David C. Farmer vs. Harmon - Witness Robert K.U. Kihune

According to Robert Kihune’s Deposition in EQ2048 (page 23): “I had three jobs as a vice admiral before I retired. The first job I had was called the Assistant Chief of Naval Operations for Surface Warfare. I was responsible for all of the procurement of all the ships in the Navy. I also procured all the weapon systems for all the ships in the Navy. I had a budget of $22 billion dollars.”

Robert K.U. Kihune is expected to testify as to the facts and circumstances of the Settlement and the actions taken by Defendant subsequent to entering into the Settlement Agreement, including Defendant’s alleged breaches of the Agreement through his alleged “letter writing campaign”.

Robert Kihune will be asked to provide evidence that he had the legal authority to sign the Settlement and Indemnity Agreement on behalf of the former Incumbent Trustees, and with the express written authorization of KSBE’s liability insurance carriers, P&C Insurance Company, Inc, Federal Insurance Co. (Chubb Group), and XL Insurance Co.

Robert Kihune is also expected to explain why, as an Interim Trustee, his act of signing the Settlement Agreement on behalf of the former Incumbent Trustees does not violate the insurance provisions of the applicable insurance policies, and the Closing Agreement with the IRS.

Robert Kihune is expected to furnish evidence of the appointment of the attorney for Kamehameha Schools, purported to be Kenneth Hipp, in Case No. 99-04339, and the approval of this attorney by Kamehameha School’s insurance carriers.

"KSBE TRUSTEE UPDATE, by Rick Daysog" - (An Exhibit in CV05-00030 - U S Dept of Justice vs Harmon)

"President Barack Obama" <president@whitehouse.gov>, "U.S. Attorney General Eric Holder" <AskDOJ@usdoj.gov>, "David Farmer" <farmerd001@hawaii.rr.com>, "Steven Guttman" <sguttman@kdubm.com>, "Carol K. Muranaka" <ustp.region15@usdoj.gov>, "Judge David A. Ezra" <theresa_lam@hid.uscourts.gov>, "Judge Kevin S.C. Chang" <shari_afuso@hid.uscourts.gov>, "Judge Barry M. Kurren" <tammy_kimura@hid.uscourts.gov>, "Securities & Exchange Commission Enforcement Division" <enforcement@sec.gov>, "U.S. Treasury Dept. Office of Inspector General" <hotline@oig.treas.gov>, "Office of Inspector General US Dept of Justice" <oig.hotline@usdoj.gov>, "Executive Office for U.S. Trustees" <ustrustee.program@usdoj.gov>, "Judge Robert Faris" <hib@hib.uscourts.gov>, "SEC Office of The Inspector General" <oig@sec.gov>, "Hawaii State Bar Association" <info@hsba.org>, "Hugh Jones" <hugh.r.jones@hawaii.gov>, "Insurance Division Fraud Branch" <insfraud@dcca.hawaii.gov>, "Lawrence Reifurth" <dcca@dcca.hawaii.gov>, "Linda Lingle" <governor.lingle@hawaii.gov>, "Jo Ann Uchida" <rico@dcca.hawaii.gov>, "Office of Inspector General Civil Rights Complaints" <inspector.general@usdoj.gov>, "Mark Bennett" <hawaiiag@hawaii.gov>, "American Arbitration Association" <webcase@adr.org>, "Judith Neustadter" <Judy@tiki.net>, "Benjamin J. Cayetano" <bjcayetano@aol.com>, "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>, "Benjamin Kudo" <bkudo@imanakakudo.com>, "Bradley Tamm" <btamm@hawaii.rr.com>, "Carl Morton" <ethics@hawaiiethics.org>, "Charles Hurd" <mcp@mediatehawaii.org>, "David Shapiro" <volcanicash@gmail.com>, "Dee Jay Mailer" <ksinfo@ksbe.edu>, "J C Shannon" <Hapa1234@aol.com>, "James B Nicholson" <jamesbnicholson@aol.com>, "James B. Farris" <Farrisj@adr.org>, "James Cribley" <jcribley@caselombardi.com>, "James Wriston" <jwriston@awlaw.com>, "Jeffrey Watanabe" <jwatanabe@wik.com>, "Jim Dooley" <jdooley@honoluluadvertiser.com>, "Joe Moore" <news@khon2.com>, "John D. Finnegan" <info@chubb.com>, "Judson Witham" <jurisnot3@yahoo.com>, "Ken Conklin" <ken_conklin@yahoo.com>, "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>, "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>, "William K Slate" <Websitemail@adr.org>, "Jim Terrack" <tnthawaii@aol.com>, "Rocco Sansone" <rocco.c.sansone@marsh.com>, "Ted Pettit" <tpettit@caselombardi.com>, "Laura Thielen" <dlnr@hawaii.gov>, "Vaughn & Lynda Robinson" <ronpaulslcutah@yahoo.com>, "Rebecca Christie" <rchristie4@bloomberg.net>, "Catbird" <the-catbird@hotmail.com>, "James Duca" <jduca@kdubm.com>, "Ian Lind" <diary@ilind.net>, "Roy F. Hughes" <hthughes@hawaii.rr.com>, "Jack Cashill" <JCashill@aol.com>, "Marshall Chriswell" <mc@whistleblowers.org>, "Laser Haas" <laserhaas@msn.com>, "Lucy Komisar" <lkomisar@msn.com>, "Democrats.com" <activist@democrats.com>, "Debra Sweet" <debrasweet@worldcantwait.org>, "Jane Kirtley" <kirt001@umn.edu>, "John Jubinsky" <Jube@tghawaii.com>, "Yamil Berard" <yberard@star-telegram.com>, "Global Exchange" <communications@globalexchange.org>, "William K. Black" <blackw@umkc.edu>, "Carole Williams" <cjwms@up.net>, "Susan Tius" <STius@rmhawaii.com>, "Human Rights in China" <hrichina@hrichina.org>, "Michelle Malkin" <writemalkin@gmail.com>, "Phil J. Berg" <philjberg@obamacrimes.com>, "Amnesty International U.S.A." <aimember@aiusa.org>, "Michael Moore" <bailout@michaelmoore.com>, "California Anti-SLAPP Project" <info@casp.net>, "Thomas Fitton" <info@judicialwatch.org>, "Ron Branson" <VictoryUSA@jail4judges.org>, "ACLU of Kentucky" <info@aclu-ky.org>, "ACLU Online" <ACLUOnline@aclu.org>, "Louanne Kam" <lokam@ksbe.edu>, "Paul Kiel" <paul.kiel@propublica.org>, "Fiona Tarazi" <Fiona.Tarazi@propublica.org>, "Eric Martinson" <emartinson@tradewindcap.com>, "Bruce Nakaoka" <bnakaoka@tradewindcap.com>, "Oswald Stender" <info@oha.org>, "Crystal Rose" <mail@legalhawaii.com>... more

