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

THE UNITED STATES DEPARTMENT OF JUSTICE

OFFICE OF THE U.S. TRUSTEE

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

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

CV05-00030 DAE/KSC

United States District Court, District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

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DEFENDANT’S WITNESS

CARY OKAWA, CPA

Address to be determined.

Former employee of PricewaterhouseCoopers, LLP. (Formerly Coopers & Lybrand), Independent CPA’s for P&C Insurance Company, Inc.; former Controller at Advanced Medical Optics, Inc. and Senior Accounting Manager at Tektronix, Inc.; currently, Corporate Controller at Ceradyne, Inc.

Cary Okawa is expected to testify regarding the facts, circumstances and consequences of the following letter:

P&C INSURANCE COMPANY, INC.

P.O. Box 38

Honolulu, HI 96810

November 20, 1996

Mr. Cary M. Okawa, C.P.A.
Coopers & Lybrand L.L.P.
2500 Pacific Tower
1001 Bishop Street
Honolulu, Hawaii 96813-3668

SUBJECT: P&C Insurance Company, Inc. - Annual Financial Report

Dear Mr. Okawa:

This is to provide further information regarding issues discussed in my meeting with you and Mr. Dennis Tsuhako in my office on October 18, 1996, regarding P&C Insurance Company’s (P&C) annual financial report.

As you will recall, we discussed my concerns with respect to “arms-length” issues between Kamehameha Schools Bishop Estate (KSBE) and P&C, as they related to what I believed were efforts to direct and control the operations of P&C by my superior, Nathan Aipa, Esq., by Louanne Kam, Esq. and by Henry H. Peters, who is a Trustee of Bishop Estate, as well as Chairman of the Board of Directors for P&C.

As examples, we discussed the blocking of my efforts to have P&C write the blanket property insurance program with reinsurance provided through the Hobbs Group, rather than by Marsh & McLennan, Inc. Also, I commented on what I considered to be excessive fees being charged by Marsh & McLennan, Inc. (MMI), and their failure to provide a satisfactory explanation for the services included in their flat fee of $200,000.

Finally, I related to you and Mr. Tsuhako my concerns regarding attempts being made by individuals at KSBE to direct and control the settlement of P&C’s claims. In addition to the example we discussed, I have recently received a copy of the attached memo from Rocco Sansone dated 11/7/96, regarding a proposed “Consent to Settle (P&C Insurance)” endorsement.

This memo addressed to Louanne Kam, Kamehameha Schools Bishop Estate, states: “The following proposed endorsement is submitted per our discussions and negotiations with Am-Re. This endorsement provides KSBE with the option of controlling the settlement process subject to the indicated agreements. Based on our discussions, we recommend KSBE accept the proposed wording. Please advise if there are any questions and with your approval to add the endorsement.”

This “Consent to Settle Clause” would, in effect, take the control of claims settlements away from P&C’s independent adjuster and turn it over to KSBE. P&C and KSBE would also be exposed to uninsured and unlimited payments of claims due to the condition, “If, however, the Insured shall refuse to consent to any settlement recommended by the Company and acceptable to the claimant and shall elect to contest or continue any proceedings in connection with such claim, the Company’s liability for the claim shall not exceed the amount for which the claim could have been settled plus expenses up to the date of such refusal.”

This recommendation by MMI is, in my opinion, highly unusual and one which could result in significant financial loss to P&C and KSBE. The enclosed documents (some written before our meeting and others afterwards) will provide further examples of what I consider to be improper and deceptive business practices by Marsh & McLennan, Inc. and M&M Insurance Management Services, Inc.

It is due to the fact that these issues have not been resolved, that I am declining to sign my concurrence to P&C’s Annual Financial Report for the fiscal year 1995-96.

Thank you very much for your understanding and concern.

Very truly yours,

Bobby N. Harmon, CPCU, ARM, AAI
President

enclosures

cc: Insurance Commissioner, State of Hawaii (w/encls)

www.kycbs.net/PC-Coopers-Lybrand-11-20-96.htm

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E-mail

Subject: Body Armor

Hi Lisa,

AHNC asked whether the troops need body armor or not. I wondered, "What is Ceradyne Inc. and why is the contract sole-sourced to them? Do they have no competitors? Was there no bidding?" Maybe we should "follow the money," as they say.

So I turned to the Ceradyne website, http://phx.corporate-ir.net/phoenix.zhtml?c=97537&p=irol-governance , to see who might be on their board. Lo and behold, there was one Milton L. Lohr, whose official Ceradyne bio appears below:

Milton L. Lohr

Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee (Chairman)

Mr. Lohr served on our board of directors from 1986 until early 1988, when he resigned to accept a position as Deputy Undersecretary of Defense for Acquisitions. He held that position until May 1989 and was re-elected to our board of directors in July 1989, and has served on our Board of Directors since July 1989.

