Woo vs. Harmon - Witness Dee Jay Mailer

David C. Farmer, Successor-Trustee vs. Harmon

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

U.S. District Court For the District of Hawaii

—

DEFENDANT’S WITNESS

DEE JAY MAILER

CEO, Kamehameha Schools; Director, First Hawaiian Bank; former CEO of Kaiser Permanente Hawaii; former Chief Administrative and Operations Officer of Health Net, Inc.; and former Chief Operating Officer of The Global Fund.

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

Officers of Kamehameha Schools

Dee Jay Mailer

Dee Jay Mailer’s professional experience has spanned the globe, but her work has always been focused on helping others. Named Chief Executive Officer effective on January 19, 2004, she now focuses her energies on educating children of Hawaiian ancestry, through the Kamehameha Schools, from which she graduated in 1970.

As the former Chief Operating Officer of The Global Fund, a private Swiss foundation created by the world’s top developed countries, Mailer, along with the Geneva based team, raised and distributed funds to support the fight against AIDS, tuberculosis and malaria in developing countries. She created and managed the fund’s administrative operations in collaboration with international partners, including the World Bank and World Health Organization. During her tenure, some $3.4 billion was raised from international donors, $33 million of which was disbursed in grant funds to 92 countries.

Mailer’s healthcare career spans 27 years, and includes serving as Chief Executive Officer of Kaiser Permanente Hawai‘i where she implemented a service-oriented culture, which improved health plan member satisfaction and retention rates to the highest levels in the State and within the national Kaiser program.

She left Kaiser in 1999 to become Chief Administrative and Operating Officer of Health Net, Inc., a health insurance program serving 2 million members in the State of California. Mailer later served as Senior Vice President of National Contracting and Claims Best Practices for the company.

Mailer earned her Bachelor of Science degree in Nursing and her Masters in Business Administration (MBA) from the University of Hawai‘i at Manoa. She is also a graduate of the Kaiser Permanente Executive Program, a business program for national healthcare executives offered in partnership with Stanford University.

Her past community contributions include being a board member and chairman elect of the Hawai`i Business Roundtable, chairman of the board of the Institute for Human Services Homeless Shelter.

She is also a member of several other boards, including the Pacific Research Institute, the Hawai`i Community Foundation, Aloha United Way, and the Junior Achievement School Mentoring Program....

www.ksbe.edu/about/chiefs/ceo.php

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NEW DISCOVERY (09-08-08):

September 26, 2000

Untold Tales of the West

by Greg Wongham

There’s a story unfolding throughout the western part of America (Utah, Nevada, California, Nevada, Washington, Oregon, and Idaho) that is not being told and unlike the great sagas of pioneering men and women that founded of the country, this story of the West is being hushed up and here's the reason why.

This story is about the banking company, Bank of the West, and the bank holding company that controls it, BancWest. BancWest was created when Hawaii’s second largest bank, 1^st Hawaiian Bank merged with Bank of the West, which is controlled by the French banking firm BanqueWest.

This consolidation of capital between European, Hawaii and the California based Bank of the West has created the 2nd largest bank in Utah. They will have 118 branches in Northern and Central California, 30 branches in Oregon, 9 branches in Washington, 68 branches in Utah and Idaho and 23 branches in New Mexico and 7 in Las Vegas, Nevada.

The public should be concerned about these mega changes in the banking system because of the similarities they bare to the changes in the banking system that caused the failure of the thrift banks throughout the country in the ‘80s. The failure of the thrifts amounted to $ 328 billion of losses and in 1989, the closing of the Federal Savings and Loan Insurance Company (FSLIC). If the Federal Deposit Insurance Company (FDIC) falls victim to the myriad of unforeseen banking problems that arose in the ‘80s, then a crisis exist that threatens the principles of the FDIC and exposes the ordinary citizen to financial ruin.

