Tradewind Capital
Taxpayer money blowing in the wind?
Sightings from The Catbird Seat
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Meet the Researchers
Hawaii Business thanks Tradewind Capital Group Inc., for providing the research for the sixth annual “Top 20 Wealthiest Landowners” list.
Tradewind Capital is the investment subsidiary of Island Holdings Inc. Tradewind Capital engages in asset-management activities and pursues investment opportunities in real estate and private equity. Its joint venture partner, Dallas-based L&B Realty Advisors, is one of the nation’s largest commercial real estate investment organizations.
Among other transactions, L&B recently acquired Kukui Grove Center and Kukui Marketplace for one of its institutional clients.
Bruce M. Nakaoka, Managing Director
Prior to Tradewind Capital, Nakaoka was co-founder and managing director of MN Capital Partners, a firm specializing in private investments. From 1987 to 1996, Nakaoka was director of the Real Estate Investment and Appraisal Division for Kamehameha Schools/Bishop Estate. From 1980 to 1987, Nakaoka served as assistant vice president with a commercial real estate appraisal firm. Nakaoka received the MAI designation from the Appraisal Institute in 1990. He’s a director of the McKinely High School Foundation and an administrator of the Matsuo Takabuki, Goldman Sachs and William S. Richardson Commemorative Scholarship Funds. Nakaoka earned both bachelor’s and master’s degrees in business from the University of Hawaii at Manoa.
Eric K. Martinson, Managing Director
Prior to Tradewind Capital, Martinson was co-founder and managing director of MN Capital Partners, a firm specializing in private investments. From 1984 to 1996, Martinson was director of Kamehameha Schools/Bishop Estate’s Financial Assets Division, responsible for its globally diversified private capital and marketable securities portfolios.
He is vice chairman of the Japanese Cultural Center of Hawaii, a member of the Sierra Club Honorary Board, a business mentor for the Native Hawaiian Chamber of Commerce and an administrator of the Matsuo Takabuki, Goldman Sachs and William S. Richardson Commemorative Scholarship Funds. Martinson holds a bachelor’s degree in finance from the University of Hawaii at Manoa and an MBA from the Fuqua School of Business at Duke University.
Bernard Villanueva, Investment Associate
Villanueva is an investment associate with Tradewind Capital Group. From 2005 to 2006, Villanueva was an investment associate at MN Capital Partners, after graduating with a BBA in finance and BA in economics from the University of Hawaii at Manoa. Villanueva also holds a BS in information computer science and is a certified Java programmer.
Office of Hawaiian Affairs
711 Kapiolani Blvd, Ste 500
Honolulu, HI 96813
Committee on Asset & Resource Management
January 24, 2007
MINUTES
Trustees Present:
Trustee Oswald Stender, Chair
Trustee Haunani Apoliona
Trustee Donald Cataluna
Trustee Walter Heen
Trustee Colette Machado
Trustee Boyd Mossman
Trustee John Waihee, IV
Trustees Excused:
Trustee Rowena Akana, Vice Chair
Trustee Linda Dela Cruz
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Guests:
Dorothy Cataluna
Eric Martinson
Christine Mullis
Bruce Nakaoka
Andrew Smith
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A. REAL ESTATE WORKSHOP
A presentation was offered by Mr. G. Andrews and Ms. Christine Mullis from L & B Realty Advisors, LLP from Texas....
In response to Trustee Machado’s inquiry regarding fees and due diligence, Mr. Smith explained that fees are determined on a case by case basis depending on details of the project. Funds are different wherein funds are regulated by the SEC. Due dilligence will be done by L & B Realty....
Trustee Mossman inquired about retaining their services without paying up front. Mr. Smith suggested that there are many different options available, but the best scenario would be for the Trustees to set guidelines and for L & B Realty to act within those perameters.
Trustee Stender inquired about OHA’s planned new office building – with depreciation, can OHA, as a non-profit, sell the building and form a joint venture to do that. Mr. Smith said that the selling of tax benefits has gotten very complicated and the new tax code impacts it more. There is, however, still some structuring that can be done thaat will allow a taxable entity to take advantage of things that are not an abuse to use; it is not as easy as it used to be. As far as looking at a raw piece of land and seeing what the highest and best use is, hiring architects and project managers as well as overseeing the entire development, they can handle that.
Trustee Mossman asked about OHA’s procurement policy. Administraton Namu’o stated that OHA has a list of professional service providers, and depending on what is being procured, people on this list may be called upon. In a situation such as this, where the potential disbursement will be large, he is not sure that method of procurement will be suitable....
The meeting was adjourned by Chairman Oswald Stender at 2:50 p.m. ...
Minutes of OHA’s Committee on Asset and Resource Management
August 31, 2006
FOLLOW THE MONEY
NATIVE HAWAIIAN ECONOMICS
OVERVIEW
The following mana'o is in preparation to provide an immediate Economic plan to counter federal funding programs which provide the elderly, children, health, housing, education, employment programs and services to the Kanaka Maoli (native Hawaiian) people. The Kanaka Maoli community have the worst social conditions in Hawai'i. In fact, the Kanaka Maoli are the worst economically distressed population in Hawai'i.
