U S Dept of Justice, David C. Farmer, Trustee vs. Harmon

NEW DISCOVERY (11-24-08): New Exhibit: “EQ 2048 - Deposition of Lokelani Lindsey taken on November 4 & 9, 1999". This document provides clear evidence that J. Douglas Ing had multiple conflicts-of-interest in this case and, since he was not a named Defendant in my RICO lawsuit against the former Trustees, he was not a legitimate signatory to the Settlement Agreement: Furthermore, since the Settlement Agreement was NOT SIGNED by any of the five Trustees actually named as Defendants, the Settlement Agreement was not legal or valid. (See Exhibit A)

http://www.kycbs.net/Lindsey-docs-Vol-1-p1-4.pdf

http://www.kycbs.net/Lindsey-docs-Vol-1.pdf

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NEW DISCOVERY (07-23-08): Undisclosed conflicts of interests with Ronald Libkuman, Sidney Ayabe, Paul Alston, Diane Hastert, Keith Hunter, Charles Hurd, Susan Ichinose, David Farmer, Kevin Chee, Dan Case, Steve Case, Jeffrey Case, Aon, Suzanne Case, Judith Neustadter Fuqua, Judge Ronald Moon, Judge Patrick Yim, Colbert Matsumoto, and others:

DISPUTE PREVENTION & RESOLUTION

ROY HUGHES

Mr. Hughes was born on November 11, 1947 in Honolulu and attended Punahou School, graduating in 1966. He thereafter attended Ripon College, graduating in 1970, and Marquette University Law School, graduating in 1976.

Mr. Hughes joined Libkuman, Ventura, Moon & Ayabe in 1976, becoming a partner when Mr. Moon left to join the judiciary and the firm was renamed Libkuman Ventura Ayabe & Hughes. Mr. Hughes left the firm in 1987 and formed his own practice. The firm is presently known as Hughes & Taosaka.

The career focus of Mr. Hughes is insurance defense, the defense of insurance companies and their policyholders in litigation matters, including mediation, arbitration, trials and appeals. Mr. Hughes has defended automobile, premises, product and sports injury claims, insurance coverage matters, including the drafting of exclusionary endorsements, complex construction defect claims, real estate and legal errors and omissions claims.

Mr. Hughes participated in the briefing and arguments in the following reported Hawaii cases: Doherty v Hartford Insurance, 58 Haw. 570 (1978), Brown v Clark Equipment, 62 Haw. 530 (1980), King v Ilikai Properties, 2 Haw. App. 359 (1981), Peters v Peters, 63 Haw. 653 (1981), Socal v Hawaiian Insurance & Guranty Co., 65 Haw. 521 (1982), Lim v Harvis Construction Co., 65 Haw. 71 (1982), Kaneko v Hilo Coast Processing, 65 Haw 447 (1982), Alt v Krueger, 4 Haw. App. 201 (1983), Sturla v Firemans Fund Insurance Co., 67 Haw. 203 (1984), Rana v Bishop Insurance Co., 6 Haw. App. 1 (1985), Commerce & Industry Ins. Co. v Bank of Hawaii, 73 Haw. (1992), Pacific International Services Corp. v Hurip, 76 Haw. 209 (1994), Dunlea v Dappen, 83 Haw. 28 (1996), Island Insurance Co. v Johnny’s Plumbing, 86 Haw. 363 (1997), Tradewind Insurance Co. v Bayudan, 87 Haw. App. 379 (1998), and Island Insurance Co. v Dairy Road Partners, 92 Haw. 398 (2000).

In addition to his career focus in insurance defense matters, Mr. Hughes is active in mediations, serving as a community volunteer mediator with the Mediation Center of the Pacific and, commercially, with Dispute Prevention & Resolution. Mr. Hughes is also a member of the board of directors for the Hawaii Youth Opera Chorus and is active in the Parent Teacher Organization at the Mid-Pacific Institute.

PANEL OF NEUTRALS

Peter Adler, Ph.D
Paul Alston, Esq.
Honorable Riki May Amano(Ret.)
Thomas Angelo, Esq.
Paul Aoki
Sidney Ayabe, Esq.
Daniel Bent, Esq.
James Bidwell, Esq.
Barbara Bishop C. Med. RFM Acc.Med.
John Candon, CPA, ASA
Ellen Godbey Carson, Esq.
Louis L.C. Chang, Esq.
Kevin Chee, Esq.
Wesley H. H. Ching, Esq.
Zela G. Claiborne
Gerald Clay, Esq.
Honorable Victor Cox
Charles Crumpton, Esq.
William C. Darrah, Esq.
Nicholas DeWitt, Esq.
Richard J. Diehl, Attorney at Law
Joel Edelman, Esq.
J.W. Ellsworth, Esq.
Kale Feldman, Esq.
David Franzel, Esq.
Michael Freed, Esq.
Michael Gibson, Esq.
Joseph H. Goldcamp III, Esq./CPA
Jeffrey Griswold, Esq.
John A. Gromala, Esq.
Chief Justice Richard P. Guy
Geoff Hamilton
Diane Hastert, Esq.
The Honorable Walter Heen (Ret.)
Harvey Henderson, Esq.
Jerry M. Hiatt, Esq.
James Hoenig, Esq.,Ph.D
Roy Hughes, Esq.
Keith W. Hunter, CEO of DPR
Charles H. Hurd, Esq.
Susan Ichinose, Esq.
Lance Inouye, Esq.
John Jubinsky, Esq.
Honorable Thomas Kaulukukui, Jr.
Charles T. Kleintop, Esq.
John Komeiji, Esq.
Kenneth Kupchak, Esq.
James Lawhn, Esq.
Alexandra Leichter
Michael Leineweber, AIA
Rosalyn Loomis, Esq.
David M. Louie, Esq.
Colin L. Love, Esq.
Michael Marr, Esq.
Honorable E. John McConnell
Honorable Douglas McNish (Ret.)
Hnorable Wayne C. Metcalf III
Honorable Marie Milks (Ret.)
Ann Misura, Esq.
Thomas J. Mitrano, Esq.
G. Richard Morry, Esq.
Honorable Gail C. Nakatani
Michael Nauyokas, Esq.
Philip Nerney, Esq.
Patricia Kim Park, Esq.
James Paul, Esq.
Jeff Portnoy, Esq.
Justice Mario R. Ramil (Retired)
James Reinhardt, AIA, CSI
Craig H. Robinson, Ph.D.
Frank Rothschild, Esq.
Paul Schraff, Esq.
Michael B. Shane, Esq.
Craig Shikuma, Esq.
Honorable Sandra Arlene Simms
Yaroslav Sochynsky, Esq.
Michael Tom, Esq.
The Honorable Diana L. Warrington (Ret.)
Andrew Winer, Esq.
Honorable Leonard S. Wolf (Ret.)
Robert K. Wrede, Esq.
Randall Wulff, Esq.
Magistrate Judge Francis Yamashita (Retired)
Honorable Patrick K.S.L. Yim
Gary M. Yokoyama, Esq.

http://www.dprhawaii.com/d.aspx?nid=164

http://www.dprhawaii.com/services.aspx

http://www.dprhawaii.com/svc_mediation.aspx

http://www.dprhawaii.com/rules_mediation.aspx

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Reference: Harmon’s letter dated November 24, 1997, to Kamehameha Schools’ Master, Colbert Matsumoto, which detailed corruption within the Estate. This information was also furnished to the office of then-Attorney General Margery Bronster as related to her investigation of wrongdoing by the then-Trustees of Kamehameha Schools, and my depositions as a named Witness in EQ2048.