“Mr. Lohr is currently a partner of L. F. Global Investments, LLC, a San Diego based financial firm with activities in money management funds, venture capital and asset management companies. He served as the first Deputy Under Secretary for Acquisitions in both the Reagan and Bush administrations, with responsibility to assist in overseeing the Department of Defense's major acquisition programs as well as exercising oversight of international programs and U.S. Arms Control Compliance activities.

“He also served as U.S. Acquisition Representative to the NATO Conference of National Armament Directors and provided leadership guiding U.S. armament cooperative programs, and in developing and establishing policy initiatives aimed at promoting cooperation on major weapon systems and technology among the NATO Allies.

“He also served on the Four Power Group with members from the U.K., France, Germany and the United States. Mr. Lohr previously held the position of President of Defense Development Corporation, a defense-related research and development company from 1990 to 1993. Mr. Lohr also held the position of Senior Vice President of Titan Systems, a defense-related research and development company, from 1986 to 1988, and was founder and CEO of Defense Research Corporation, a defense consulting firm, from 1983 to 1986.

“Mr. Lohr served from 1969 to 1983 as Executive Vice-President of Flight Systems, Inc., a firm engaged in aerospace and electronic warfare systems. Mr. Lohr has over thirty-five years experience in government positions and aerospace and defense management. He served as a panel member on the President's Science Advisory Committee (2 years), a member of the Defense Science Board (15 years) and a member of the Army Science Board (8 years), as well as other ad hoc government related assignments. Mr. Lohr obtained a B.S. degree in Engineering from USC in 1949, and a M.S. degree from UCLA in 1964.”

A former Deputy Undersecretary of Defense for Acquisitions in the Reagan and Bush-I administrations? He's probably an old pal of Rumsfeld's or of Poppy Bush himself. I would never suggest any impropriety in defense acquisitions by the current administration, but I do have to wonder why only Ceradyne in the world can meet DOD specs for this body armor.

The question of whether the troops needed the armor is a good one, of course, but the question of why it was sole-sourced to Ceradyne deserves an answer too. A $70 MM exclusive from Uncle Sam isn't going to do ol' Milton's stock options any harm....

Rick

Thanks Rick.

This doesn't look like another B.O.O.B. move. Mr. Lohr also gave $2000 to Bush in 2003.

http://www.allhatnocattle.net/1-25-06_osama_bush.htm

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NEW DISCOVERY (05-28-09):More undisclosed conflicts of interest between Cary Okawa, Dan Inouye, Daniel Akaka, Neil Abercrombie, Robert Kihune, Admiral Thomas Fargo, Admiral William Crowe, Ceradyne, LF Global Investments, Titan Systems, Donald Rumsfeld, Dick Cheney, Norman Mineta, Bill Clinton, Hillary Clinton, Barack Obama, George W. Bush, etc.:

CV05-00030 - Farmer vs Harmon - New Exhibit: "SEC Files Emergency Action to Halt Alleged Ongoing Multi-Million Dollar Securities Fraud Naming Global Money Management, L.P., LF Global Investments, LLC, and Marvis Friedman" & Witness: Cary Okawa

Thursday, May 28, 2009 4:33 PM

From:

Bobby N. Harmon, CPCU

To:

"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>, "Charles Goodwin" <HONOLULU@FBI.GOV>, "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>

Cc:

"ACLU Hawaii" <office@acluhawaii.org>, "All Representatives" <reps@Capitol.hawaii.gov>, "All Senators" <sens@Capitol.hawaii.gov>, "Andrew Walden" <hfpeditor@email.com>, "Aon Insurance Managers" <mike_coulter@agl.aon.com>, "Arthur Rath" <imua@spamarrest.com>, "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>, "John Goemans" <wip@kamuela.com>, "Judson Witham" <jurisnot2@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>, "Don Michak" <dmichak@journalinquirer.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>, "Malia Zimmerman" <Malia@hawaiireporter.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>, "V K Durham" <vkdtdht@pionet.net>, "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>, "Heather Vsn Doren" <heather.vandoran@yahoo.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>

http://www.sec.gov/divisions/enforce/claims/globalmoney.htm

* * * * *

May 28, 2009

Dear President Obama, Attorney General Holder, Trustee Farmer, Mr. Guttman, Ms. Neustadter, and All Concerned:

Due to the discovery of NEW FACTS, I am adding the subject Exhibit as it relates to this lawsuit which violates my Constitutional Rights of Free Speech and a Fair Trial, and Federal and Hawaii Anti-SLAPP statutes.