The politically connected role of 1st Hawaiian Bank is integrally linked to Washington and Wall Street. It existed during the tenure of former Secretary of the Treasury, William Simon, who served during the Reagan Administration (1970-1979), and through the tenure of former Secretary of the Treasury Robert Rubin, who served during the Clinton Administration (1993-1999), until he resigned in May of 1999. 1st Hawaiian’s CEO, Walter Dodds and former Governor John Waihee, as well as, Hawaii’s present Governor Ben Cayetano were listed as guest who were slept overnight and met with President Clinton at the White house. The mere fact that these people are acquainted is no crime, so, what's the problem?

The problems are based on loan losses that may have been carried on the books of 1st Hawaiian Bank since 1975, when Hawaii’s first thrift bank failed. 1st Hawaiian took over the ailing thrift at the behest of then (D)Governor George Ariyoshi, who was also one of the bank’s directors. From 1975 to 1983, nine of Hawaii’s 20 thrift banks, as well as, Hawaii’s equivalent of the FSLIC, Thrift Guaranty, failed. Hawaii’s Thrift Guaranty was established by the State legislature and contained provisions that mandated that the monies contributed into Thrift Guaranty would come from the 20 State chartered banks.

The monies would be used to insure depositors accounts up to $10,000 per account. In 1985, 1st Hawaiian Bank’s CEO, Walter Dodds was reported to have come to the rescue of the State’s thrifts by loaning the State $32 million, which would eventually be repaid by the taxpayers of Hawaii.

A run on the Hawaii banks ensued, based on the outcry from the public surrounding rumors of insider deals and political corruption linking the Governor and his brother James Ariyoshi. Hawaii’s Democratic Party machine appointed Ms Donna Tanoue as the Hawaii Bank Examiner after he was made the scapegoat for stalling and not taking action sooner. Ms. Tanoue white-washed the situation; and, in the end; no one was held accountable and no one did time. Reports suggested that the Governor had intervened on behalf of his good friend and long time political supporter, developer Norman Inaba. This was similar to the classic question that arose across the country as one thrift after another failed, it ask, “what are the risks when a bank loans the majority of its money to one developer?”

The loan losses that have been carried on the books of 1st Hawaiian as “goodwill” assets came back to haunt the bank in 1998, as the bank attempted to expand and buy-out other banks. The Federal Deposit Insurance Company (FDIC) standards required banks to set aside cash reserves to cover both old and new loan losses. The bank realized that this might present problems for them and their future plans to expand. That’s when the Hawaii Democratic machine was able to influence President Clinton to appoint Ms. Donna Tanoue to the position of Chairman, of the FDIC. Since then, the FDIC has lessened their standards and a record number of banks have failed. The results of which is that the FDIC has lost money.

The greatest threat to the people of California, Utah, Nevada, Washington, Oregon, Idaho, New Mexico, Colorado and the other western states that the Bank of the West will call home, lies in the fact that the FDIC is the agency that decides whether or not, one bank has the financial capacity to buy out another bank. If Ms. Tanoue is allowed to cover-up for her politically connected banker friends as she did before; then the public should beware of the financial losses that may accrue if the bank’s losses rise.

Last week, the Japan Travel Bureau, warned Japanese travelers about going to Saipan because of the rising crime including murders, and increasing drug problems. BancWest has begun operations in Saipan. If tourism suffers because of the social unrest, then business suffers and banks lose money. The question that arose as the savings and loans failed was, what is the risk of banks loaning the majority of their money to one developer? The question that the public should ask is, what are the risk of a bank holding company that seeks to do business in countries that are experiencing social and political instability?

The Clinton / Gore link to the Hawaii bank scandal

Before the politically connected Hawaii banks could fulfill their plans to expand they needed support from the 1993, Democratic Party’s Presidential hopeful, William Jefferson Clinton. They used their connections to Asian financial banking sources and the vast fortune of the Hawaii Democratic Party controlled Hawaiian Trusts like a carrot to lure the cash strapped Clinton. It resulted in Clinton’s appointment of Goldman-Sachs, co-director Robert Rubin as Clinton’s Secretary of the Treasury. Goldman-Sachs was already involved with Hawaii banking deals that included former Secretary Treasurer, William Simon.