The fact that Colbert Matsumoto, Roy Hughes, Michael Tanoue, and others were aware of my testimony and the physical evidence that I had already provided to the Attorney General’s office, the IRS, the FBI, Insurance Commissioners, etc., yet continued to represent me and participate in the Settlement negotiations on my RICO lawsuit against these same trustees, and their replacements, is clear evidence of undisclosed conflicts of interests, destruction of evidence, and obstruction of justice in not only the instant case, but also in EQ2048, the Milton Holt case, etc.

The suppression of this “confidential” information may also have played a part in a conspiracy to oust then-Attorney General Margery Bronster, and replace her with insider Earl Anzai, who was also aware of the circumstances of my RICO lawsuit because of the involvement of his wife, former Kamehameha Schools in-house attorney, Lyn Anzai, for obvious reasons.

The later, self-serving arbitration process, using a hand-picked, conflicted and biased arbitrator, Judith Neustadter Fuqua, furthered the efforts to cover-up the wrong-doing at Bishop Estate and their many co-conspirators, including attorneys, contractors, suppliers, judges, politicians, etc.

The improper designation by the arbitrator of factual evidence that was already in the public domain, and had already been furnished to the U.S. Attorney General’s office, the Hawaii Attorney General’s office, the FBI, the SEC, the Insurance Commissioner’s of California and Hawaii, as “PROTECTED SUBJECT MATTER”, is further evidence of conspiracy and cover-up of major frauds and criminal activities involving many prominent politicians, and government regulators – including Insurance Commissioners, the Department of Commerce & Consumer Protection, the SEC, the IRS, etc.

The FINAL JUDGMENT, the extraordinarily high fines for publishing the so-called “Protected Subject Matter”, the denial of filing further Motions, etc., were all an integral part of the cover-up and obstruction of justice in these cases, and a conspiracy designed to allow the continuation of on-going racketeering activities.

The shut-down of the website, “The Catbird Seat” by the United States Department of Justice, no less, by the Order of clearly-conflicted Judge David A. Ezra, was clearly another act to destroy evidence and obstruct justice. However, this action was an even greater violation of Harmon’s constitutional rights guaranteed under the First Amendment:

Amendment I

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

www.kycbs.net/Freedom-To-Sing.htm

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The following is a copy of one of the letters which allegedly contained “Protected Subject Matter” and was “destroyed” when “The Catbird Seat” website was “shut-down” by the United States Department of Justice, Alberto Gonzales, Attorney General, by Order of Judge David A. Ezra:

November 24, 1997

HAND DELIVERED

Colbert M. Matsumoto, Esq.
Master, Bishop Estate
Amfac Tower, Suite 2000
700 Bishop Street
Honolulu, Hawaii 96813

RE: Kamehameha Schools Bishop Estate (KSBE); Pauahi Holdings Corporation (PHC); P&C Insurance Company, Inc. (P&C)

Dear Mr. Matsumoto:

This is to provide information regarding what may be conflicts of interests, breach of fiduciary duties and other wrongful acts by trustees, officers, directors, managers and other employees of the referenced entities.

I was employed by Kamehameha Schools Bishop Estate (KSBE) as their Risk/Insurance and Safety Manager from November, 1988. I was president of P&C Insurance Company, Inc. (P&C), a for-profit subsidiary of Pauahi Holdings Corporation (PHC) from October, 1994. I was terminated from my position at KSBE by Nathan Aipa on November 20, 1996; and from my position at P&C by Henry H. Peters on the same date.

My responsibilities at KSBE included arranging insurance and bonds for the estate and its subsidiaries, and providing oversight for claims settlements which were handled by the insurance carriers or independent adjusters. Lines of coverage included trustee bonds; bid and performance bonds; crime insurance, including employee dishonesty; directors and officers liability; fiduciary liability; workers compensation; and other property and casualty coverages. Safety was another of my primary responsibilities.

My belief is that the main reason for both terminations was the fact that I would not follow the directives of Henry Peters, Nathan Aipa, Louanne Kam and others to carry out what I believed were illegal or wrongful acts, including tax fraud and the breach of fiduciary duties.

When I was hired by KSBE, I reported to Gil Tam, who was at that time the Director of Personnel, and later became the Administration Group Director. While in this department, I was interviewed by the masters who requested information on the insurance programs including summaries of insurance policies, claims, etc. After I was transferred to the Legal Group, I no longer was given the opportunity to meet personally with the masters. Instead, Nathan Aipa would ask a paralegal or a legal secretary to obtain insurance summaries or other documents requested by the master. Likewise, I never had the opportunity to talk with the IRS auditors that were in the KSBE offices for several months in 1996. I considered this to be the result of Mr. Aipa’s desire to control the disclosure of information that might raise questions of improprieties on the part of the trustees and others.

The following are examples of breaches of fiduciary duties; questionable tax returns; intentional violation of federal and state statutes; discrimination and other wrongful acts:

1. There was a failure to disclose conflicts of interest and other financial information in federal tax returns as regards personal investments by certain trustees, executives, managers and employees in related for-profit companies controlled by KSBE.

2. IRS rules regarding the maintaining of “arms-length” relationships between a tax-exempt charitable organization and its for-profit subsidiaries were being breached. For example, at the direction of Henry Peters, Nathan Aipa, Louanne Kam, Eric Martinson, and others, KSBE paid insurance premium charges, legal fees and claims costs that should have been paid by for-profit subsidiaries (e.g. Kukui, Inc., Sino Finance, Unison Pacific, SoCal, AFCO, Paradise Petroleum, etc.), or by individual trustees, officers, directors or employees.

3. Services were being provided by KSBE employees, including myself, to P&C and other for-profit entities at no cost to the subsidiaries. In effect, KSBE is subsidizing these for-profit entities, which results in larger profits for the subsidiaries (and possibly larger commissions for the Trustees).

4. Henry Peters, Nathan Aipa and Louanne Kam were attempting to control the operations of P&C, including claims. This included directing the payment of “excess benefits” to independent contractors for non-bid or non-existent contracts. For example, P&C contracted with M&M Insurance Management Services, Inc. (M&M IMS), a subsidiary of Marsh & McLennan, Inc., for captive management services. This contract was on a time and expense basis, with a cost estimate of around $60,000. Yet the broker, Marsh & McLennan, Inc., was billing P&C an additional flat $200,000 annual fee. There was no contract for these services, and no satisfactory explanation was ever given for the charges. One belated explanation given was that this fee included safety and loss control services and “brokerage” services. However, P&C had paid M&M Protection Services, Inc. (another related company) under a separate “time and expense” contract for the safety services, and M&M had received commissions from the reinsurance carrier for their “brokerage” services. This constituted duplicate billing and well as over-billing for these services. Despite my objections as president of P&C, Peters, Aipa and Kam were adamant that I continue to pay these unexplained overcharges by M&M. In addition to these overcharges, I obtained property insurance proposals from another broker, Hobbs Group, which greatly improved coverages over M&M’s program and reduced the costs by over $600,000 a year. Nathan Aipa and Louanne Kam desperately attempted to prevent Hobbs Group from obtaining this account and to keep M&M on as Broker of Record, even at the risk of losing this program and its savings to the estate.

5. Insurance premiums and loss costs were being improperly allocated to lessees and tenants of KSBE properties. Many of the insurance policies for KSBE and its subsidiaries combine coverages for all entities under the same “blanket” policies. These insurance premiums, as well as the claims costs which were paid under self-insured retentions and deductibles, were allocated to the Kamehameha Schools, to Bishop Estate, and to covered subsidiaries. These charges, in turn, were further allocated to specific commercial projects, such as Royal Hawaiian Shopping Center, Windward Mall, Keauhou Shopping Village, Bishop Commerce Center (Georgia), Desert Springs Marketplace (California), etc., in accordance with procedures set forth in KSBE’s Policies & Procedures Manual and under P&C’s operating guidelines. Costs which were allocated to the commercial projects were nearly 100% recovered from the lessees and tenants through their monthly maintenance fees. Due to directives of Nathan Aipa, Louann Kam, Eric Martinson and others, these insurance costs were being improperly allocated, resulting in unfair charges to the tenants and lessees of these projects. The “overcharges” being made by M&M would also be included in these insurance costs that were passed through to tenants and lessees.