KSBE trustee update

July 16th, 2009 by Rick

The state Probate Court will hold a hearing tomorrow morning on a new Kamehameha Schools trustee.

Finalists include Department of Hawaiian Home Lands Chairman Micah Kane, Hawaii Community Development Authority Executive Director Anthony Ching, and former Kamehameha Schools executive, and ex-DHHL chairman Ray Soon to replace outgoing trustee Robert Kihune whose term ends tomorrow.

Unlike recent appointments to the trust's five-member board, this one has generated some discord in the Kamehameha ohana.

In May, the court-appointed master for the estate recommended extending Kihune's term by a year before backing away from the plan.

Shortly after the master made his recommendation, several prominent native Hawaiian women criticized the court-appointed screening panel for not considering a female among the finalists.

There are other logistical problems.

If the Probate Court ends up picking either Kane or Ching, it could conflict with a Kamehameha Schools internal policy against hiring or contracting current or former government official.

(The policy does not bar Soon from being hired because his employment as DHHL's chief occurred more than three years ago.)

The internal policy is part of the governance reforms implemented by Kamehameha Schools in wake of the late 1990s trust scandal.

It was meant to address the much-maligned practice of hiring or contracting with elected and appointed state officials such as former state Sen. Milton Holt, former state Sen. Marshall Ige, former state House Rep. Terrance Tom and ex-state Budget Director Yukio Takemoto.

The internal policy differs from the 1999 closing agreement with the Internal Revenue Service, which settled the IRS's long-running audit of the trust's finances and governance policies.

The IRS closing agreement only bans the hiring of current and former elected officials and not appointed officials such as Kane and Ching.

Of course, an internal policy banning the hiring of government officials is not binding on the Probate Court and the current board of trustees could chose to waive the internal policy in this case.

What's more, the position of a trustee is a gray area because experts argue that a trustee is not exactly an employee nor can they be considered outside contractors.

But what's troubling to some in the Kamehameha ohana is that the trustee screening committee didn't appear to take this internal policy into consideration.

If's far too late to redo the selection process but the proper thing the screening committee should have done is to acknowledge the potential conflict with the internal policy by petitioning the court for instructions, some legal experts say.

Otherwise, it makes it appear as the though the screening committee is ignoring the sad history of the trust's political activities during the 1980s and 1990s, they said.

Tags: Anthony Ching, Hawaii politics, Kamehameha Schools, Micah Kane, Ray Soon, Retired Adm. Robert Kihune, trustee selection
Posted in Biz Bites | No Comments »

http://bizbites.honadvblogs.com/

* * *

July 17, 2009

Dear President Obama, Attorney General Holder, Trustee Farmer, Mr. Guttman, Ms. Neustadter, Judge Kevin Chang, Judge David Ezra, and All Concerned:

Due to the new discovery of facts that directly relate to this lawsuit which violates my constitutional rights of Free Speech and a Fair Trial, and Federal and State Anti-SLAPP statutes, I am adding the subject Exhibit.

