Woo vs. Harmon - Witness Judge Kevin S.C. Chang

David C. Farmer, Successor-Trustee vs. Harmon

(Formerly Woo vs. Harmon & Nicholson vs. Harmon)

U.S. District Court For the District of Hawaii

—

DEFENDANT’S WITNESS

JUDGE KEVIN S.C. CHANG

Federal judge for the Ninth Circuit, District of Hawaii; former partner in the Honolulu law firm of Watanabe Ing & Kawashima; appointed by Governor John Waihee in 1993; judge in EQ2048 - Earl Anzai vs. Trustees of Kamehameha Schools/Bishop Estate; judge in CR. No. 99-0678 - State of Hawaii vs. Richard SH Wong, Mari Stone Wong, and Jeffrey R. Stone; judge in Civil No. 01-615-SPK-KSC - Hale O Kaula Church vs Maui Planning Commission (in which Arbitrator Judith Neustadter Fuqua was a Defendant).

United States District Court
300 Ala Moana Blvd.
Honolulu, HI 96850

Fax: 808-541-1181
Email: shari_afuso@hid.uscourts.gov

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PHOTO GALLERY

http://starbulletin.com/1999/05/06/news/story2.html

http://starbulletin.com/2000/11/03/news/story1.html

http://starbulletin.com/2000/11/04/news/story2.html

http://starbulletin.com/2006/03/03/editorial/special.html

http://starbulletin.com/2007/02/15/news/story04.html

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NEW DISCOVERY (09-07-08):

EARL I. ANZAI
Attorney General of Hawaii

DOROTHY D. SELLERS
HUGH R. JONES
Deputy Attorneys General
425 Queen Street
Honolulu, Hawaii 96813

Attorneys for the Beneficiaries

IN THE CIRCUIT COURT OF THE FIRST CIRCUIT

STATE OF HAWAII

In the Matter of the Estate

BERNICE P. BISHOP,

Deceased.

EQUITY NO. 2048 KSCC

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REPORT OF ATTORNEY GENERAL CONCERNING MAY 7, 1999 ORDER

The May 7, 1999 order regarding orders to show cause requires the former trustees immediately to resign offices and directorships in the trust’s subsidiary and affiliated organizations... P&C Insurance Company, Inc., is a captive insurance company, the sole stock holder which is Pauahi Holdings Inc.

The Attorney General respectfully invites the court’s attention to the annual report publicly filed on March 28, 2000 by P&C (Ex. 1). The annual report lists Henry H. Peters as a director. The Attorney General is unable to determine whether the listing is incorrect; or whether Peters remains a director in violation of court order. The Attorney General’s several inquiries of the trust concerning this matter remain unanswered despite the passage of three months (Ex. 2).

DATED: Honolulu, Hawaii, May 5, 2000

Respectfully submitted,

<s> DOROTHY SELLERS
Deputy Attorney General

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DECLARATION OF DOROTHY SELLERS

DOROTHY SELLERS hereby states:

1. I am a deputy attorney general, and I am familiar with the case records and files in Hawaii First Circuit Court Equity No. 2048 going back to approximately August 1997.

2. I have personal knowledge of the facts contained in this declaration and am competent to testify to them.

3. Exhibit 1 is a true and correct copy of the annual report of P&C Insurance Company for the year ending Dec. 31, 1999, filed in late March 2000.

4, Exhibit 2 is a true and correct letter of my February 15, 2000 letter to counsel for the trust asking for verification that Henry Peters had resigned from P&C and the effective date of the resignation. I have never received a response to that letter.

5. On March 13, 2000, deputy attorney general Hugh Jones wrote trustee Libkuman (with a copy to general counsel Colleen Wong) about a number of matters. The final two paragraphs of that letter are:

Finally, we also requested some time ago copies of Henry Peters’ letters of resignation from directorships and ex officio positions, and specifically from P&C Insurance Company. Although the resignation letters of the other trustees were filed with the Court, Peters’ were not.

Please respond to these requests before March 31, 2000. Thank you.

I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT.