6. A portion of these improperly allocated insurance costs were also paid from the millions of dollars of Federal grant funds, including grants for the school’s ROTC program. On KSBE’s tax returns, Form 990, the estate states that it does not discriminate on the basis of race, while it is well known that in order to apply for admission you must complete a questionnaire which inquires of the applicant’s racial background.

7. Several of P&C’s claims were being directed by Louanne Kam or other KSBE in-house attorneys. An example was the Larry Ching flood damage claim. Kam, in conjunction with Aipa, wanted to hire an outside attorney and an expert to handle this claim. In keeping with P&C’s “arms-length” guidelines and its Operations Manual, only P&C’s contracted independent adjuster, John Mullen & Co., was authorized to hire attorneys and experts. Furthermore, this involvement by Aipa and Kam was, according to Kam, at the direction of Trustee Richard Wong who wanted to see what we could do to “settle this claim”, which had previously been denied by Mullen based on their findings that this was “an act of God”.

8. Annual financial statements for KSBE and P&C, which were prepared by Coopers & Lybrand (C&L), failed to disclose large claims, and to show adequate financial reserves for these claims (e.g., the McKenzie and Kona Enterprises, claims). I had several discussions with the auditors from C&L during which I expressed my concerns regarding the failure to disclose this information, and on November 20, 1996, I documented some of the recent discussions in a letter to C&L, with a copy to the State Insurance Commissioner. To my knowledge no action was taken by either C&L or the Insurance Commissioner.

9. It was reported that KSBE guaranteed several large bank loans (including loans from Bank of Hawaii) to “insider partners” in several investments.

10. It was reported that an “insurance policy” was issued to Robert Rubin to protect his financial interests in Goldman Sachs while he is serving as U.S. Treasury Secretary. Even though insurance contracts and surety bonds were my area of responsibility, I was never informed of this arrangement and, to my knowledge, no actuarial studies were made, no reinsurance was obtained, and no reserves were established to cover this substantial financial guarantee. (This arrangement would also appear to constitute a conflict of interest situation between the federal government, Robert Rubin, Goldman Sachs, and the wealthiest tax-exempt educational charity in the United States.)

11. There was coercion of employees, by means of threats of discipline or termination, to violate laws or to “look the other way” while superiors engaged in illegal or unethical acts, such as: the altering and/or falsifying of staff reports and contracts; directing notaries public to notarize documents without witnessing the signatures, or the signatories personally signing the notary logs; collusion with independent contractors to conceal and cover-up wrongful acts; discriminatory practices in hiring; and misuse of the “attorney-client privilege” to prevent the disclosure of these acts.

12. In my capacity as president of P&C, I refused to sign the annual financial statements prepared by Coopers & Lybrand for the fiscal period July 1, 1995 to June 30, 1996. The basic reasons for my refusal were the attempts by Henry Peters, Nathan Aipa and Louann Kam to direct all areas of P&C’s operations and investments, including the improper awarding of insurance contracts and settlement of claims, and the failure to set proper loss reserves. I discussed these irregularities with Cary Okawa and Dennis Tsuhako of Coopers & Lybrand on October 18, 1996, and followed-up with a letter dated November 20, 1996, in which I enclosed documents that provided evidence of these wrongful acts. A copy of this letter was sent to the Hawaii Insurance Commissioner.

13. There were intentional violations of the Environmental Protection Act (EPA) and other environmental regulations, with various attorneys in the Legal Group actively participating in discussions in order to keep the actions of trustees confidential under the “attorney-client privilege” doctrine. The refusal to act promptly to remediate known environmental problems endangered public safety. Two health teachers complained for months that they felt that there was asbestos in their classrooms, and they were assured that there was not. Eventually, the teachers sent samples of the ceiling tile to a testing lab, and asbestos was indeed found in the ceiling materials. The materials were eventually replaced, but the two teachers were labeled as “chronic complainers” and “trouble-makers”. Over 200 known sites on KSBE properties were identified in a “confidential” survey about two years ago. I was not privileged to see the results of the survey. To my knowledge, little or nothing was done to remediate any of these sites. There was known environmental impairment at the Nationwide Industries’ chemical plant in Pandora, Ohio, which the estate did nothing about for the several years it owned Nationwide (the name was later changed to Snap Products, Inc.). When the company was sold, KSBE retained the liability for clean-up of the site. To my knowledge, there was no clean-up during the time I was employed by KSBE. The one site that environmental clean-up was attempted was the Waterpark Tower site. This project was delayed for months, while tenants and neighbors were exposed to the unknown effects of wind-blown and water- borne hazardous chemicals. Even then, the remedial work was questionable, performed by an uninsured, non-licensed contractor, with hazardous materials being transported from the site by an improperly insured (for environmental liability) trucker.

14. The trustees knowingly disregarded regulations under the Americans with Disabilities Act (ADA). Colleen Wong informed the committee formed to handle the ADA that the schools were exempt from the regulations because it was “a religious institution”. This was despite an outside legal firm’s prior opinion that KSBE indeed fell under the regulations. A multi-million dollar class action suit filed against the estate and its subsidiaries indeed proved the legal department again to be wrong in its advice. Also the estate failed to make reasonable accommodations for persons with disabilities. An example is Marcia Diver, who became disabled on the job from bilateral carpal tunnel syndrome from heavy use of the computer. After having an operation, she was brought back to a job which required even heavier use of the computer. Consequently, her disability worsened. KSBE’s claim committee attempted to bring her back to work in a lighter duty position, but this proposal was successfully defeated by Colleen Wong and Carol Koza from the Personnel Department.

15. Insurance claims were not being reported by the Legal Group (e.g. Kona Enterprises, McKenzie Methane), and were being mismanaged by Aipa, Kam and others when they were reported. This resulted in hundreds of thousands of dollars in legal costs and settlements lost by the estate for failure to comply with the terms of the insurance contracts.

16. Contracts were not being put out for bid proposals in accordance with the trustees’ policies and procedures. For example, the Waterpark Towers environmental remediation contract was supposedly put out for bid. However, it appears that there were no bid specifications and no bid bonds were required for this project. (A consultant, Ed Tabangay, told me that he waived the bond requirements.) One of the bidders told me that there were no specifications, and that the bid was basically “done over the phone”. The low “bidder” was Stay & Sons, which was unable to furnish evidence of proper insurance for the contract. It also appeared that the company was not a licensed contractor, and the remediation process apparently had not been proven to work on this type of chemical (PCB). When the initial on-site remediation treatment was unsuccessful, a change order was issued which approximately doubled the original bid. To top it off, Trustee Lokelani Lindsey’s son just happened to be a key employee for Stay & Sons, which has all the appearances of a conflict-of-interest.

17. Racial discrimination was evident, obviously in the admissions policy for the schools (reportedly the last racially segregated school in the United States), but also in hiring practices. I was informed by -------------- that her department had advertised for a job opening, and that from a number of applicants they had selected the most qualified individual (who happened to be from the mainland) and had made an offer to him. According to -------- in a confidential phone conversation with me, she was called in to the office of her superior, Rodney Park, and was told that Henry Peters wanted her to hire one of the less qualified applicants simply because she was a Kamehameha graduate. She was also the wife of a supervisor at the schools.