You will find related information online at:

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

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

http://www.kycbs.net/Hawaiian-Home-Lands.htm

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

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

http://www.kycbs.net/CV05-00030-Witness-Chang-Kevin.htm

http://www.kycbs.net/CV05-00030-Witness-Ing-Douglas.htm

http://www.kycbs.net/CV05-00030-Witness-Kihune-Robert.htm

http://www.kycbs.net/CV05-00030-Witness-Libkuman-Ronald.htm

http://www.kycbs.net/CV05-00030-Witness-Matsumoto-Colbert.htm

http://www.kycbs.net/CV05-00030-Witness-Tam-Gilbert.htm

Mr. Farmer and Mr. Guttman, in spite of all this factual evidence (not just "political opinions" or "conspiracy theories" as you have previously alleged), I am again asking that we attempt to reach a global settlement of this matter through confidential negotiation or mediation rather than continuing these costly and seemingly-endless court proceedings.

However, if you and your insurance carriers are still not willing to attempt to negotiate or mediate settlement in these cases, then I ask that you perform your mandated review of these two Exhibits in accordance with Judge Ezra's Order, and advise me, whether or not, you find that they are relevant and if they contain any so-called "protected subject matter".

I respectfully request your immediate reply. If I do not receive a response from you or your insurance carrier within 15 days, I will assume that you have found no "PSM" in these updated pages, and that you will NOT file any objections to my Motion.

Very truly yours,

Bobby N. Harmon, CPCU, ARM

Additional References:

http://www.kycbs.net/

http://www.kycbs.net/Apartheid-Hawaii.htm

http://www.kycbs.net/BH-CHRON-88-96.htm

http://www.kycbs.net/BH-CHRON-97-99.htm

http://www.kycbs.net/BH-Settlement-Chronology.htm

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

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

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

http://www.kycbs.net/CV05-00030-OUST-vs-Harmon.htm

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

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

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

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

http://www.kycbs.net/RICO-in-Paradise.htm

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

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

http://voy.com/129276/

http://whistlersongs.blogspot.com

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.

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.

Trustees of the Kamehameha Schools received much deserved applause last month when they rejected a court-approved pay increase plan and instead took a 10 percent pay cut.

After all, it's the prudent thing to do in face of the trust’s weakened financial condition, members of the Kamehameha Schools ohana have said.

But others, including former Gov. Ben Cayetano believe the way trustee pay is set is still out of whack and opens the trust to the type of abuses that haunted the estate during the late 1990s.

Previously, trustee pay was based on a formula set by law which entitled them to up to 2 percent of the estate’s annual gross. That resulted in $1 million-a-year trustee pay checks that nearly got the trust's tax-exempt status revoked by the Internal Revenue Service.

Now, trustee pay is supposed to be set at reasonable levels. Every several years, a Probate Court-appointed panel is supposed to come up with recommendations on what those reasonable levels are.

In 2004, the panel approved raising trustees maximum pay by more than 69 percent, generating much criticism among the schools’ ohana and the state Attorney General.

Last year, the panel approved a similar plan before trustees decided to take their pay cut. The increase was again opposed by some members of the Kamehameha ohana as well as by the Attorney General’s office.

According to Cayetano, the lack of a more permanent trustee compensation schedule exposes the trust to future controversies.

In the past, the lucrative trustee compensation served as the “root cause for the ethical and political problems” that plagued the estate during the 1980s and 1990s, Cayetano wrote in his recently published memoir “Ben.”

It not only led to corrupted trust but it also tarnished the state Legislature and the state judiciary.

But in approving steep pay raises for the trustees, Cayetano see a potential for history repeating itself:

“One could only wonder whether the panel, the probate judge and the new trustees had learned any lessons from the Bishop Estate controversy,” he wrote.

“The failure of the new trustees to ‘clean house’ left me wondering whether the problems that vexed the old trustees and the Bishop Estate would emerge again one day when the passing of time had blurred the reasons the reforms were made in the first place.”

In a little-noticed May 16 ruling, the Federal Communications Commission (FCC) has granted a waiver necessary to allow Sandwich Isles Communications to complete construction of its $500 million project to link 69 Hawaiian Homelands properties with a fiber optic communications network.

Sandwich Isles, had completed about $160 million worth of construction bringing its network to all the islands except the Big Island, when in October, 2004 the FCC suddenly acted on a 6-year-old complaint from telecom rival Verizon. As a result of the October ruling, Sandwich Isles was forced to reapply for its FCC waiver which allowed SIC to receive $400 million in federal funds taken from the "Universal Service Fund" (USF) tax on consumers’ phone bills.