DATED: Honolulu, Hawaii, May 5, 2000

www.kycbs.net/Doc-EQ2048-PC-Peters-5-5-0.pdf

www.kycbs.net/PC-Arms-Length-Guide-10-1-94.pdf

www.kycbs.net/Doc-EQ2048-Mediation-Order-3-9-0.pdf

www.kycbs.net/KSBE-INTERROGATORIES.htm

www.kycbs.net/RICO-In-Paradise.htm

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NEW DISCOVERY (08-04-08): UNDISCLOSED CONFLICTS-OF-INTEREST BETWEEN JUDGE KEVIN CHANG; JUDGE COLLEEN HIRAI; THE FORMER BISHOP ESTATE TRUSTEES (DEFENDANTS IN HARMON’S RICO LAWSUIT); THE COURT-APPOINTED MEDIATORS IN EQUITY 2048 (DAVID FAIRBANKS AND JAMES DUFFY); FEDERAL INSURANCE COMPANY; XL INSURANCE COMPANY; ATTORNEY GENERAL EARL ANZAI; DEPUTY ATTORNEY GENERAL HUGH JONES, STEVEN GUTTMAN, AND OTHERS:

August 11, 2000

State deal with
former trustees reported

The terms: Dickie Wong's attorney says the agreement resolves pending action against the ex-trustees

The significance: A settlement of the suit would avoid a costly trial scheduled next month

By Rick Daysog, Star-Bulletin

The attorney general`s office has agreed to settle its multimillion dollar lawsuit against the five former trustees of the Kamehameha Schools, according to a lawyer for former trustee Richard "Dickie" Wong.

Another person familiar with the settlement talks said, however, that while there is an agreement in principle it may be some time before it is completed.

In a sworn affidavit filed in the Hawaii Supreme Court yesterday, Wong's lawyer Eric Seitz said he has been informed that the attorney general`s office reached a "global settlement" on Aug. 4 with ex-board members Wong, Henry Peters, Gerard Jervis, Oswald Stender and Lokelani Lindsey that resolves the pending probate, tax and civil litigation against the former trustees.

The plan, which requires approval from the state Probate Court, represents a major milestone in the three-year controversy that has dogged the $6 billion charitable trust. If approved, the deal would avert a costly, one-year trial that is scheduled to begin Sept. 18. Details of the proposed deal remain under seal but Seitz, who represents Wong in the criminal actions brought by the state, said some of the attorney general`s civil claims against the former trustees will be covered by the estate`s $25 million insurance policy with Federal Insurance Co.

It is not clear whether the former trustees will be personally liable for any of the surcharges sought by the attorney general`s office. Seitz added that the insurance company will not cover the outstanding legal bills for the criminal proceedings against his client and Peters, who were indicted by an Oahu grand jury on theft charges. The criminal theft charges have been overturned by Circuit Judge Michael Town, but the state is appealing those decisions. Seitz, who is owed about $20,000 in legal fees for his work in Wong's criminal case, criticized the proposed settlement, saying it uses the insurance company's resources to pay for the civil cases at the expense of the criminal cases involving former trustees Wong and Peters. Until now, the insurance policy had been covering Wong's and Peters' criminal defense costs.

"It's not only unfair but it's an outrage, because it takes away ... the criminal protection that he's entitled to," Seitz said.

Seitz' affidavit was in response to a request by the attorney general's office for records relating to Federal Insurance's payments for Wong's legal costs, a subject of the state's surcharge suit. Seitz argued that state attorneys shouldn't be entitled to the insurance records since they have settled the surcharge suit.

Deputy Attorney General Hugh Jones had no comment on Seitz' affidavit, saying the mediation process is subject to a confidentiality order. Glenn Sato, a lawyer representing Wong in the Probate Court proceedings, also declined comment on Seitz' filing, citing the court's confidentiality order.

An attorney for Stender also had no response, while lawyers for Peters and Jervis could not be reached.

Michael Green, Lindsey's lawyer, took issue with Seitz' affidavit, calling it irresponsible given the sensitivity of the settlement talks.

"The discussions at this point are fragile at best," Green said. "For any lawyer, including Mr. Seitz, to say this case is settled is irresponsible."

A spokesman for the estate said there is no settlement at this time. He declined further comment.