Religious discrimination was also evident, and it took a long, expensive lawsuit before the estate was forced to hire other than protestant teachers.

Some of these situations I discussed with persons within the organization or connected with the organization. I reported my concerns regarding the Waterpark Tower situation (among others); co-investments of trustees and others in projects controlled by KSBE; conflict of interest situations; non-bid contracts, and other issues with the internal auditor, Dennis Fern, and his assistant Andrea Oshiro. I reported the pressures being put on me by Nathan Aipa and Louanne Kam to commit illegal acts and to breach my fiduciary duties, with Sandie Wicklein, Director of Personnel, and Pat Chalfin. I had many discussions with Karen Wilkenson, who was responsible for compiling KSBE’s Policies and Procedures manual, concerning the Legal Group’s “ostrich” approach to compliance with environmental protection laws. I discussed the “arms-length” and conflict of interest issues with Gil Ishikawa and Myron Mitsuyasu and with representatives from Coopers & Lybrand. I discussed the Legal Group’s improper interference and improper handling of claims with several claims supervisors and adjusters at John Mullen & Co., notably Robert Kuroda, Gary Gowdy and Neal Seamon. I reported my concerns regarding the excessive charges and improper conduct of M&M to the Insurance Commissioner.

Persons having direct knowledge or information of these acts I have described are believed to include:

KAMEHAMEHA SCHOOLS / BISHOP ESTATE:

Henry Peters, Trustee

Richard S.H. Wong, Trustee

Oswald Stender, Trustee

Lokelani Lindsey, Trustee

Gerard Jervis, Trustee

Matsuo Takabuki, (former) Trustee and current consultant

William Richardson, (former) Trustee and current consultant

Myron Thompson, (former) Trustee (deceased)

Rodney Park, Director of Administration Group

Wally Chin, Controller

Yukio Takemoto, Budget Director

Leeann Crabbe, Budget Mgr.

Gilbert Ishikawa, Tax Manager

Myron Mitsuyasu, Asst. Tax Manager

Dennis Fern, (former) Internal Auditor

Andrea Oshiro, (former) Internal Audit Dept.

Ramona Hinck, Accounting Mgr.

Doyal Davis, (former) Budget Mgr.

Maryanne Inouye

Bruce Nakaoka, Real Estate Investments Department Manager

Eric Martinson, Financial Assets Manager

Aaron Au, Financial Assets Division

Daniel Jones, Financial Assets Division

Nathan Aipa, General Counsel & Director, Legal Group

Linda Jacobs, Legal Assistant

Louanne Kam, Director, Litigation and Risk Management Division

Gilbert Tam, (former) Director, Administration Group

Guido Giacommetti, (former) Director, Asset Management Group

Mitch Gilbert, (former) Financial Assets Manager

Sydney Keliipuleole, Asset Management Div.

Charles Maeda, Information Systems Div.

Neil Hannahs, Asset Management Group

Michael Chun, Pres., Kamehameha Schools

Ed Tabangay, (former) Engineering Dept

Marcia Diver, Information Services Division

Emalia Keohokalole, Secretary

Colleen Wong, Esq.

Phil Chang, Esq.

Lyn Anzai, Esq.

Allan Yee, Esq.

Sam Hata, Director of Administration

Allen Young, Engineering Dept.

Sandie Wicklein, Director of Personnel

Pat Chalfin, (former) Personnel Dept.

David Dunigan, Litigation & Risk Management Div.

Julie Kawakami, Litigation & Risk Management Div.

Kim Kanalaupuni, Litigation & Risk Management Div.

Daniel Pires, Documentary Dept.

Leslie Yamashita, Notary Public

Werylend Tomczyk, Notary Public

Luana Sala, Notary Public

Lori Loo, Notary Public

William Rosehill (former employee)

PRICE WATERHOUSE:

Mark McConaghy

P&C INSURANCE COMPANY, INC:

Henry H. Peters, Chairman, Board of Directors

Gilbert Tam, Director

William S. Richardson, Director & Secretary/Treasurer

Peter J. Lowe, Vice-President

Rocco Sansone, Marsh & McLennan, Inc., Broker

Nathan T. K. Aipa, Asst. Sec./Asst. Treasurer

PAUAHI HOLDINGS CORPORATION:

Richard Wong, President

Glenn Hara, Treasurer

Henry Peters, Chairman, Board of Directors

ROYAL HAWAIIAN SHOPPING CENTER, INC:

Richard Wong, President

Glenn Hara, Treasurer/Controller

COOPERS & LYBRAND

Cary M. Okawa, C.P.A.

Dennis Tsuhaka, C.P.A.

Carl Kobayashi, C.P.A.

STATE OF HAWAII

Rey Graulty, Insurance Commissioner

Wayne Metcalf, (former) Insurance Commissioner

Margery Bronster, Attorney General

Kevin Wakayama, Deputy Attorney General

JOHN MULLEN & CO.

Robert Kuroda

Neal Seamon

Gary Gowdy

MARSH & McLENNAN, INC.

Rocco Sansone

Patricia Onogi

Christine Lee

M&M INSURANCE MANAGEMENT SERVICES, INC.

Peter Lowe, Sr. Vice-Pres.

Garrett Liu

UNITED EDUCATORS INSURANCE GROUP

Joseph McCullough

CHUBB INSURANCE GROUP

Milton T. Perkins

Michael Goolsby

M. Tony Rangel

ARKWRIGHT INSURANCE COMPANY/HOBBS GROUP

John McGrath

Tim McGrath

Mary Brieghner

Documents which relate to these allegations include:

► Federal and state tax returns, financial statements, invoices, credit memos, receipts and disbursements pertaining to insurance premium transactions, payments for insurance claims including legal expenses, and payments by KSBE and P&C to Marsh & McLennan, Inc., M&M Insurance Management Services, Inc., M&M Protection Services, Inc., and William Mercer Co.

► P&C’s application to the Insurance Commissioner, State of Hawaii, for a license to operate as a captive insurance company, including all supporting documents.

► My letter dated 11/20/96, to Coopers & Lybrand, with all enclosures, and any written response or record of discussion between Coopers & Lybrand and KSBE/P&C/PHC, or with M&M and/or M&MIMS, regarding this letter.

► My letter dated December 29, 1996, to Trustees, with all enclosures.

► P&C’s Operations Manual.

► My draft of P&C’s “Arms-Length Guidelines”.

► All sections in KSBE’s Policy and Procedures Manual which relate to conflicts of interest; maintaining arms-length relationships; bidding and contract procedures for third party contracts.

► Minutes from P&C’s Board of Directors meetings.

► The following documents relating to the Waterpark Tower Environmental Remediation project: Bid Specifications; List of Bidders; Bid Bonds; all Contracts (including Ed Tabangay’s); Performance Bonds; Staff Reports; all invoices.

► The contract (referred to in newspaper reports as an “insurance policy”) between KSBE and Robert Rubin guaranteeing the value of Mr. Rubin’s financial interests in Goldman Sachs. All documents related to this contract, including actuarial studies, reinsurance contracts, surety agreements, etc.

► Copies of any loan guarantees made by KSBE to any trustees, employees or business partners in any partnerships, joint ventures, or corporations in which KSBE had an interest.

► Sections of KSBE’s Employee Manual, staff reports, internal and external letters, memorandum, and written opinions relating to “arms-length” and conflicts of interest issues.

► Information, correspondence and staff reports relating to the “Taxpayers Bill of Rights II”, including KSBE’s lobbying activities and funds expended in its unsuccessful efforts to defeat the bill.