In his position as Secretary of the Treasury, Robert Rubin was successful in changing two laws that had been part of the Code of Federal Regulations (CFR) for more than 60-plus years. The first of the laws, the Glass-Steagall Act was implemented after the stock market crash of 1929. Like many of the banking and finance related laws that were passed during this time, the Glass-Steagall Act was meant to protect the public against risk that might jeopardize their money relative to the sales of securities. The law, forbid banks from engaging in the securities business. The government’s newly created securities regulatory agency, the Securities Exchange Commission (SEC) wanted to deny any chance for banks to co-mingle the monies of depositors with the minimum cash required to raise capital through the sale of stocks and bonds. Don’t be surprised if one day, ads appear in your local papers offering high-yield Chinese government bonds (for dams, bridges, highways, airports, and weapons of mass destruction).

The second law that was changed by Rubin in 1997, was the Bank Holding Company Act. He argued that the laws were archaic and were instituted in a time that didn’t reflect the changes that the American banking industry faced in today’s competitive financial world. The modifications to the Bank Holding Company Act would allow America’s banks to broaden the definition of banking services that would be allowed by the government’s financial regulatory agencies.

Thus, Rubin was successful in opening the door for bank holding companies and their affiliates to engage in stock brokerage activities like underwriting and dealing, as well as, other diversified banking and finance related services [including insurance]. The changes that were made by Rubin, and the lessening of the standards by Ms. Tanoue, made it possible for 1st Hawaiian’s holding company, BancWest to enhance their revenue generating potential despite the old loan losses they absorbed to keep their political insiders out of jail after the Hawaii thrifts failed.

One wonders how you’ll be factored into the equation, after all, its only money ... your money.

This page posted on September 26, 2000

Last updated on October 01, 2004

Greater Things/Clinton Scandals/Riadi/First Hawaiian Bank Link

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

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NEW DISCOVERY (08-07-08): Undisclosed financial, professional and personal relationships between Greg Dunn, Dee Jay Mailer, Faye Kurren, Hawaii Dental Services, Hawaii Nature Center, OHA, Judge Robert Faris, others:

From the Hawaii Nature Center website:

Gregory D. Dunn was appointed executive director of the Hawaii Nature Center March 1, 2002. Dunn joins the Hawaii Nature Center after more than three years as executive director of the Atherton Branch of the YMCA of Honolulu. He brings to the Nature Center a strong track record in facility management, fund development, recruitment and project management. Previously he was operations manager for two new retail projects in Hawaii, the Barnes and Noble Superstores of Honolulu and NikeTown Honolulu. He is a member of the boards of Hawaii Dental Service, Inc., the Waikiki Community Center and Youth for Environmental Service. He is a trustee and chairman of the HDS Foundation. "Dunn's experience in the local community and his activities on behalf of youth in a non-profit arena made him a logical choice to lead the Hawaii Nature Center as it embarks on a plan to expand service," said Nature Center Board President, Don Carroll, also chairman of the board of Time-Warner Cable of Hawaii.

www.kycbs.net/Hawaii-Nature-Center.htm

www.kycbs.net/Google-Nature-Center.htm

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NEW DISCOVERY (04-24-08): Undisclosed relationships between John Goemans, Mary Lou Woo, James B. Nicholson, David C. Farmer, Steven Guttman, Judith Neustadter Fuqua, Paul Alston, Judge Lloyd King, Judge Robert Faris, Judge Kevin Chang, Judge David Ezra, Judge Barry Kurren, Judge Elizabeth Eden Hifo, Dee Jay Mailer, Eric Grant, Jim Dooley, and other witnesses; denial of First Amendment and Seventh Amendment Rights to Defendant and his prior attorney, John Goemans:

April 24, 2008

Kamehameha wants $2 million returned

School points to breach in terms of
confidential settlement paid in 2007

By Jim Dooley, Advertiser Staff Writer

Kamehameha Schools is trying to get back as much as $2 million of the $7 million it paid last year to settle a lawsuit that challenged its admissions policy favoring Hawaiian students, according to legal papers filed in federal court in California.