The Universal Service Fund tax is intended to subsidize telecommunications service to un-served rural areas. Verizon Hawaii, now re-named Hawaii Telecom after being purchased by the Carlyle Group, had argued the DHHL lots Sandwich Isles proposed to serve were not unserved because they were within Verizon territory. With the waiver granted, federal funds can once again flow into Sandwich Isles Communication’s coffers and construction can be completed on the Big Island.

Gilbert Tam, Sandwich Isles Communications Vice President for government and community relations, says, the company "is pleased with the FCC order" which "allows SIC to fulfill its commitment and efforts to provide modern and affordable telecommunications services to residents of Hawaiian Home lands."

At an estimated cost of $500 million, is Sandwich Isles Communications were to serve all 20,000 DHHL lots, the cost would be $25,000 per lot. But DHHL has only about 5,400 lots occupied by leaseholders.

At current build-out rates it would be about 40 years until all 20,000 lots are filled. $500 million to wire 5,400 lots averages out to about $93,000 per lot -- the construction cost of a house -- just for high speed internet and phone service. Further, there is no reason to believe that all 5,400 DHHL leaseholders would want to pay Sandwich Isles Communication’s monthly fees for high speed internet service.

Many DHHL homesteaders already have land lines from Verizon. In the United States, about 33 percent of households have high speed internet connections.

If DHHL leaseholders have the same level of interest in high speed internet connections, Sandwich Isles Communications would serve about 1,800 lots at an average cost to the taxpayers of about $278,000 per lot. Currently, Sandwich Isles Communications is reported to serve about 1300 customers.

These figures compare unfavorably to the $600 or less setup cost of many commercially available high-speed satellite internet connections. Internet satellite providers’ monthly charges are competitive with those of Sandwich Isles Communications. With inexpensive, commercially available "VOIP" technology, high quality internet based telephone service can be included.

Satellite technology requires no digging to lay cables, thus minimizing environmental damage and disruption of Hawaiian sites. Unsurprisingly, Sandwich Isles is led by many politically connected directors and corporate officers.

Part of the reason Sandwich Isles Communications has attracted interest in Hawaii political circles is that the company has ties to a variety of politicians and current or former executives involved with Kamehameha Schools, another politically influential local institution.

Al Hee says his brother Clayton, then chairman of the board of trustees of the Office of Hawaiian Affairs, is not involved in the project. Sandwich Isles did hire Clayton Hee's wife, Lynne Waters, to produce videos for presentations to business leaders, homesteaders and others on the company's operations.

Among (Sandwich Isles’)... 22 employees are former Democratic House Majority Leader Tom Okamura and former state Rep. Devon Nekoba, who both carry the title of agency coordination officer. (Al) Hee says the two advise company executives on government policy matters.

Ties to Kamehameha Schools, formerly known as the Bishop Estate, include Gil Tam, the company's vice president of government and community relations, formerly director of administration and interim chief executive officer for Bishop Estate; and Robert Kihune, chief executive officer, now a Kamehameha Schools trustee.

The Hawaiian Homes Commission chairwoman in 1994, when the commission approved Hee's license (to provide communications services), was Hoaliku Drake, the mother of former Bishop Estate trustee Henry Peters.

Clayton Hee is a friend of Peters and was hired as a cultural affairs researcher for the Royal Hawaiian Shopping Center, a subsidiary of the former Bishop Estate/Kamehameha Schools (KSBE).

In Harmon vs. Federal, et al, a lawsuit stemming from the Broken Trust expose, plaintiff Bobby Harmon, former P&C President, alleged "Tam's actions, through his complicity, deceptions, and breach of fiduciary duties, in collusion with some or all of trustees of KSBE, with other managers and employees of KSBE, with other officers and directors of P&C, and with outside contractors, attorneys, politicians and others, constituted a conspiracy to defraud P&C and the beneficiaries of the Estate of Bernice Pauahi Bishop; racketeering; mail fraud; wire fraud; extortion; and violation of IRS interim sanctions regulations...."

In addition to "Broken Trust" connections, Sandwich Isles also benefits from a connection with former FCC Chairman Michael Powell, son of former Secretary of State Colin Powell, and a mid-1970s Annapolis Naval Academy classmate of SIC President Al Hee. The FCC’s sudden decision to rule on Verizon’s complaint corresponds in time closely to Michael Powell’s resignation as FCC chair.

There is also a correspondence in timing between the purchase of Verizon’s Hawaii assets by the Carlyle Group, with many well-known connections to both Democrat and Republican national political leaders and appointees, and the FCC’s subsequent ruling in SIC’s favor.

Sandwich Isles Communication’s cable-laying contractor is MasTec, named for its founder the late Jorge Mas Canoza, Cuban exile leader. On the MasTec board, is Joseph Kennedy II, whose family connections with Mas Canoza go back to the Bay of Pigs.