► The following Bate-stamped documents which I was required to return to KSBE under court injunction:

1-3; 4-5; 6-50; 61-63; 65-66; 67-80; 120-121; 132-134; 139-141; 142-151; 152-153; 154-155; 156-157; 158-159; 160-162; 165; 167; 176; 177-180; 182; 183-184; 185-188; 225-226; 227; 228; 229; 230; 242; 243; 258-259; 260; 261-262; 263; 264; 265; 266; 267; 268; 269-270; 271; 272; 274-275; 276-279; 281-282; 283-344; 391; 393-394; 397; 407-408; 409; 410-421; 440-441; 442-453; 454; 459; 461; 462-472; 473-474; 475-476; 477-478; 479-498; 543; 544-545; 546-547; 548; 549; 550-552; 553; 554; 562-564; 565-569; 621; 622-624; 733-734; 840-925; 976-977; 978-979; 980-991; 1008-1009; 1019-1023; 1076-1077; 1078-1079; 1080; 1081-1082; 1089; 1133-1150; 1151-1212; 1260-1261; 1270-1272; 1273; 1422-1427; 1428-1429; 1430-1433; 1434; 1435-1444; 1445; 1446; 1447; 1451-1458; 3073-3129; 3130.

Thank you very much for your efforts in helping restore control of the legacy of Bernice Pauahi Bishop to those who have a genuine concern for the true beneficiaries--the children of Hawaii.

Very truly yours,

Bobby N. Harmon

cc: State Attorney General Margery Bronster
John Goemans, Esq.
Roy Hughes, Esq.

~ ~ ~

NEW DISCOVERY (05-04-08): Undisclosed conflicts of interest between Randall Wulff, Larry Silverstein, U.S. Attorney General Michael Mukasey, Joshua Gotbaum, David C. Farmer, Steven Guttman, Roy Hughes, Colbert Matsumoto, James Watanabe, J. Douglas Ing, Diane Hastert, Bert Kobayashi, Warren Price III, James Duca, Chubb Group, Marsh & McLennan, AIG, and others:

April 21, 2004

Wulff Chosen to Head 9/11 Panel
on WTC Loss

Attorney was picked by judge in New York to help
on panel determining value of damages

By Josh Richman, STAFF WRITER, The Oakland Tribune

An East Bay attorney and mediator will play a pivotal role in determining the amount of loss resulting from the World Trade Center's destruction at the hands of terrorists Sept. 11, 2001.

Randall W. Wulff of Piedmont was selected Tuesday by U.S. District Chief Judge Michael B. Mukasey of New York to be chief umpire on a three-person appraisal panel that will address reconstruction costs as well as rental value and business interruption damages. Hearings are expected to begin later this year.

The battle over the monetary costs of the World Trade Center's destruction, and who will be paid how much for those costs, has become almost as twisted as the wreckage of the towers. And the battle has turned somewhat political, with New York officials touting the rebuilding of Ground Zero as crucial to the region's economic recovery.

World Trade Center leaseholder Larry Silverstein claims his insurers owe him almost twice their policy limits -- as much as $6.8 billion -- based on a switch in insurance forms that he believes recognizes the two impacts by two hijacked jet airliners as two separate losses. His claim went to a six-man, six-woman federal jury Monday after a 10-week trial.

After the jury -- and those in future proceedings involving other members of Silverstein's jury pool -- has determined the extent of the insurers' liability, it'll be up to Wolff's panel to determine what the actual losses are.

Wulff was with San Francisco's Farella, Braun and Martel from 1974 -- first as a trial lawyer, and from 1994 on as a "neutral" mediator -- until 2000, when he cofounded Oakland's Wulff Quinby Sochynsky, which exclusively provides mediation, arbitration and other alternative dispute resolution services.

He has helped settle almost 2,000 cases in the past 15 years, including the recent $1.1 billion settlement of the California class action against Microsoft. He also has helped resolve monetary disputes related to renovation of the Oakland Arena and construction of other high-profile projects from ballparks to Las Vegas casinos. And he has authored, edited or co-edited books on alternative dispute resolution.

His firm's Web site says his daily fee is $9,500 for cases in the Bay Area or Sacramento, $11,000 for cases elsewhere.

Wulff holds an undergraduate degree from the University of Oregon, attended the Netherlands Institute of International Business and holds a law degree from the University of California, Hastings College of the Law in San Francisco.

http://www.wqsadr.com/articles.html

REFERENCES

A sample of names follows here. A lengthier list of specific references from counsel and parties in cases where Mr. Wulff has acted as mediator is also available upon request....

Hawaii

Diane D. Hastert, Esq.
Damon Key Leong Kupchak Hastert
1600 Pauahi Tower, 1001 Bishop Street
Honolulu, HI 96813
Telephone: 808-531-8031

Bert T. Kobayashi, Esq.
Kobayashi, Sugita & Goda
First Hawaiian Center, Suite 2600
Honolulu, HI 96813
Telephone: 808-529-8700

Andrew Winer, Esq.
Winer Heheula & Devens
Pali Palms Plaza
970 North Kalaheo Ave, Suite A-300
Kailua, HI 96734
Telephone: 808-254-5855

David Schulmeister, Esq.
Cades Schutte Fleming & Wright
1000 Bishop Street, Suite 1000
Honolulu, HI 96813
Telephone: 808-521-9200

John T. Hoshibata, Esq.
Crabtree & Hoshibata
2300 Pauahi Tower
1001 Bishop Street
Honolulu, HI 96813
Telephone: 808-524-5644

Elton John Bain
Kessner Duca Umebayashi Bain & Matsunaga
19^th Floor, Central Pacific Plaza
229 South King Street
Honolulu, HI 96813

Warren Price III, Esq.
Price Okamoto Himeno & Lum
Ocean View Center
707 Richards Street, Suite 728
Honolulu, HI 96813
Telephone: 808-538-1113

Roy F. Hughes
Hughes & Taosaka
900 Pauahi Tower
1001 Bishop Street
Honolulu, HI 96813
Telephone: 808-526-9744

Brad S. Petrus
Tom Teetrus & Miller
The Arcade Building
212 Merchant Street, Suite 200
Honolulu, HI 96813
Telephone: 808-522-0800

Milton M. Yasunaga
Cades Schutte Law Firm
1000 Bishop Street, Suite 1200
Honolulu, HI 96813
Telephone: 808-521-9200

John T. Komeiji
Watanabe Ing & Komeiji
999 Bishop Street, 23^rd Floor
Honolulu, HI 96813
Telephone: 808-544-8300

Roger Moseley
Moseley Biehl Tsugawa Lau & Muzzi
1100 Alakea Street, 23^rd Floor
Honolulu, HI 96813
Telephone: 808-531-0490

James T. Paul, Esq.
Paul Johnson Park & Niles
Pacific Tower, 1001 Bishop St., Suite 1300
P.O.Box 4438
Honolulu, HI 96812
Telephone: 808-524-1212

James Lawhn
Oliver, Lau, Lawhn, Ogawa & Nakamura
707 Richards Street, Suite 600
Honolulu, HI 96813
Telephone: 808-533-3999

http://www.wqsadr.com/randallwwulff.html

~ ~ ~

NEW DISCOVERY (05-04-08) - Roy Hughes had undisclosed conflicts of interest in representing me as he was a previous law partner of Bishop Estate interim trustee Ron Libkuman and P&C Insurance Company’s attorney, Sidney Ayabe:

From the Dispute Prevention & Resolution website:

ROY HUGHES, ESQ.

All neutrals on the DPR Panel are willing to travel to the neighbor islands and the mainland. If you have any questions, please contact DPR at (808) 523-1234 Mr. Hughes was born on November 11, 1947 in Honolulu and attended Punahou School, graduating in 1966. He thereafter attended Ripon College, graduating in 1970, and Marquette University Law School, graduating in 1976.