The papers are contained in new litigation filed after publication of an Advertiser news story in February that revealed that the settlement was $7 million.

The money was paid to a Big Island mother and child in return for their agreement to drop the lawsuit just before the U.S. Supreme Court was to decide whether it would hear an appeal of the case.

The plaintiffs, who have never been publicly identified and are known as Jane and John Doe, alleged in the California case that the schools "threatened" to publicly identify them if they did not place $2 million in an escrow account for possible return to the schools because terms of the confidential settlement had been revealed.

Ken Kuniyuki, a Hawai'i lawyer who now represents the pair, is alleging that David Schulmeister, an attorney for the schools, said that if the schools were forced to file suit over the issue, the names of the Does would become public.

Kuniyuki made the allegation in a sworn declaration filed this month in federal court in Sacramento, seeking a court order barring public identification of the plaintiffs.

Schools attorney Paul Alston denied that Schulmeister threatened to reveal the plaintiff's identities.

"Schulmeister told Kuniyuki that the (Kamehameha Schools/ Bishop Estate) believed the settlement agreement had been breached and that the estate was entitled to damages," Alston said in court papers filed April 14 in Sacramento.

"He further explained that a public lawsuit could make it difficult for the Does' anonymity to be preserved" and suggested that the $2 million be held in escrow while the parties discussed resolution of the dispute short of a lawsuit, according to Alston.

Alston stressed on Tuesday that Kamehameha Schools has not filed a lawsuit or taken any action that would publicly identify the Does.

"Kamehameha Schools is closely scrutinizing how to proceed," he said.

Tuesday night and yesterday, the Kamehameha Schools board of trustees and Chief Executive Dee Jay Mailer sent a mass e-mail to parents and alumni notifying them of the new legal skirmishing in California and alerting them that The Advertiser was preparing a story on the subject.

"A breach of confidentiality has occurred, and an investigation into the line of responsibility is in process. Legal action as appropriate shall follow," the trustees' e-mail said.

"It is aggravating to be drawn into this complicated and unsavory infighting," the trustees' message continued. "However, we will not allow this latest legal maneuver to distract us from our mission."

'Fear for our safety'

Jane and John Doe filed legal papers in Sacramento federal court denying any role in the release of the settlement figure by John Goemans, an attorney who used to represent them but who now is involved in a dispute over compensation for his services in the case.

Their attorney, Kuniyuki, also asked the federal court to issue a restraining order against all parties in the case preventing any attempts to disclose the identities of Jane and John Doe.

He attached an April 2 sworn statement from Jane Doe that said, "both John Doe and I fear for our safety if our identities are made public."

She noted that more than 1,550 reader comments were posted on the Advertiser's Web site following the February story that disclosed the settlement amount.

"Many of them are extremely critical of us. Some include threats of violence against us," she said.

"I have lived in Hawai'i for many years. The negative comments and threats posted to the Honolulu Advertiser's February 8, 2008 article are entirely consistent with my experience with many local residents regarding the admissions policy of the Kamehameha Schools."

If their identities become public, she said, "we are prepared to move and go into hiding."

Last week, following a hearing before U.S. District Judge Frank Damrell Jr., all parties in the federal court case stipulated that they would not disclose the true identities of the Does.

Goemans told The Advertiser in February that he believed the settlement amount should be a matter of public record, given Kamehameha Schools' status as the wealthiest and most influential nonprofit institution in Hawai'i.

Attorney's troubles

In a separate civil case now pending in Sacramento state court, Goemans was sentenced earlier this month to serve eight days in jail and fined $4,000 for violating a court order to keep the settlement amount secret.