You will find related information on-line at:

http://www.kycbs.net/CV05-00030-Witness-Okawa-Cary.htm

In view of all the facts that I have presented in this and hundreds of other Exhibits and witness descriptions, it is beyond comprehension that former Attorney General Alberto Gonzales; Assistant U.S. Trustees Curtis Ching, Gayle Lau and Carol Muranaka; Judges Eden Hifo (fka Bambi Weil), Kevin Chang, David Ezra, Barry Kurren, Lloyd King and Robert Faris; Trustees Mary Lou Woo, James Nicholson and David C. Farmer; American Arbitration Association arbitrator Judith Neustadter Fuqua, attorney Steven Guttman, and others, can still claim that they were non-conflicted, fair, impartial, and unbiased in this case.

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 a settlement, then I ask that you perform your mandated review of this new Exhibit in accordance with Judge Ezra's Order, and advise me if you find it contains any so-called "protected subject matter", and whether or not you intend to OBJECT to my filing a Motion to reopen this case.

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/Confessions.htm

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

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

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

http://voy.com/129276/

http://whistlersongs.blogspot.com

http://www.zoominfo.com/Search/ReferencesView.aspx?PersonID=912950374

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UPDATE (09-07-08):

EARL I. ANZAI
Attorney General of Hawaii

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

Attorneys for the Beneficiaries

IN THE CIRCUIT COURT OF THE FIRST CIRCUIT

STATE OF HAWAII

In the Matter of the Estate

BERNICE P. BISHOP,

Deceased.

EQUITY NO. 2048 KSCC

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REPORT OF ATTORNEY GENERAL CONCERNING MAY 7, 1999 ORDER

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

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

DATED: Honolulu, Hawaii, May 5, 2000

Respectfully submitted,

<s> DOROTHY SELLERS
Deputy Attorney General

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DECLARATION OF DOROTHY SELLERS

DOROTHY SELLERS hereby states:

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

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

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

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

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

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

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

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

DATED: Honolulu, Hawaii, May 5, 2000

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

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

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

www.kycbs.net/KSBE-INTERROGATORIES.htm

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

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Cary Okawa is also expected to testify as to Defendant’s report to him that P&C’s financial statements were fraudulent and in violation of IRS and Insurance Department regulations. He will be asked as to which officer of P&C signed off on the 1996 financial statements, whether the auditors opinion was qualified or unqualified, and why Coopers & Lybrand approved P&C’s financial statements when they were previously advised by Harmon, then president of the company, that they were fraudulent.

Cary Okawa is also expected to testify regarding his business, professional and personal relationships with Dennis Tsuhako, Arthur Andersen, Enron, Mark McConaghy, PricewaterhouseCoopers, Warren Price III, Colbert Matsumoto, Rodney Park, Wally Chin, Clyde Mark, Nathan Aipa, Colleen Wong, Louanne Kam, Henry Peters, Richard Wong, Jeff Stone, Gilbert Tam, Margery Bronster, Hugh Jones, Earl Anzai, Lyn Anzai, Dee Jay Mailer, Diane Plotts, Sukamto Sia, Bank of Honolulu, Bob Awana, American Security Bank, Bank of America, Bank of Hawaii, Central Pacific Bank, Citigroup, First Hawaiian Bank, Hawaiian Electric, Linda Lingle, John Waihee, Ben Cayetano, HonFed, Goldman Sachs, William Simon, Robert Rubin, Henry Paulson, Rocco Sansone, Marsh & McLennan, ACE Insurance, Aon, XL, Zurich, Allied World Assurance, Mid-Ocean Re, American Re, AIG, Robin Campaniano, Chubb Group, Hank Greenberg, Constance Lau, Nainoa Thompson, Hamilton McCubbin, Greg Brenneman, Hawaiian Airlines, Aloha Airlines, David Banmiller, David C. Farmer, Steven Guttman, Hawaii Superferry, Steve Case, Dan Case, Judith Neustadter Fuqua, Judge Kevin Chang, Judge David Ezra, Judge Lloyd King, Judge Robert Faris, Judge Eden Elizabeth Hifo (fka Bambi Weil), Lokelani Lindsey, Jeremy Harris, City & Co. of Honolulu, Ceradyne, Admiral William Crowe, Robert K.U. Kihune, Admiral Thomas Fargo, Norman Mineta, Faye Kurren, Peter Savio, Edwina Clarke, Accuity LLP, Bill Clinton, Hillary Clinton, George W. Bush, Barack Obama, and others to be named upon discovery.