Mr. Hughes participated in the briefing and arguments in the following reported Hawaii cases: Doherty v Hartford Insurance, 58 Haw. 570 (1978), Brown v Clark Equipment, 62 Haw. 530 (1980), King v Ilikai Properties, 2 Haw. App. 359 (1981), Peters v Peters, 63 Haw. 653 (1981), Socal v Hawaiian Insurance & Guranty Co., 65 Haw. 521 (1982), Lim v Harvis Construction Co., 65 Haw. 71 (1982), Kaneko v Hilo Coast Processing, 65 Haw 447 (1982), Alt v Krueger, 4 Haw. App. 201 (1983), Sturla v Firemans Fund Insurance Co., 67 Haw. 203 (1984), Rana v Bishop Insurance Co., 6 Haw. App. 1 (1985), Commerce & Industry Ins. Co. v Bank of Hawaii, 73 Haw. (1992), Pacific International Services Corp. v Hurip, 76 Haw. 209 (1994), Dunlea v Dappen, 83 Haw. 28 (1996), Island Insurance Co. v Johnny’s Plumbing, 86 Haw. 363 (1997), Tradewind Insurance Co. v Bayudan, 87 Haw. App. 379 (1998), and Island Insurance Co. v Dairy Road Partners, 92 Haw. 398 (2000).

http://www.dprhawaii.com/d.aspx?nid=164

~ ~ ~

NEW DISCOVERY (02-09-08) - Kamehameha Schools made a “confidential” settlement agreement with the plaintiff in the John Doe vs. Kamehameha Schools case, which my former attorney, John Goemans, Esq., says, according to what he has learned from the IRS, violates the rules for a non-profit charitable trust:

~ ~ ~

February 8, 2008

Kamehameha Schools settled
lawsuit for $7M

By Jim Dooley, Advertiser Staff Writer

Kamehameha Schools paid $7 million to settle a lawsuit filed by an anonymous student who claimed the schools' Hawaiians-first admissions policy violates civil rights laws, according to an attorney involved in the case.

Terms of the confidential settlement have been a closely guarded secret since it was signed in May just before the U.S. Supreme Court was to decide whether to hear the case.

The settlement ended a four-year effort by a non-Hawaiian teenager, known only as John Doe, to enter the Kamehameha Schools system.

Attorney John Goemans — who planned the legal action, found the plaintiff and brought the case to Sacramento private attorney Eric Grant to litigate — revealed the amount of the settlement in an exclusive interview with The Advertiser.

"The amount of the settlement is important public information that should be disclosed by a charitable institution that receives tax-exempt status from the Internal Revenue Service," Goemans said in a telephone interview.

The lawsuit challenging the schools' admissions policy was the first case of its kind to reach the doors of the U.S. Supreme Court and stirred enormous controversy in Hawai'i.

Critics of the settlement pointed out that additional legal challenges could still be mounted against the admissions policy, and news of the $7 million that the schools paid could increase the chances of new lawsuits.

Local attorney David Rosen, who made news last year by actively seeking plaintiffs for a new challenge to the admissions policy, said yesterday he is preparing a suit against Kamehameha Schools.

Kamehameha Schools, previously known as Bishop Estate, is a nonprofit organization with assets of $7.7 billion.

Grant, appearing yesterday at a University of Hawai'i law school symposium on the lawsuit, known as John Doe vs. Kamehameha Schools, declined to discuss the settlement when told that Goemans had disclosed the $7 million figure.

Kamehameha Schools' lead attorney in the lawsuit, Kathleen Sullivan, a former dean of the Stanford University law school, also declined comment.

"Terms of the settlement are inviolate," said Sullivan, also a participant at the UH symposium yesterday.

Ann Botticelli, spokeswoman for the Kamehameha Schools board of trustees, also declined to comment on Goemans' statements or the size of the settlement.

The settlement says that anyone who discloses its contents is subject to a $2 million penalty, but Goemans said he was not a party to the agreement and never signed it.

Goemans, who is recovering from heart surgery, said yesterday that he was opposed to the $7 million settlement but that "it was the client's decision" to accept it.

PART OF TAX RECORD

Goemans said an attorney representing Grant breached the confidentiality clause by mailing a copy of the agreement to Goemans last year.

Goemans added that Kamehameha Schools must disclose details of the settlement on its 2007 tax return, which is due to be filed later this year, and on annual financial reports the charity is required to file with the state attorney general's office and with the state court.

Tax returns of nonprofit institutions such as Kamehameha Schools are public records under federal law. The institution's annual financial accountings — which date to its founding by Princess Bernice Pauahi Bishop in 1888 — are also open to the public.

Kamehameha operates three campuses — its flagship at Kapalama Heights on O'ahu, one on Maui and another on the Big Island — for the benefit of children of Hawaiian ancestry.

The institution plays a central role in Hawai'i society, in part because of its financial clout and in part because of its mission to educate children of Hawaiian ancestry. It is also the state's largest private landowner.

There are about 70,000 school-age children with Hawaiian blood, and 5,400 students were enrolled at Kamehameha's various schools last year. Kamehameha served 30,000 other children and adults through outreach programs and through its support of charter schools.

TO SUPREME COURT

Hawai'i federal Judge Alan Kay initially dismissed the John Doe lawsuit in November 2003, upholding the schools' argument that the admissions policy helped address cultural and socio-economic disadvantages that have beset many Hawaiians since the 1893 overthrow of the Hawaiian monarchy.

The plaintiffs appealed that decision to the 9th U.S. Circuit Court of Appeals, which overturned it in a three-judge decision in 2005. That ruling prompted protest rallies, prayer vigils and other gatherings around the state in support of the schools.

Lawyers for Kamehameha Schools then asked that all members of the appellate court review the matter and the full court reversed the three-judge panel's decision by an 8-7 vote in December 2006.

Grant then petitioned the U.S. Supreme Court to hear the case, and last May, on the eve of the high court announcement on whether it would take the case, the matter was settled out of court.

"We didn't think that there was a strong possibility (of losing) but that risk is always out there," J. Douglas Ing, chairman of the Kamehameha board of trustees, said in announcing the settlement in 2007. "There are no guarantees and there certainly were no guarantees from our lawyers that we would win the case."

Grant, the attorney for John Doe, said after the case was settled, "Obviously, a settlement is not exactly what either side wanted. But it is something both sides eventually came to terms on."

SPATS OVER FEES

Goemans is involved in a continuing dispute with John Doe, whose identity has never been revealed, and with Grant over how much money Goemans should receive for his part in the case.

Grant received 40 percent of the overall settlement — $2.8 million — although he had to sue the plaintiff and the plaintiff's mother in federal court in Sacramento last year to collect the money, according to Goemans and federal court records.

That collection lawsuit was filed in June after Kamehameha had paid the $7 million settlement. The dispute over the payment of Grant's fee was settled and dismissed in September.

Goemans said he asked John Doe and Jane Doe for 25 percent of the total settlement — $1.75 million — but has not yet received a response.

Grant filed a separate lawsuit against Goemans in California state court last year regarding how much compensation Goemans is owed for his part in the case.

That suit is still pending, although Goemans said he believes it is groundless and will be dismissed.

Grant yesterday declined comment on the collection lawsuit he filed in Sacramento against his own clients or the related action he filed against Goemans.

Goemans said he has received $20,000 in compensation to date from John Doe and his mother and is contemplating filing a new legal action of his own against them.

Honolulu Advertiser

~ ~ ~

February 9, 2008

School's $7M deal
raises ire, eyebrows

By Jim Dooley, Advertiser Staff Writer

Yesterday's disclosure of the $7 million payment made by Kamehameha Schools to settle a civil rights lawsuit prompted questions and anger from individuals on both sides of the schools' controversial admissions policy that gives preference to students of Native Hawaiian ancestry.

