend to OBJECT to my filing a Motion to reopen this case.

Your immediate reply is requested. If I do not receive a response from you within 15 days, I will assume that you have found no "prohibited subject matter" in these updated pages, and that you will NOT file any objections to my Motion to reopen this case.

Very truly yours,

Bobby N. Harmon, CPCU, ARM

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November 1, 2005

IMUA: Kamehameha Schools considers selling Hawaii lands under a new management plan.
Will the Islands rumble?

(TOP 20 WEALTHIEST LANDOWNERS)

From: Hawaii Business, By Radway, Scott Kirk Belsby, vice president for the Kamehameha Schools endowment, is not complaining when he explains what it takes for him to sell a piece of land, no matter how small.

"Any sale of a single square foot has to go through the trustees. I can rent the land, I can ground lease it all day long. But if I want to sell one square foot for one dollar that requires trustee approval," Belsby says.

Those aren't handcuffs; that's a value system, he says.

"That is the seriousness with which we take our land stewardship," Belsby says.

Kamehameha Schools towers over the rest ...

http://www.encyclopedia.com/doc/1G1-138998865.html

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May 17, 2006

Kamehameha Schools CEO earns $474,240

By Rick Daysog, Advertiser Staff Writer

Kamehameha Schools paid Chief Executive Officer Dee Jay Mailer $474,240 during its 2005 fiscal year but that was only enough to make her the trust's second highest paid executive.

In its annual tax filings with the Internal Revenue Service this week, Kamehameha Schools said its top paid executive was Endowment Vice President Kirk Belsby, who earned $722,413 for the year ended June 30, 2005.

The Kamehameha Schools — Hawai'i's largest private landowner — is a tax-exempt charity set up by the 1884 will of Princess Bernice Pauahi Bishop to educate children of native Hawaiian ancestry.

The trust operates schools for more than 6,000 preschool to high school students with the proceeds from its $6.1 billion endowment.

Belsby's 2005 compensation — which included $603,281 in base pay, $100,450 in expense and allowances and $18,682 in contributions to his employee benefit plan — was up 37.9 percent from the $523,856 he earned in fiscal year 2004.

Belsby's pay is less than half of the $1.7 million average compensation paid to the top executives at Hawai'i's largest publicly traded, for-profit corporations last year.

It also is comparable to the $500,000 to $700,000 range paid to the CEOs of Hawai'i's largest nonprofit healthcare companies such as The Queen's Health Systems, Hawaii Pacific Health and the Hawaii Medical Service Association.

Kekoa Paulson, Kamehameha Schools spokesman, said much of Belsby's compensation is incentive based and is determined by the performance of the trust's finances.

During its 2005 fiscal year, Kamehameha Schools generated $837.2 million in total revenue, or slightly less than the record $838.8 million in fiscal 2004.

According to Kamehameha's tax filings, Mailer's pay rose sharply from her 2004 compensation of $204,403. But the comparison is skewed by the fact that Mailer was named chief executive officer in the middle of the 2004 fiscal year.

Mailer's 2005 pay package is slightly less than the $493,586 in salary that the trust paid its former CEO Hamilton McCubbin in its 2003 fiscal year.

The estate's annual filing with the IRS also disclosed pay figures for other top executives and educators, including:

Michael Loo, the trust's finance and administrative vice president: $245,306

Legal Vice President Colleen Wong: $241,370

Kamehameha School's Maui campus headmaster Daniel Chamberlain: $233,652

Michael Chun, headmaster of the trust's Kapalama Heights campus: $222,928

Big Island headmaster Stanley Fortuna: $222,159

Former Community Relations Vice President Raynard Soon: $200,714.

Trustee Nainoa Thompson earned $107,000 while fellow board member Diane Plotts received $110,500.

Trustees Douglas Ing and Constance Lau were paid $99,000 each while Robert Kihune earned $94,500. Trustee pay is based in part on the number of hours worked.

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Kirk Belsby is expected to testify with regard to his business, professional, political and personal relationships with Dee Jay Mailer; Edwina Clarke; Hawaiian Electric Co.; Hamilton McCubbin; Sanford Murata; Benjamin Matsubara; Alika Thompson; Judge Kevin Chang; Pauahi Management Corp.; Castle & Cooke; Elaine Chao, Dole Foods; Arthur Andersen LLP; Kajima Corp.; Alexander & Baldwin; American Diversified Capital Corp; First Hawaiian Bank; Bank of Hawaii; Central Pacific Bank; American Savings Bank; Goldman Sachs; Guido Giacometti; Susan Tius; Robert Kihune; Gil Tam; Sandwich Isles Communications; Summit Communications; Colbert Matsumoto;Jeffrey Watanabe; Bob Lindsey; Peter Savio*; Mary Lou Woo*; Judith Neustadter Fuqua; Steve Case*; Jeffrey Case; Ed Case**; Pacific Southwest; Wally Chin; Rodney Park; Yukio Takemoto; Ronald Libkuman; Douglas Ing; Rocco Sansone; Marsh & McLennan; Biotech Research Center, LLC**; Dr. Leroy Hood**; Amgen** ; Immunex;** Applied Biosystems**; MacroGenics**; New Economy Strategies**; Michael Nauyokas; The Nature Conservancy; Faye Kurren; Stanley Hong; Sabrina Toma; Arthur Andersen; Alton Ohira; Peter Hanashiro; Alan Yee, Susan Todani, Jean Rolles, Peter Apo, David C. Farmer, and others to be named upon discovery.