In its lawsuit, the state is seeking multimillion dollar surcharges against the former trustees for allegedly taking excessive compensation, mismanaging the trust's educational programs and incurring more than $200 million in investment losses.

The former trustees have denied wrongdoing, saying the trust is well-run and financially stable.

According to Seitz, the global settlement was reached by all of the parties, including Federal Insurance, during an Aug. 4 closed-door conference with Probate Judge Kevin Chang. Seitz said the plan was placed on the record, making it enforceable.

But others familiar with the talks said that while there may be tentative agreement, there are outstanding issues.

They noted that the attorney general's office and lawyers for the former trustees continue to hold discussions with the court-appointed mediators, David Fairbanks and James Duffy.

Minutes to the Aug. 4 meeting in Chang`s chambers are under a court-ordered seal.

http://starbulletin.com/2000/08/11/news/story1.html

http://www.kycbs.net/ChubbGroup.htm

http://www.kycbs.net/Confessions.htm

http://www.kycbs.net/Broken-Trust-Book.htm

http://www.kycbs.net/JUSTICE.htm

http://www.kycbs.net/Lost-Generations.htm

http://www.kycbs.net/MarshBirds.htm

http://www.kycbs.net/RICO-BH.htm

http://www.kycbs.net/Whistler.htm

http://www.kycbs.net/XL.htm

http://www.kycbs.net/Claims-Branch-Chubb.htm

http://www.kycbs.net/Claims-Branch-Kamehameha.htm

http://www.kycbs.net/Claims-Branch-Kessner-Duca.htm

http://www.kycbs.net/Claims-Branch-Marsh-McLennan.htm

http://www.kycbs.net/Claims-Branch-P-C.htm

http://www.kycbs.net/Claims-Branch-XL.htm

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NEW DISCOVERY (07-24-08):

July 2, 2008

Trustee Message: Petition Filed
to Find Successor Trustee

Aloha mai kaakou,

The Board of Trustees of Kamehameha Schools has filed a Petition for Appointment of Successor Trustee, which starts the process of selecting a replacement for Trustee Robert Kihune, whose term expires in one year, on June 30, 2009. A hearing of the petition has been granted by the court for August 8, 2008.

As a Trustee, Admiral Kihune has consistently kept his focus on the mission of Kamehameha Schools, always holding Ke Ali'i Pauahi’s interests paramount, being adamant about educating Hawaiian children with need. From the day he stepped forward as an Interim Trustee until today, he has stood for effective governance, inspired leadership and a bias for action to move Kamehameha Schools’ mission forward. He has consistently supported programs to expand the educational reach of Kamehameha Schools and has taken the kuleana of land stewardship very seriously. His contributions have been enormous. As he embarks on his final year as Trustee, he does so with our deepest gratitude.

Under the Will of Ke Ali`i Bernice Pauahi Bishop, the Trustees were to be selected by a majority of the members of the Supreme Court of Hawai'i. However, in 1997 three of the five current Supreme Court Justices – Chief Justice Ronald Moon and Associate Justices Paula Nakayama and Steven Levinson – gave notice that they would not be exercising the power to appoint Trustees as granted by Pauahi’s Will.

The Justices maintained that position in 2006, when a replacement was selected for then-Trustee Constance Lau. If the Justices maintain this position in 2009, the upcoming vacancy cannot be filled as Pauahi intended. In that case, the Petition for Appointment of a Successor Trustee suggests that the court follow the selection procedure established in 1999 for the selection of the current Board of Trustees.

According to that process:

1. The Probate Court appoints a Screening Committee of seven persons who are knowledgeable about Kamehameha Schools and Pauahi’s legacy and vision and experienced in the management and operation of a large institution, educational or otherwise.

2. The Screening Committee will accept applications and nominations, and may solicit applicants who have not applied.

3. The Screening Committee will select and interview 6 semi-finalists.

4. The Screening Committee will select three finalists, whose names are published in the newspaper.

5. The Screening Committee will receive comment from the community, including the Trustees and the Attorney General, for 30 days, and submit a report detailing the input to the Court.

6. The final selection will be made by the Probate Court.

Our duty as Trustees in this matter is to file the Petition for Appointment of a Successor, and then continue to do our best to fulfill Pauahi’s vision and the mission of Kamehameha Schools while the selection process is underway.