"It does seem like a lot of money. It sure would be if it was in my pocket," said University of Hawai'i law school professor Jon Van Dyke, who served as a legal consultant to Kamehameha in the lawsuit.

Van Dyke said yesterday he wasn't part of the settlement discussions and still believes the payment led to the right outcome for the school.

The settlement was signed in May just before the U.S. Supreme Court was scheduled to announce whether it would hear an appeal of the case. Terms of the settlement had been kept confidential until this week. John Goemans, an attorney for the plaintiff in the case, revealed the $7 million figure to The Advertiser.

The settlement meant that an earlier 8-7 vote by the 9th U.S. Circuit Court of Appeals in favor of Kamehameha's admissions policy is still the prevailing law.

H. William Burgess, a local attorney who filed legal papers with the U.S. Supreme Court supporting the plaintiff in the case, said yesterday, "Wow. The settlement was much larger than I thought."

Burgess said he still believes the case should have been heard by the Supreme Court so that legal questions surrounding the school's Hawaiians-first admissions policy were settled.

"I actually think the trustees of the Kamehameha Schools have a legal duty, when there's a legitimate legal question about what they're doing, to seek a resolution of the issue," Burgess said.

News of the $7 million payment provoked more than 500 online postings to The Advertiser that variously criticized school officials who approved the payment and the lawyers and the client who received the money.

Beatrice "Beadie" Dawson, a native Hawaiian attorney who is active in Kamehameha Schools affairs, said yesterday the settlement itself and now news of the $7 million amount "are like an open invitation for more lawsuits."

"I was very dismayed by news of the settlement last year and I was very surprised by the size of it today," Dawson said.

Hawai'i attorney David Rosen, who last year announced plans to file another legal challenge to the school's admission policy, confirmed this week that the lawsuit is taking shape but has not been filed.

He issued a news release yesterday reacting to the settlement amount that said, "The people of Hawai'i should be outraged that the trustees of Kamehameha Schools place a higher value on discriminating rather than educating."

Goemans, the lawyer who publicly revealed the $7 million figure, said he believes the settlement should be a matter of public record given Kamehameha Schools' status as a tax-exempt charitable institution.

Goemans helped bring the civil rights lawsuit against Kamehameha in 2003 on behalf of a non-Hawaiian student denied admission to the high school. The student and the student's mother, who live on the Big Island, have never been identified except as John Doe and Jane Doe.

Goemans also said the settlement is subject to review by the Internal Revenue Service and by the state attorney general's office, which oversees Kamehameha Schools' annual financial accountings filed with state Probate Court.

Attorney General Mark Bennett could not be reached for comment yesterday.

David Fairbanks, a Honolulu lawyer serving as the appointed "master" who must review Kamehameha's financial fillings for the Probate Court, did not respond to a telephone message for comment yesterday.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.

Honolulu Advertiser

~ ~ ~

February 9, 2008

$7M

An attorney involved in a challenge to Kamehameha Schools' Hawaiians-only policy reveals the amount of a settlement

By Ken Kobayashi, Honolulu Star-Bulletin

Kamehameha Schools made the first move to settle a legal challenge to their admissions policy giving preference to native Hawaiians and later agreed to pay $7 million, a lawyer involved in the case said yesterday.

John Goemans, an attorney for an unnamed non-native Hawaiian student who filed a lawsuit contesting the policy, said the charitable trust offered for the first time to talk about an out-of-court settlement last May, just days before the U.S. Supreme Court was to decide whether to hear the case.

Goemans, a former Big Island attorney recuperating in Florida from heart surgery, and Sacramento, Calif., lawyer Eric Grant, the lead attorney, represented the unnamed student and his mother.

"They (the schools) approached Eric and said we wanted to settle and we have to settle by Friday morning," when it was believed the high court was to make a decision about accepting the case, Goemans said.

He said it appeared the high court would accept their appeal of an 8-7 decision by the 9th U.S. Circuit Court of Appeals that upheld the policy.

"They (the schools) were worried about losing in the Supreme Court," Goemans said.

Goemans said he did not know how Grant and the Kamehameha Schools arrived at the $7 million figure.

The hotly disputed federal civil rights lawsuit caused a firestorm of controversy among Kamehameha Schools supporters who believed the challenge struck at the more than century-old admissions policy and the heart of the charitable trust's mission to educate children of Hawaiian ancestry.

The confidential settlement was announced on May 14. Those connected with the case repeatedly refused to disclose the terms.

Goemans said he was disclosing the amount because he said he recently learned from Internal Revenue Service officials that Kamehameha Schools, a tax-exempt charitable trust, cannot keep the figure confidential.

"Because exempt organizations operate in the public good, you got to report all your expenses with particularity, and you cannot keep information relative to those expenses confidential," he said. "It's in the public interest to have full disclosure."

Ann Botticelli, Kamehameha Schools spokeswoman, said yesterday the settlement contained a confidentiality clause.

"We intend to honor the terms, and we will not be discussing the settlement or John Goemans' assertions," she said.

Grant said yesterday he had no comment.

Kamehameha Schools, a multibillion-dollar charitable trust and the state's largest private landowner, was established under the 1883 will of Princess Bernice Pauahi Bishop. It educates more than 6,700 students at its flagship campus at Kapalama Heights, two other campuses on Maui and the Big Island, and 31 preschools throughout the state.

Senior U.S. District Judge Alan Kay upheld the school's Hawaiians-first policy, but a panel of the appeals court in San Francisco ruled 2-1 that the practice violated federal civil rights laws. That decision triggered statewide protests and marches by school supporters.

Later, a larger appeals court panel voted 8-7 to uphold the policy.

It was an appeal by Grant of that 8-7 ruling that was on the doorsteps of the U.S. Supreme Court when the settlement was announced.

At the time, school officials indicated that the settlement calling for the dismissal of the lawsuit leaves intact the appeals court's 8-7 decision upholding the admissions policy.

But the dismissal does not guarantee that another lawsuit might surface and make its way to the high court, although it would first have to go through the federal trial and appeals courts, where the 8-7 ruling would be considered to be binding on the issue. But even if those who file the new lawsuit lose on those two levels, they could still ask the high court to review the case.

Honolulu attorney David Rosen said he has plaintiffs for a lawsuit to challenge the admissions policy. He said the settlement does not affect his case. Rosen said he expects the suit will be filed this year.

Goemans said Grant received 40 percent, or $2.8 million of the $7 million. Goemans said he is preparing to file his own lawsuit seeking to recover a "reasonable percentage" of the $7 million for his work in the case.

Goemans said he found the unnamed student and arranged for Grant to be the attorney for the student and his mother.

"I put the whole thing together," Goemans said. "But for me there would not have been a $7 million payment."

The student never was admitted to Kamehameha Schools because his case was pending. He has since graduated from high school and had been attending college, Grant said last year.

http://starbulletin.com/2008/02/09/news/story02.html

~ ~ ~

February 9, 2008

Amount of settlement
raises critical concern

By Robert Shikina, rshikina@starbulletin.com

Supporters and critics expressed surprise yesterday at the $7 million Kamehameha Schools paid a student to settle a lawsuit disputing its Hawaiians-first admission policy.

One Kamehameha Schools alumnus says disclosure of the settlement with the anonymous, non-Hawaiian student will prompt questions among Hawaiians.

"I'm not happy with $7 million," said Kamehameha Schools alumnus Jan E. Hanohano Dill. "Unfortunately, that's a lot of money, and it's going to create a lot of questions in the Hawaiian community whether it was right or wrong and to continue."

Dill, also a board member of Na Pua a Ke Ali'i Pauahi, a nonprofit group whose members include students, parents, and alumni of Kamehameha Schools, said he continues to support the school's decision.