Amazingly for a $500 million fiber-optic communications company, Sandwich Isles does not have a Web site. Sandwich Isles Communications shares offices with Waimana, Inc, Richardson-Luke, and Ku`iwalu. As of today, June 2, 2005, Sandwich Isles Communications has not released to this writer a complete list of company officers and directors and their total remuneration.

Andrew Walden is the publisher and editor of Hawaii Free Press, a Big Island Based newspaper. He can be reached via email at andrewwalden@email.com

HawaiiReporter.com reports the real news, and prints all editorials submitted, even if they do not represent the viewpoint of the editors, as long as they are written clearly. Send editorials to Malia@HawaiiReporter.com

NEW DISCOVERY (03-14-09): More undisclosed conflicts of interest between Steven Guttman, Mary Lou Woo, David Farmer, Larry Johnson, Robert Kihune, Sandwich Isles Communications, Bank of Hawaii, Gilbert Tam, Barack Obama, Steve Case, AOL, Dan Case, Punahou School, Citigroup, Robert Rubin, Henry Paulson, The Nature Conservancy, Suzanne Case, Faye Kurren, Goldman Sachs, Kamehameha Schools, University of Hawaii, etc.

Former Bank of Hawaii Chief Executive Michael O'Neill reportedly is one of the candidates being considered for a position on the board of directors at financially troubled Citigroup Inc.

O'Neill, who turned around Bankoh's lagging fortunes in less than four years before retiring at age 57 in August 2004, was mentioned along with former U.S. Bancorp CEO Jerry Grundhofer and William S. Thompson, former co-chief of bond investment manager Pimco, according to a report in the Wall Street Journal.

The newspaper said Citigroup is expected to announce the board changes next week when it files its proxy statement with the Securities and Exchange Commission. Any nominees would have to be formally approved by the board and voted on by shareholders.

O'Neill took over then-called Pacific Century Financial Corp. from Larry Johnson on Nov. 3, 2000, and in less than four years transformed the bank into a more efficient operation, elevated earnings to record highs and increased shareholder value nearly fourfold.

He also became somewhat of a TV personality with the bank's "Tell Mike" campaign.

Richard Parsons, a one-time University of Hawaii student who took over as chairman last month, is one of the few Citigroup directors with experience in both banking and leading a large company.

NEW DISCOVERY (10-11-08): Additional facts regarding conflicts of interests between Steven Guttman and numerous parties related to this case:

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.

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.

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.

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.

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

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.

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.

Check out James B. Nicholson, Trustee vs. Harmon - Witness Judge Susan Oki Mollway

FYI: Susan Oki, Echi Oki, Dan Mollway, Airline Industry, SEC, and the Broken Trust Asian Pacific Bamboo Legacy in collusion with AIPAC Political influence in the powerful influential Defense Appropriation Committee members {Ted Stevens and Duke Cunningham} under Hawaii U.S. Senator Daniel Inouye's leadership...... and the stealth Political, Economic, and Socialized intents for the pending AKAKA BILL in Congress, documented, again, under "A Confederacy of Dunces" {Forbes}.

Hey CB....this one is the ultimate "insiders" in Hawaii regulatory Government for the Broken Trust cabals linked to the Hawaii Legislature members including their own Federal Reps in Washington protecting their Hawaiian Hui "inside" investors from Southeast Asia to Wall Street:

I talked with the State Ethic's Commissioner / Director, Dan Mollway....Ms. Susan Oki's husband... about the BIG conflicts of interests involving our case against the State DLNR, The Ombudsman Office Director, The DCCA Rico "Investigations" with huge Political cover-ups involving the ANZAI's and the Hawaii Judicial system protecting their own regulatory local hui investors linked to the Bishop Estate Trustees.

Dan Mollway was involved with the "separate" Investigations involving the DLNR Bureau of Conveyance Public land records being ILLEGALLY manipulated and tampered for "Controlled Business" practices by the private sector {Title Guarantee Company employees with Realtors linked to Hoiku Consultant private computers being placed strategically in Public Office Government Buildings linked to the Hawaii Legislature members and the KSBE investments under Headmaster Colbert Matsumoto}.

He claimed that the State Ethics Department was still in the process of their own "separate" investigations {with vague public follow-ups since last year} while the State of Hawaii Attorney General's office conducted their own internal "investigations" in conjunction with a Third Investigations by the Hawaii Legislature members with their Union supported employees!

This again, is the same as a California PYRO MANIAC investigating his own blazing Wild Fire, while creating numerous distracted small fires around the BIG MAIN BON-FIRE, to attention away from his malicious and well calculated deeds!