I mua, Kamehameha!

Nainoa Thompson,
Chair, Board of Trustees

http://www.ksbe.edu/article.php?story=20080702094001824

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< < < FLASHBACK < < <

September 1, 2000

Interim trustees Constance Lau
and Robert Kihune are
among the candidates

By Rick Daysog, Star-Bulletin

A special court-appointed panel today nominated seven business and community leaders as finalists for the trusteeship of the Kamehameha Schools.

The Trustee Screening Committee selected attorney Douglas Ing, former Amfac/JMB Hawaii Inc. president; Chris Kanazawa, retired Adm. Robert Kihune; American Savings Bank chief operating officer Constance Lau; former Hemmeter Corp. executive Diane Plotts; Grace Pacific Corp. chairman Dwayne Steele, and Hawaiian navigator Nainoa Thompson.

Kihune and Lau currently are serving as interim trustees of the $6 billion charitable trust.

The selection committee filed its list of finalists with the state Probate Court this morning. The court will name the five permanent trustees from the list but not before a 30-day period during which the public will have the opportunity to comment.

The selection process marks a milestone in the 116-year history of the Kamehameha Schools, whose most recent past has been wracked by controversy and dissension.

Previously, trustees were picked by the state Supreme Court as spelled out in the will of the estate's founder, Princess Bernice Pauahi Bishop. But the turmoil prompted the high court to step away from the selection process in December 1997.

Critics have charged that politics tainted the Supreme Court's selection of previous trustees.

The screening committee said the nominees, who were picked from a field of more than 200 applicants, represent a deep sense of commitment and have the ability to ensure that Bishop's legacy continues.

The nominees -- screened for their business experience, community involvement and leadership experience -- represent a diverse cross-section of the local community. Ing is a Kamehameha Schools graduate who represented former trustee Oswald Stender in his successful suit to remove ex-board member Lokelani Lindsey. Thompson is well known as the navigator on the Hokulea voyages across the Pacific.

Plotts served as developer Christopher Hemmeter's top executive as he built several five-star hotels during the 1980s economic boom, while Kanazawa headed Amfac during the late 1990s as the company was phasing out its agricultural operations.

Lau and Kihune have served as interim trustees of the Kamehameha Schools since May 1997, replacing ousted trustees Oswald Stender, Henry Peters, Richard "Dickie" Wong, Lokelani Lindsey and Gerard Jervis. Steele is chairman of Grace Pacific, an asphalt paving company, and is an outside director of Pauahi Management Co., a for-profit unit of the Kamehameha Schools.

Under a court-revised plan, the annual pay for permanent trustees is capped at $97,000. The chairman will receive no more than $120,000 a year.

Screening committee members include Hawaiian educator Nona Beamer, business executive Kenneth Brown, attorney Melody MacKenzie, Kamehameha Schools alum Mike Rawlins, the estate's court-appointed master Colbert Matsumoto, Hawaii Community Foundation head Kelvin Taketa and Roy Benham, president of the Oahu region of the Kamehameha Alumni Association.

Bishop Estate archive

http://www.starbulletin.com/2000/09/01/news/story1.html

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NEW DISCOVERY (06-24-08):

Final Decree entered

Date: Tuesday, June 24, 2008 8:17 PM

From: "Steven Guttman" <sguttman@kdubm.com>

To: "Bobby Harmon" <bobby_n_harmon@yahoo.com>, "David Farmer" <farmerd001@hawaii.rr.com>, "Michael Mukasey" <AskDOJ@usdoj.gov>, "Kevin Chang" <sa@hid.uscourts.gov>, "Robert Faris" <hib@hib.uscourts.gov>, "Barry M. Kurren" <richlyn_young@hid.uscourts.gov>, "Carol K. Muranaka" <ustp.region15@usdoj.gov>, "J P Schmidt" <insurance@dcca.hawaii.gov>, "Janet Kamerman" <HONOLULU@FBI.GOV>, "Mark Bennett" <hawaiiag@hawaii.gov>, "Hugh Jones" <hugh.r.jones@hawaii.gov>, "Linda Lingle" <governor.lingle@hawaii.gov>