Economic Self determination means that the Hawaiian people have an undivided interest in the land and natural resources, but also in the wealth (kala) of our Ali'i, public and private trusts and agencies. Billions of dollars of Hawaiian trust funds in cash are in at least the top three financial institutions today, Bank of Hawaii (BoH), First Hawaiian Bank (FHB) and American Savings (ASB) in which they have benefitted hundreds of billions of dollars in leverage.
If this is so, then hundreds of Millions to BILLIONS of dollars in local Banks now are making tons of money through a 10 to 1 capital leverage formula. We're not talking about service fees and interest rates, these fees are merely "added value" to the Banking business, we're talking about a 10 to 1 leverage of profit-making potential.
OHA is a great example of this leverage, I believe in 1998 to 2000, they had something like 300 to 600 million dollars in First Hawaiian Bank, with their "capital leverage formula" that is 3 to 6 billion dollars in leverage to lend and invest in the community. The other thing to know about FHB is that it is owned by Bank Nationale de Paris of France. This means that Kanaka Maoli funding is also financing programs and projects in other countries, and that is just FHB.
As for Bank of Hawaii (that’s my Bank!) it makes you wonder whose Bank that really is. Of course it also makes you wonder about Connie Lau, Kamehameha Schools Trustee CEO who is also the CEO of American Savings Bank (ASB). One of the biggest shareholders of ASB is multi-national corporation, Helco.
This is just a small portion of what we find when we Follow the Money....
And, you can continue to Follow that Crooked Money Trail at...
http://bumpykanahele.com/hawaiian_economics.php
February 12, 2004
OHA portfolio grew nearly
30 percent last year
By Vicki Viotti, Honolulu Advertiser
A portion of the trust fund that pays for Office of Hawaiian Affairs beneficiary programs has grown by nearly 30 percent in the past year, according to a quarterly report issued yesterday to OHA trustees.
The trust fund is fed by the OHA share of revenue from lands ceded from the kingdom of Hawaii after it was annexed by the United States. Since Feb. 28, 2003, the fund’s portfolio managed by Russell Investment Group has increased in market value by about 28.7 percent and now is worth about $164 million, according to the report.
The group is proposing shifting about 10 percent of OHA investments into the “private equity”sector. These are privately negotiated investments in companies that generally are not public.
The proposal received the backing of the OHA resource management committee and must be approved by the board of trustees.
Also yesterday, trustee Rowena Akana proposed hiring a second lobbyist to assist efforts to pass the Akaka bill for federal recognition of Native Hawaiians. Last May, OHA hired the Patton Boggs firm to lobby in the Senate, setting aside $450,000 for the contract.
Akana cited a prediction by U.S. Sen. Dan Inouye that the bill could cross over from the Senate in April or May, leaving little time to lobby the House of Representatives.
Trustee Oswald Stender, committee chairman, said Patton Boggs has said “the time is not right” for such a push; the proposal was tabled for two weeks.
However, Akana maintained that talks should begin quickly “so we can be ready to hit the ground running” during the slim window of opportunity that an election year presents. She suggested working with lobbyist Jack Abramoff of the firm Greenberg Traurig.
Akana cited Abramoff’s strong connections to House Republican leaders as being among his credentials.
January 4, 2006
Lobbyist Abramoff’s Clients Made
Donations to Sen. Inouye
KITV 4 News
KITV has learned that Sen. Dan Inouye was among dozens of Congress members who received campaign donations from lobbyist Jack Abramoff or his clients.
Abramoff on Wednesday pleaded guilty to felonies that insiders say have brought corruption to a new level in Washington. Abramoff admitted bribing members of Congress.
Abramoff pleaded guilty in Florida and Washington courts to five felony counts. As part of his pleas, Abramoff will help investigators determine if gifts and donations from him and his clients helped buy favorable treatment from lawmakers.
Inouye received a total of $6,000 from Abramoff's Indian clients during the years 2002 to 2004. He received $2,000 from the Mississippi Band of Choctaw Indians, $2,000 from the Pueblo of Sandia and $2,000 from the Agua Caliente Band.
In a written statement, Inouye said those tribes contributed to his campaigns for years before Abramoff retained them.
Rep. Neil Abercrombie received $2,000 in 2002 from the Agua Caliente Band before they became a client of Abramoff. Abercrombie received two donations from the tribe in 2001 and once in February 2002. Abramoff began working for the tribe in July 2002.
Abercrombie is a member of the House committee that handles Indian affairs.
Abercrombie said he and other committee members got donations from the Indian tribe because it already trusted them to do the right thing. Not because Abramoff was trying to buy influence.
"He's a sleaze bag. He stole from his clients who gave him money in good faith," Abercrombie said.