The gas can {State of Hawaii DLNR Public Forgery Document Executive Order 3117 with a false Public misleading Official GAO Survey Map} with the match {The original suppressed DLNR Legal Access documents} and the remaining evidence with charred ruins {The Hawaiian Airline Pilot's family Bankruptcy proceedings implicating the KSBE and U.S. Trustees mishandling and suppressing the FRAUD} is all their for the "Investigators" conducted by the same Hawaii Buzzards and Vultures linked to the BROKEN TRUST Hawaii Legislature members, again, conducting their own Public Relation separate "investigations" for their Union memberships obtaining bribery gifts and favors {Oriental customs?}; The Hawaii State Ethics Director, linked to the Bamboo network Hawaii Judiciary system Huis with their own separate Public Relation damage control "investigations" to nowhere under the Hawaii AG's Office....promoting a Sovereign Hawaiian Bill, based on Illegal Political Constructive Fraud in Washington {1993 Simple Federal Apology Resolution to Hawaii by Senators Daniel Inouye and Akaka} while ignoring blatant Public Fraud and Political Corruption with OBSTRUCTION OF JUSTICE with HUGE CONFLICTS OF INTERESTS for: "SOCIAL EQUALITY AND POLITICAL JUSTICE FOR ALL" in Washington......

DOESN'T GET MUCH BETTER THAN THIS while Congress protects their own vested interests under the Political Department of Injustice cabals while helping spread American Democracy and American Values in the controversial Middle East and around the World!

Some interesting bit of side notes involving Ms. Susan Oki and her father....a former member of the famed 442 U.S. Military Regiment: My father, a former World War 11 Combat photographer in the South Pacific theatre, was married to a local Japanese during the War. He was a distant Political acquaintance and supporter for Jack Burns in Kailua, Oahu. They both belonged to the Kailua Lions Club and were both members of the private Lanikai Mid-Pacific Country Club....mostly all haole members after the War years.

My father was involved in a very fraudulent Hawaii land purchase and sale during the 1950s involving a corrupt Hawaii land surveyor and a fellow Irishman linked to the Hawaii Judges family members. After he relocated to San Francisco in the early 1960s, he retained a Hawaii attorney whom I believe was none other than Echi Oki.....from Honolulu, linked to the famed 442 Hawaii Military Brigade members whom he always supported due to the persecution of the local Hawaii Japanese community after Pearl Harbor.

Echi Oki, again, had close political links vis-a-vis their Military Service to Dan Inouye and their tight knit Hawaii 442 hui cabals.....prior and after the 1954 Hawaii Legislature Revolution. My father lost the Court case, despite the SELLER testifying in favor of my fathers allegations...... with huge conflicts of interests since the Judge was related to the Hawaii Judge {Taveras}.

Another side Note with the Airline Industry: I was personally involved with the earlier Bankruptcy proceedings with Frontier Airlines in Denver {1986} which later involved Drexel Burnham Wall Street investors linked to Frank Lorenzo and Carl Ichan in New York. Like Mr. Rodney Stich, the FAA investigator making allegations against United Airlines in Denver, I was singled out with several others for exposing blatant FAA rules and blatant Public Safety violations involving massive fraud and corruption benefiting short-cutting - Airline cost saving procedures...comprising massive Public Safety cover-ups and FAA regulatory with damage control omitted issues involving the new non-unionized, young and ignorant work force.

This all began with the across the board firings for the FAA Air Traffic Controllers soon after the Reagan - Bush Sr Tenure came into Office in 1981. The massive Airline De-regulations in Washington vis-a-vis Wall Stree profiteers, {i.e. - Michael Milken, Marc Rich, Ivan Boesky} during the roaring unregulated 1980s which became famous with the Movies: WALL STREET {Michael Douglas} and "BARBARIANS AT THE GATE".

AIPAC'S Norman Brownstein, based in Downtown Denver, vis-a-vis my former Brownstein political mole "girlfriend" , New York attorney Lisa Holstein, was responsible for helping Lorenzo with the Texas Continental Airline gang members to get out of their Prime gate and exclusive lounge commitments, including a faulty Automated Baggage system, involving more massive fraud and cover-ups at the new Denver International Airport were allowed to quietly relocate back to their Houston based "Texas Air Corp" headquarters.

In 1993, Clinton denied Frank Lorenzo, with his New York Attorney wife with Chase Manhattan Bank, as well as their Texas Air Corps - Colorado Resort land investors in Aspen & Vail {Phillip Winn Group}, to continue manipulating the SEC within the confines of the "insiders" under the lucrative "De-Regulated Airline Industry" mergers using Union Pension plans for lucrative leveraged acquisitions....compromising Public Safety and FAA violations with massive cover-ups in Washington.

Again, like former FAA investigator, Rodney Stich, doing his job, I became another Politcial liability, which is the former "inside" Dept of Justice / CIA lawyer, Norman Phillip Brownstein's expertise specialized job as Mr. Fix It at DIA; Protecting SEC Billionaire Fugitive's such as Marc Rich and HUD Director Phil Winn, while sheltering Drug Traffic cabals with Florida's Jack Devoe...for helping AIPAC's Political "cause" in Washington DC into vested SECURITY interests in the secular Middle East.....of course....always using OPM: The defrauded & obliviouos American Public Tax Payers left holding the bag on Wall Street to Main Street.