Goemans, 73, now living in Florida with his sister, said by telephone, "I have zero money, I have serious health issues, and now I've been ordered to serve an eight-day jail sentence in California in the middle of May. I don't know what's going to happen."

The California state case was filed against Goemans by Eric Grant, a Sacramento attorney who litigated the Does' lawsuit from the time it was first filed in Hawai'i in 2003 through its settlement in May 2007.

Under the terms of the settlement agreement, Grant was entitled to 40 percent of the $7 million total, or $2.8 million.

He sued Goemans in Superior Court in Sacramento last year to try to settle the outstanding question of how much Goemans should be compensated.

Goemans conceived the civil rights lawsuit against the schools, found the plaintiffs on the Big Island and brought them together with Grant.

Goemans said the only money he has received was a $20,000 loan from Jane Doe but believes he is entitled to as much as 25 percent of the total settlement, or $1.75 million.

According to documents filed in the California state case, Grant became concerned early this year that Goemans intended to reveal the amount of the legal settlement and on Feb. 5 obtained a court order against Goemans blocking any such disclosures.

Three days later, The Advertiser published a news story based on Goemans' statements about the settlement amount.

Goemans said in a sworn statement filed with the California court March 17 that he is "not medically or mentally 100 percent" and had no memory of being informed of the Feb. 5 court order.

"I want to emphasize to the court that it was not my intent to deliberately and knowingly violate the court's order," the statement said.

But he reiterated his belief that Kamehameha Schools, as a tax-exempt organization, should not and cannot keep the terms of the settlement confidential.

After the settlement terms were made public, Grant filed a new federal lawsuit March 28 in Sacramento against Kamehameha Schools and his own clients, Jane and John Doe, asking the court for a ruling that he was not responsible for the disclosure and has no financial liability because of it.

Grant and an attorney who represents him did not return telephone requests for comment.

Alston filed a lengthy legal memo in the case last week questioning the Sacramento court's jurisdiction in the matter since the Does and the schools are in Hawai'i.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.

www.kycbs.net/KS-Seeks-Recovery-4-24-8.mht

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NEW DISCOVERY (04-15-08):

Connecting the dots...

David Farmer...Steven Guttman...Brian Schatz...Barack Obama...Oprah Winfrey...Hillary Clinton...Linda Lingle...John McCain....AIPAC...Punahou School...Kamehameha Schools...Dee Jay Mailer...The Global Fund...Henry Paulson...George W. Bush...Haunani Apoliona...OHA...Daniel Akaka...Dan Inouye...Suzanne Case...Dan Case...Steve Case...Jeffrey Case...Aon...The Nature Conservancy...Greg Dunn...Judith Neustadter Fuqua...etc...ad infinitum...

http://www.midweek.com/content/paina/image_full/2090/

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NEW DISCOVERY (04-11-08): Trustee James B. Nicholson failed to disclose that he was the court-appointed bankruptcy trustee for Defendant’s witness, Peter Savio, even though he was asked specifically if he had any business, professional, personal or political relationships with Mr. Savio:

August, 2003

Hawaii’s Top 250 Companies:

New To The List: Whoa, Savio!

Hawaiian Island Homes' debut is marked by acrimony

By Kelli Abe Trifonovitch, Hawaii Business Magazine

Any interview that focuses on Peter Savio's new company, Hawaiian Island Homes Ltd., will soon focus on another Top 250 company, Central Pacific Bank. Says Savio: "They're malicious. They're vicious. I am going to become a stockholder in Central Pacific Bank. I am going to reform that institution. Their mistake was they stomped me. They didn't kill me. I'm coming back. I'm going to have fun with them."