"I don't know the details, and I think that's something that has to be cleared," he said. "You settle because you want to avoid costs that would be incurred as you go forward."

He added, "I have to believe that they understood that this was something good for the Hawaiian people. ... It will be clear as things unfold whether that was true."

Dill, who is also president of the nonprofit Partners in Development Foundation, said the admissions policy must eventually be addressed and that the settlement avoids this case but does not stop other cases.

Marion Joy, former vice president of Na Pua, called the settlement a "misuse of trust funds."

"The trust is continually going to be challenged," she said. "This is not going to be the last. ... As far as settling for the particular lawsuit, it's not in the best interests of the beneficiaries (of the 1883 will of Princess Bernice Pauahi Bishop)."

Kamehameha Schools declined comment.

Honolulu attorney David Rosen, who has sought potential clients to sue Kamehameha over its admissions policy after the settlement, sent out a statement yesterday that said the $7 million settlement was used to "buy off this case."

He added that the trustees should open a campus on the Leeward Coast of Oahu and possibly Molokai where increased educational opportunities are needed.

H. William Burgess, a retired attorney and founder of Aloha for All, a group opposed to Hawaiian sovereignty, said the settlement raises questions about the proper use of the trust funds.

"Normally, trustees, if they're doubtful about doing something, they ask the court to give them instructions," he said. "Yet in this case, the biggest charitable trust, probably in the nation, instead of welcoming the opportunity to get the highest court in the land to settle it, they pay $7 million to leave it open. And it is very much open."

http://starbulletin.com/2008/02/09/news/story03.html

* * *

From The Catbird Seat website:

The Wise Old Owl asks: How much of the settlement amount came from Kamehameha’s insurance companies, and how much came from the trust funds? How much did Kamehameha Schools (and/or their insurance company) spend for defense costs in this case before they decided to settle? Who is their insurance company? Their insurance broker? Who actually signed the Settlement Agreement?

http://www.kycbs.net/Bishop7.htm

~ ~ ~

U.S. Department of Justice

Executive Office for United States Trustees

Washington, D.C.
Office of Research and Planning

PRESS RELEASE

For Immediate Release
October 30, 2001

U.S. TRUSTEE PROGRAM LAUNCHES
BANKRUPTCY CIVIL ENFORCEMENT INITIATIVE

WASHINGTON, D.C.--The United States Trustee Program has launched an initiative to more aggressively use existing civil enforcement methods to curb abuse of the bankruptcy system, Martha Davis, Acting Director of the Executive Office for United States Trustees, announced today.

"Effective case administration is vital to ensure the American public that the bankruptcy system provides relief for honest but unfortunate debtors overcome by serious financial difficulties," Davis stated. "The Civil Enforcement Initiative emanates from the U.S. Trustee Program's long-standing commitment to enforce the Nation's bankruptcy laws and explore other meaningful strategies to bolster public confidence in the integrity and effectiveness of the bankruptcy system."

"The priorities of the initiative will require a concerted effort nationwide to use existing tools in a way that best accomplishes tangible results and improvements for case administration," Davis continued. "Many of our offices use such strategies today and we hope to build upon their experience. By focusing our resources on these priorities, we also seek to address some of the concerns that have been at the forefront of debate in recent years both before Congress and in other public venues. In the end, this is very much a community effort that will require communication and cooperation with private bankruptcy trustees and with the bankruptcy bench and bar."

These are the priorities of the Civil Enforcement Initiative:

Ensuring that Chapter 7 is not abused and that Chapter 7 debtors are held accountable.

Chapter 7 debtors who do not comply with the law will have their cases converted or dismissed, or their bankruptcy discharges denied or revoked. Enforcement measures include motions to dismiss Chapter 7 cases under 11 U.S.C. §§ 707(a) and 707(b), and complaints to bar or defer discharge under 11 U.S.C. § 727.

Protecting consumer debtors, creditors, and others who are victimized by those who mislead or misinform debtors, make false representations in connection with a bankruptcy case, or otherwise abuse the bankruptcy process.

Attorneys and bankruptcy petition preparers (non-attorneys who prepare bankruptcy documents for a fee) must engage in full disclosure, be free of conflicts of interest, and engage in ethical practices. Enforcement measures include motions for sanctions, contempt of court, and disgorgement under 11 U.S.C. § 329 for misconduct by attorneys, and complaints and motions under 11 U.S.C. § 110 for misconduct by bankruptcy petition preparers....

Fighting fraud and abuse by making criminal referrals and assisting United States Attorneys in criminal prosecutions.

The U.S. Trustee Program is a component of the Justice Department that oversees the administration of bankruptcy cases and intervenes in court to enforce the bankruptcy laws. There are 21 regions in the Program, each headed by a U.S. Trustee appointed by the Attorney General.

The Civil Enforcement Initiative took effect Oct. 1, 2001, with the start of the federal government's 2002 fiscal year. Previous U.S. Trustee Program initiatives have focused on issues such as enhancing the supervision of private trustees who administer Chapter 7 bankruptcy cases, increasing the efficiency and speed of Chapter 7 case administration....

Contact:

Jane Limprecht, Public Information Officer

Executive Office for U.S. Trustees

(202) 305-7411

www.usdoj.gov/ust/eo/public_affairs/press/docs/pr20011030.htm

~ ~ ~

Roy Hughes is expected to testify as to the reason why, according to Court Records, Island Insurance Company was NOT listed as a Party in Defendant’s RICO Lawsuit, and why he was not listed as an Attorney for Defendant.

Roy Hughes is also expected to testify as to why he failed to verify that Robert Katz and Matt Tsukazaki of Torkildson Katz Fonseca Jaffe & Moore, and Kenneth Hipp of Marr Hipp Jones & Pepper were NOT authorized attorneys, as they claimed, for Kamehameha Schools/Bishop Estate, its Trustees and its employees who were named in the RICO Lawsuit, when Court Records listing the Parties, and the Attorneys, indicate that these named parties were NOT REPRESENTED by any attorneys.

Roy Hughes is expected to testify regarding his efforts to obtain Attorney of Record letters and investigate possible fraud in the settlement negotiations and in the execution of the Settlement Agreement.

Roy Hughes is also expected to testify regarding his business, professional and personal relationships with John Goemans, Eden Elizabeth Hifo (fka Bambi Weil, William S. Richardson, Colbert Matsumoto; Michael Tanoue; Wayne Arakaki; James Duffy; John Marshall; Jeffrey Watanabe; Island Insurance Co.; Dexter Ego; Linda Lingle*; Cutter Dodge, Inc*; Thomas Pico, Jr.*; Mary Zanakas-Pico*; John Peterson, Kamehameha Schools; Guido Giacometti; Susan Tius; Mario Ramil; Mark Bennett; Hugh Jones; Lawrence Goya; Dorothy Sellers; Earl Anzai; Margery Bronster; J.P. Schmidt; Rey Graulty; Wayne Metcalf; Linda Chu Takayama; Randall W. Wulff, Wulff Quinby & Sochynsky; Elton John Bain, Kessner Duca Umebayashi Bain & Matsunaga; Paul Alston; James T. Paul, Paul Johnson Park & Niles; Warren Price III, Price Okamoto Himeno & Lum; Judith Neustadter Fuqua, James Nicholson, David Farmer, Steven Guttman, Dan Case, Steve Case, Suzanne Case, Jeffrey Case, Ed Case, Barack Obama, Dee Jay Mailer, Bank of Hawaii, Gilbert Tam, Ron Libkuman, Sidney Ayabe, Randall W. Wolff, Valerie U. Katz, Cary Okawa, Dennis Tsuhako, PricewaterhouseCoopers, Robert Wrede, and others to be determined upon discovery.