Brownstein's young, former single AIPAC New York mole attorney, Ms. Lisa Holstein, like others linked to AIPAC and David Steiner, as well as former CIA - U.S. federal prosecutor - Hawaii Public Safety Director, John Peyton, are reported deceased in New York and remote Africa?

The Rocky Mountain High - SILVERADO DNC Political Convention in Denver, Colorado, moving the Public cost over-run to a larger media exposure event with INVESCO Stadium {Bronco Pro Football Stadium...who are clients of NORM BROWNSTEIN, JACK HYATT, AND STEVE FARBER, now joined by former GOP Denver University CABALS - former Colorado RNC Chairman, Commercial Real Estate Investor and Resigned Department of Veterans Affair Director - James "De Oppressor Libre" Nicholson, linked to former Colorado RNC Chair, for convicted Swiss Ambassador - HUD Director - Phil Winn {DU Professor} with former DU Secretary of Interior Gale {CREA} Norton, as well as the latest new GOP University of Colorado connections to former U.S. Senator / UC President Hank Brown....involved in the "E Pluribus Unum" Wall Street article related to: THE 1993 Simple FEDERAL APOLOGY RESOLUTION TO HAWAII under Clinton with Political Constructive FRAUD and Public cover-up intents for the future Public subsidized AKAKA BILL in Congress....pending in Washington since 2000, after the U.S. Supreme Court decision over ruling the Hawaii Political Judicial system hidden under the Political Ninth District Circuit Court of Appeals, involving 'RICE V. CAYETANO' {Office of Hawaiian Affairs}.

NEW DISCOVERY (05-10-08): David Farmer’s undisclosed connections with AIPAC and “Bush’s Brain”, Karl Rove:

Subject: Check out The Raw Story | Official probing Rove now under investigation himself

To: sf.nancy@mail.house.gov, senator@akaka.senate.gov, ustrustee.program@usdoj.gov, admin@ehawaii.gov, jurisnot@yahoo.com, bobby_n_harmon@yahoo.com, hwburgess@hawaii.rr.com, Ken_Conklin@yahoo.com, rroth@hawaii.edu}

"While Rove Fiddled; The Bush was Burning"? or........White men who can't dance?

a} Congressional Defense Appropriation Committee members, previous Bureau of Indian Affair Chairman, Veterans Affair Committees, Intelligence Committees, Special Counsels {Iran - Contra / Central America International Committees} Bishop, Baldwin, REWALD, Dillingham & Wong, for Hawaii U.S. Senator - Daniel Inouye - Defense Chairman linked to: hidden Public Pork Barrel proceeds for the lavish Hokulia Canoe for Hawaiians only programs / Women Abuse Shelters for Two Political Hawaii Legislature members involved in 1992 U.S. Senate race allegations for Sexual Harassment allegations / Private Defense Contractor Brent Wilkes - Hawaii ADSC Company fronts - Lavish Hawaiian Private Vacations - Luxury Private Accommodations - Hawaiian "Entertainment" linked to Asian Pacific Advisory Council Politicians {Prince Hotels} - AIPAC Lobbyist for Akaka Bill; {Dismissed U.S. Attorney - Frederick Black, Political Appointee under former CIA Director / Vice-President / President George H. Bush linked to former U.S. Federal Prosecutors John Peyton - Kenneth Starr in collusion with former Hawaii District Judges {deceased}: Martin Pence, Harold Fong, & California District Judge: Brian Tamahana}.

b} Alaska U.S. Senator - Ted Stevens linked to hidden Public Pork Barrel projects {Bridge To Nowhere} with family member to self serving Alaska Contractors - Home remodeling projects as well as lobbying ANWAR Bill under the Department of Interior {CREA} with members with the Defense Appropriation Committee Political links to members of Congressional Committees {I.E. - Veterans Committee Chairman - Daniel Akaka, sponsor for the stealth Akaka Bill with no Public voice or vote in Hawaii, Obstruction of Justice in the South Pacific {Jack Abramoff - Tom Delay} and the Broken Trust legacy in Hawaii, in political exchanges for continued political support for a Case of War in Iraq and the ANWAR Bill.

c} California Congressman - Duke "Dukestar" Cunningham: Defense Appropriation Committee member - Veterans Affair Committees linked to lavish Political briberies with Private Defense Contractors and CIA agents linked to Iraq War Appropriations in Washington DC, Southern California, and Hawaii lavish vacations - "Entertainment" with obstruction of justice linked to political Dismissed U.S. Attorney Carole Lam, linked to Political dismissed U.S. Attorney Frederick Black in the South Pacific involving Jack Abramoff {AIPAC} linked to Grover Norquist and Tom Delay {CNP - PNAC}.