Go back to the year 2001. Savio Inc., a holding company for eight real estate sales and development companies, was No. 56 on the Top 250, with $134.6 million in 2000 gross sales. But in 2001, Savio Inc. filed for Chapter 7 liquidation, and Peter Savio and his wife filed for personal bankruptcy protection. Savio says he was forced into the bankruptcies because CPB gave him just five days to move from his second-floor offices at 931 University Ave. Savio says he had been in a workout plan with a number of lenders after he started experiencing cash-flow problems in the mid-1990s. But CPB forced his hand.

"The only way to stop them was, I had to file for personal bankruptcy. So to save my employees and everything else, I filed for personal bankruptcy - one of the most difficult decisions I've ever had to make. But I was really pissed at Central Pacific Bank for doing that," he says.

"It was tough," he adds. "Basically I lost everything. Lost my house. Lost everything. Had to basically come back from nothing."

Today, Savio is more than back. His real estate company, Hawaiian Island Homes Ltd., lists 2002 gross sales of $177 million. Its office is downstairs in the same building that Savio Inc.'s once was. And the company is No. 27, ahead of CPB Inc. (No. 49), something Savio will rejoice to read. Savio says, "I've decided that my goal is to beat them in the Top 250. … just so we can say, 'Nannynannybooboo!'"

That's not all. "My short-term and my long-term goal is to reform Central Pacific Bank," Savio says. "I think I'm going to buy the bank."

Ann Takiguchi, Central Pacific Financial's communications officer, says, "We made every effort to work with Mr. Savio, and it is unfortunate that he is blaming us for his situation. Out of respect for our customers' privacy, we have no further comment. As a matter of bank policy, we don't comment on the affairs of our customers."

Bankruptcy court filings show that Central Pacific Bank claimed that Savio Inc. owed it about $1.5 million when Savio filed for bankruptcy in 2001. The Internal Revenue Service and Pitney Bowes Credit Corp. also listed claims of about $2,000 each.

The court-appointed trustee for Savio Inc.'s bankruptcy case, attorney Jim Nicholson, says the only unencumbered asset of the estate, a unit in the Diamond Head Beach apartment building, was sold for $375,000 in June 2003.

Gross sales for Savio's other new company, Hawaiian Island Development, were not reported for this year's Top 250, so one thing is for sure: Next year, he'll be back. Says Savio: "We're going to set up a new holding company called, 'I Hate CPB.' No, my attorney said I couldn't do that. I have a warped sense of humor, OK? But anyway, the new holding company is going to be Ohia Holdings."

Knowing Savio, there is marked symbolism in that choice. After all, the Ohia tree can be found growing in the middle of old lava flows.

Hawaii Business, August, 2003

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NEW DISCOVERY (04/09/08): Undisclosed connections between First Hawaiian Bank, Dee Jay Mailer, Faye Kurren and, therefore, Judge Barry Kurren:

May 18, 2005

FIRST HAWAIIAN BANK ANNOUNCES ELECTION OF
HIAM, KURREN, MAILER AS DIRECTORS

First Hawaiian Bank today announced the election of three new members to its Board of Directors. They are:

Robert P. Hiam, President & Chief Executive Officer of Hawaii Medical Service Association (HMSA);

Faye Watanabe Kurren, President of Hawaii Dental Services; and

Dee Jay Mailer, Chief Executive Officer of Kamehameha Schools.

“First Hawaiian is fortunate that these three talented executives, all of whom have deep roots in Hawai‘i, have agreed to serve,” said First Hawaiian Chief Executive Officer Don Horner. “They add a wealth of experience to our Board.”

Hiam has been President and Chief Executive Officer of HMSA, Hawaii’s largest health care plan, since 1995. He has been with HMSA since 1970, previously serving as Chief Financial Officer and head of Government Programs and Data Processing.

Hiam attended Pacific Lutheran University in Washington and graduated from the University of Hawai‘i at Manoa. He is Chairman of the Board of Aloha United Way, Pacific Health Research Institute and the HMSA Foundation and also serves on numerous boards of directors for the health care industry and on many nonprofit boards in the Islands.