"If any tribe wishes to have its contribution from any year returned, I will gladly do so," Inouye said in his statement.
Abercrombie said he will not return his donation from Abramoff's Indian tribe client because that would imply the tribe was guilty of wrongdoing when it's Abramoff who cheated them....
For more, GO TO > > > The Bureau of Indian Affairs
Audit of the Office of Hawaiian Affairs
Report No. 05-03, April 2005
Summary
With over $300 million in assets, the Office of Hawaiian Affairs (OHA) is constitutionally the main vehicle for the State to meet its trust responsibilities to native Hawaiians and Hawaiians....
OHA has shown little improvement in its ability to serve Hawaiians since our last audit in 2001. We found that the Board of Trustees still has not provided the State with a comprehensive master plan for bettering the conditions of native Hawaiians and Hawaiians....
We also found that OHA is still grappling with the effects of poorly planned reorganizations. During FY2001-02 and FY2002-03, OHA hired numerous employees to fill a variety of positions, including key managerial positions. Yet, in the midst of organizational change, OHA lacks basic policies and procedures to guide the actions of its staff, and its organizational charts and functional statement are inconsistent. This situation is compounded by confusion among program directors on how OHA’s priorities translate into the agency’s budget.
In addition, we found that OHA’s casual administration of its finances does not demonstrate respect for its fiduciary duty to all Hawaiians. Certain protocol and trustee expenditures appear questionable.
In addition, tighter oversight of the Native Hawaiian Revolving Loan Fund is needed to prevent deterioration of loan recipients’ financial condition. The fund continues to experience high delinquencies and defaults among its loan recipients, jeopardizing the availability of resources to future Hawaiian entrepreneurs....
Conclusion
After being in existence for over 25 years, the Office of Hawaiian Affairs continues to operate like a fledgling agency. The constitutionally and statutorily identified leader of the Hawaii community has yet to present the State with a comprehensive master plan to marshal public and private resources to better the conditions of all Hawaiians. It is still struggling to put its own house in order and remains casual in the administration of the funds over which it has a fiduciary duty of loyalty to its beneficiaries. Overall, OHA has shown little improvement in meeting its obligation to improve conditions of all Hawaiians. Until it focuses on development of a comprehensive master plan as a priority, OHA’s leadership role and trust obligations to its beneficiaries will remain unfulfilled.
Marion M. Higa
State Auditor
State of Hawaii
Internet References:
http://en.wikipedia.org/wiki/Office_of_Hawaiian_Affairs
www.oha.org/content.asp?contentid=465
www.oha.org/content.asp?contentid=458
www.state.hi.us/auditor/Reports/2005/05-03.pdf
www.punawelewele.com/halepai/iulai/multicent.htm
http://nature.org/pressroom/leadership/art11950.html
http://starbulletin.com/specials/oha.html
http://starbulletin.com/97/03/03/news/story5.html
http://starbulletin.com/2000/02/23/news/story1.html
http://starbulletin.com/2000/03/20/special/
http://starbulletin.com/2000/10/06/news/story4.html
http://starbulletin.com/2000/11/08/news/story6.html
http://starbulletin.com/2004/01/18/news/story5.html
http://starbulletin.com/2005/04/07/news/index3.html
http://starbulletin.com/2005/11/17/news/story08.html
www.starbulletin.com/2005/12/08/news/story01.html
http://poinography.com/index.php?p=1554
www.environment-hawaii.org/396tpf.htm
www.environment-hawaii.org/100board.htm
www.nature.org/wherewework/northamerica/states/hawaii/projects/
www.doi.gov/oia/Islandpages/palmyramain.htm
www.state.hi.us/dlnr/dofaw/wpp/page2.html
http://hawaiiankingdom.info/C608676235/E20060107142357/
http://www.indianz.com/News/archives/002477.asp
http://www.indianz.com/News/2005/010557.asp
http://www.indianz.com/News/2005/011315.asp
http://www.worstof.net/News/2004/000990.asp
http://blog.hawaiiankingdom.info/
www.officeofhawaiianaffairs.com/
http://www.indiancountry.com/content.cfm?id=1096410535
To be continued...
For more money blowing in the wind
FLY TO
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A Connecticut Yankee in King Kamehameha’s Court
Birds in the Halls: The University of Hawaii
Dirty Money, Dirty Politics & Bishop Estate
Gensiro Kawamoto: How to Pluck a Billionaire
The Consuelo Zobel Alger Foundation
The Office of Hawaiian Affairs
The Vultures in Maunawili Valley
Sukamto Sia: The Indonesian Connection
Vultures of the Sandwich Isles
Office of the U.S. Trustee vs. Harmon
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CHRONOLOGY
January 14, 2006: Originally posted on www.the-catbird-seat.net
March 13, 2007: Judge David Ezra signs Order to shut down website
July 8, 2009: Latest update on www.kycbs.net
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