NEW DISCOVERY (05-06-08): A review of Robert Kihune’s Deposition in EQ2048, taken on December 3, 1999, reveals many questionable relationships with other entities and witnesses involved in the instant case, including:

During his deposition, Trustee Kihune was questioned about several issues which were also involved in Bishop Estate’s lawsuit against me (Civil No. 97-0512-02), in my RICO lawsuit, and in the instant case, including Milton Holt’s misuse of the Estate’s credit cards; the possible loss of Kamehameha Schools’ tax-exempt status; Robert Kihune’s relationships with Trex Enterprises, etc.

Note: The shutting down of the website www.the-catbird-seat.net by Order of Judge David Ezra, which contained many of these Exhibits, is considered by Defendant to be another example of bias, conflicts-of-interest, and destruction of evidence. (see: www.kycbs.net )

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:

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

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.

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.

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.

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)."

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."

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?

TWO PROMINENT HAWAII LEADERS WILL
HELP GUIDE HIGH-TECH COMPANY

JEFFREY WATANABE AND LARRY JOHNSON ELECTED
TO THE TREX ENTERPRISES BOARD

“Jeff Watanabe and Larry Johnson are extraordinary business leaders,” said Kenneth Y. Tang, Chairman and CEO of Trex Enterprises Corp. “We believe their expertise will help guide the direction of Trex.”

“We have two corporate powerhouses joining us to complement our team of visionaries and the opportunity to make a difference for the future is unlimited!” Said Admiral Thomas B. Fargo, USN (Ret.), Chairman of two of Trex’s subsidiaries, Loea Corporation and Sago Systems Inc. Admiral Fargo, Former Commander of the Pacific Command, joined Trex full-time following his Change of Command in February.

The Trex shareholders elected Watanabe and Johnson during its May 27^th annual meeting. Other members of the Trex Board include VADM Robert Kihune USN (Ret.) and Richard Black. Since 2002, Watanabe has served as a Director of the Board for Loea Corporation.

“I am continuously impressed with the technology, leadership, and vision of Trex Enterprises and I am honored to be appointed to its board,” said Jeffrey Watanabe. “Ken has assembled an incredible team creating state-of-the-art products ranging from high-speed communications to novel airport security systems.”

“Trex Enterprises is a fascinating company and I look forward to using my background and experiences to move the company forward,” said Larry Johnson. “Sophisticated technology, like Trex is creating and deploying, is instrumental to our military, our nation, and our future.”

Trex Enterprises is a high-tech incubator conducting research and development leading to state-of-the-art commercial and government solutions. Trex is headquartered in San Diego, California with offices in Hawaii (Honolulu, Maui, Kauai), Massachusetts, Washington DC and New Mexico. For information log on @ trexenterprises.com or loeacom.com

The Board of Trustees of Kamehameha Schools today celebrated federal Judge Alan Kay's ruling upholding the Schools' 116-year old policy of offering admissions preference to applicants of Hawaiian ancestry.

"This is an incredible day for Kamehameha Schools," said board chair Constance Lau. "We are ecstatic that what Hawaiians have always felt was right, what we have always felt was pono, has been upheld today in a court of law."

In upholding the preference policy, Judge Kay noted Princess Pauahi's intent as expressed in 1887 by her husband, Charles Reed Bishop, that her schools educate Hawaiian children first. He also agreed that Hawaiians continue to suffer educational and societal imbalances as a result of historical wrongs.

Kay stressed that Kamehameha Schools is a private institution, and said that in its 1993 Apology Resolution, the U.S. Congress determined that the imbalances resulted in part from the overthrow of the Hawaiian monarchy in 1893.

Trustee Douglas Ing noted, "Judge Kay's ruling is important because it recognizes Kamehameha Schools' role in improving the capability and well-being of Hawaiians through education. We understand today's ruling will be appealed and that we face another legal battle in Judge Ezra's courtroom tomorrow, however, we are hopeful that the U.S. judicial system will recognize the importance of Kamehameha to the Hawaiian community and the entire state."

"Kamehameha Schools is a symbol of hope for the Hawaiian community and this ruling is a restoration of that hope," said Trustee Nainoa Thompson. "Today's judgement is one that will further unite the Hawaiian people and all those who care about Hawai`i."

Trustee Diane Plotts expressed gratitude for the overwhelming public support shown over the last few months. "The displays of support from the entire community -- from emails to petition signatures to participation in unity marches and celebrations of Hawaiian culture -- have encouraged us tremendously."

Kamehameha Schools supporters celebrated Judge Kay's ruling with KS trustees by chanting and singing the school song.

Along with his fellow trustees, Admiral Robert Kihune thanked those gathered at court for their unwavering and dedicated support. "I can imagine our beloved Pauahi smiling down on all of us today."

Connections with Marsh & McLennan/Goldman Sachs/Rubin/Paulson, Paul Alliare, Lucent Technologies, etc.