Kurren was named President and Chief Executive Officer of Hawaii Dental Service, the largest provider of dental benefits in the state, in 2003. Previously, she served as President of Tesoro Hawaii Corp. from 1998 to 2003, overseeing its refining, distribution and retail operations for the mid-Pacific region. Kurren originally joined Pacific Resources, Inc. (PRI) as legal counsel in 1984. PRI later became BHP Hawaii and then Tesoro.

A graduate of Punahou School, Kurren holds a law degree from the University of Hawai‘i at Manoa; a master’s from the University of Chicago; and a bachelor’s degree from Stanford University. She is the chair of the Hawai‘i State Commission on the Status of Women and serves on numerous corporate and nonprofit boards of directors.

Before becoming Kamehameha CEO last year, Mailer had a 27-year career in health care, including serving as Chief Executive Officer of Kaiser Permanente Hawai‘i. She later served as Chief Administrative and Operating Officer of Health Net, Inc., a California health insurance program, and as Chief Operating Officer and Executive Director of The Global Fund, a Swiss foundation that supports health programs in developing countries.

Mailer, a graduate of Kamehameha, earned a degree in nursing and an MBA from the University of Hawai‘i at Manoa. She has been active in the Hawai`i Business Roundtable and in several nonprofit boards of directors.

About First Hawaiian Bank

First Hawaiian Bank ($10.8 billion assets) was founded in 1858 and is Hawaii's oldest and largest bank. It has 56 branches in Hawaii, three on Guam and two on Saipan.

http://www.firsthawaiianbank.com/hm_news051805.htm

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December 10, 2003

Kamehameha has
new CEO

The schools' new hire wins
praise for her leadership and
her background in health

By Craig Gima, Star-Bulletin

Kamehameha Schools' new chief executive officer was hired for her leadership and healing qualities as well as her understanding of the $6 billion dollar trust's mission, trustees said yesterday.

Dee Jay Mailer is a 1970 Kamehameha graduate and former CEO of Kaiser Permanente Hawaii who started her career as a nurse at Kapiolani and Kaiser Medical Centers. Her two daughters also graduated from Kamehameha.

"We have been through some difficult times," trustee J. Douglas Ing said. "We see Dee Jay as bringing stability to our organization."

Ing said he hopes Mailer's hiring will bring "closure to years of controversy and crisis."

Just last week the school settled a lawsuit and allowed a non-Hawaiian seventh-grader to continue to attend Kamehameha. Another lawsuit challenging the schools native Hawaiian preference admissions policy is likely to be appealed to the 9th Circuit.

In May, former CEO Hamilton McCubbin resigned after the school conducted two investigations into allegations that McCubbin had an inappropriate relationship with a female staffer. McCubbin has denied the allegations.

McCubbin's appointment in January 2000 as the school's first CEO was hailed as a major milestone in the controversy surrounding the removal of former Bishop Estate trustees Henry Peters, Richard "Dickie" Wong, Lokelani Lindsey, Oswald Stender and Gerard Jervis.

Mailer was not at the press conference yesterday. She is finishing work at her current job as chief operating officer of The Global Fund, a public-private multibillion-dollar trust based in Geneva, Switzerland, that raises and distributes money to fight AIDS, tuberculosis, and malaria.

She starts at Kamehameha Schools on Jan. 19.

The Kamehameha Schools is the state's largest private landowner and one of the nation's wealthiest charities. The will of Princess Bernice Pauahi Bishop created the nonprofit trust in 1884. Kamehameha and its programs spent more than $222 million last year to provide educational services to about 16,000 children, mostly of native Hawaiian ancestry.

In a written statement, Mailer cited a desire to give back to Hawaii as a reason for taking the CEO position.

"It's been a dream for me to find a fitting way to return home to my Kamehameha family," Mailer said.

"Pauahi was loving and wise," she said. "And we must now protect her gift and focus on educating Hawaiian children. And once Hawaiian children receive this gift, they must -- and will -- repay it by helping others.