Posted on: Sunday, July 3, 2005

'Wall' keeps criminal, civil probes separate

By Jim Dooley
Advertiser Staff Writer

The Attorney General's office must keep its civil and criminal probes of RightStar separate and has taken steps to prevent any collaboration between the lawyers and staffers involved in two cases, attorneys said.

The separation is important because it is improper to use the threat of criminal action to advance a civil case, or vice versa.

Similar ethical barriers, informally called "Chinese walls," were erected inside the Attorney General's office when simultaneous civil and criminal investigations were conducted in the late 1990s of the Kamehameha Schools/Bishop Estate trustees and their management of the estate.

Richard Wong

Lawrence Goya

In fact, two lawsuits are still pending in state courts here — filed by former Bishop Estate trustee Richard "Dickie" Wong and his former brother-in-law, developer Jeffrey Stone — alleging that the Attorney General's office illegally used the separate civil and criminal probes as leverage to force Bishop trustees to resign.

Deputy Attorney General Lawrence Goya, who filed and later dropped criminal charges against Wong, Stone and former Bishop Estate trustee Henry Peters, is a defendant in both pending suits. One filed by Wong was dismissed by a Circuit Court judge, but that ruling is now under appeal before the state Supreme Court. The other, filed by Stone last year, is scheduled to go to trial next year.

Attorney William McCorriston, who represents four former RightStar trustees named as defendants in the attorney general's civil lawsuit said, "There's always a concern in a 'Chinese wall' situation, because there's an inherent tension between civil and criminal proceedings conducted by the same office."

Another ethical issue arises because Attorney General Mark Bennett and First Deputy Attorney General Lisa Ginoza are former partners in the McCorriston law firm.

Bennett said last week he departed from the firm long before it became involved in the RightStar case and thus has no conflict of interest in overseeing his office's RightStar-related activities.

Ginoza left the McCorriston firm in January of this year to join Bennett's staff and "has recused herself from any involvement" in the current cases, Bennett said.

"It wasn't clear that recusal was necessary but it was decided it was best for her to play no role," Bennett said.

Reach Jim Dooley at jdooley@honoluluadvertiser.com or 535-2447.