Cc:

"Mediation Center of The Pacific" <mcp@mediatehawaii.org>, "Sheryl Nicholson" <office@acluhawaii.org>, "Robert Bruce Graham" <bgraham@awlaw.com>, "James Wriston" <jwriston@awlaw.com>, "Andrew Winer" <winer@pacificlaw.com>, "James Cribley" <jcribley@caselombardi.com>, "Lawrence Goya" <hawaiiag@hawaii.gov>, "Pension Benefit Guaranty Association" <participant.pro@pbgc.gov>, "James B Nicholson" <jamesbnicholson@aol.com>, "Executive Office for U.S. Trustees" <ustrustee.program@usdoj.gov>, "Office of Inspector General US Dept of Justice" <oig.hotline@usdoj.gov>, "George Will" <georgewill@washpost.com>, "Haunani Apoliona" <info@oha.org>, "Leroy Colombe" <lcolombe@ckdbw.com>, "Scott Helman" <shelman@globe.com>, "Bob Nichols" <bob.bobnichols@gmail.com>, "Laura Thielen" <dlnr@hawaii.gov>, "Barry Taniguchi" <communications@hcf-hawaii.org>, "Paul Achitoff" <honoluluoffice@earthjustice.org>, "Laurie Bennett" <info@muckety.com>, "Dave Shapiro" <volcanicash@gmail.com>, "Gail Kim-Moe" <Gkim.moe@gmail.com>, "Marshall Chriswell" <mc@whistleblowers.org>, "Greg Palast" <palast@gregpalast.com>, "Dee Jay Mailer" <ksinfo@ksbe.edu>, "Laser Haas" <laserhaas@msn.com>, "Michael Moore" <mike@michaelmoore.com>, "Texas Observer" <editors@texasobserver.org>, "Brian W. Bisignani" <bbisignani@postschell.com>, "Aon Insurance Managers" <mike_coulter@agl.aon.com>, "William Burgess" <hwburgess@hawaii.rr.com>, "Brian E. Schatz" <teamschatz@gmail.com>, "Patricia Case" <pattycase@aol.com>, "Cheryl Nakamura" <CNakamura@rmhawaii.com>, "Bill Yuen" <billyuen@cymlaw.com>, "Randall W. Wulff" <rwulff@wqsadr.com>, "Karen Spiller" <karen.spiller@baesystems.com>, "Andrew Killgore" <akillgore@wrmea.com>, "Patrick Leahy" <senator_leahy@leahy.senate.gov>, "Pamela A. McCullough" <HONOLULU@FBI.GOV>, "James Duke Aiona" <ltgov@hawaii.gov>, "Ken Conklin" <ken_conklin@yahoo.com>, "William H. Donaldson" <enforcement@sec.gov>, "Ian Lind" <diary@ilind.net>, "Jim Terrack" <tnthawaii@aol.com>, "Andrew Walden" <hfpeditor@email.com>, "All Senators" <sens@Capitol.hawaii.gov>, "All Representatives" <reps@Capitol.hawaii.gov>, "Thomas Fitton" <info@judicialwatch.org>, "Stew Webb" <stewwebb@stewwebb.com>, "Judson Witham" <jurisnot@yahoo.com>, "J C Shannon" <Hapa1234@aol.com>, "Jeff Biener" <jeffandmary@ozarkopathy.org>, "V K Durham" <vkdtdht@pionet.net>, "Richard Grove" <Richard@8thEstate.com>, "Bradley Tamm" <btamm@hawaii.rr.com>, "Susan Tius" <STius@rmhawaii.com>, "Paul Alston" <palston@ahfi.com>, "John Goemans" <wip@kamuela.com>, "William K Slate" <Websitemail@adr.org>, "Lissa Andrews" <landrews@rmhawaii.com>, "John D. Finnegan" <info@chubb.com>, "Terry Mullen" <tmullen@johnmullen.com>, "Margery Bronster" <info@bchlaw.net>, "Michael N. Tanoue" <mtanoue@paclawgroup.com>, "Neil Ambercrombie" <Neil.Abercrombie@mail.house.gov>, "Lyn Flanigan Anzai" <lflanigan@hsba.org>, "