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WITNESS: JUDGE ROBERT FARIS

 
10 WHO MADE A DIFFERENCE: ROBERT FARIS - Two of the bankruptcy judge's most difficult decisions in these cases involved removing former Hawaiian CEO John Adams and awarding Hawaiian trustee Joshua Gotbaum a success fee far lower than what was requested.

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

ROBERT J. FARIS

Judge Robert Faris is a former partner in law firm of Gelber, Gelber, Ingersoll, Klevansky & Faris *; attorney for Kamehameha Investment Corp. in the Peter Savio bankruptcy case; appointed Bankruptcy Judge for the District of Hawaii by Chief Judge Mary M. Schroeder of the United States Court of Appeals for the Ninth Circuit, effective February 14, 2002; bankruptcy judge in the Aloha Tower Associates (Lessor to our business, Orbits Hawaii, and a Creditor in this case), Hawaiian Airlines, Aloha Airlines, Summit Communications and Bobby Harmon cases.

United States Bankruptcy Court, District of Hawaii
1132 Bishop Street, Suite 250-L
Honolulu, HI 96813

Fax: 808-522-8120
Email:
hib@hib.uscourts.gov

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U.S. Department of Justice

Executive Office for United States Trustees

Washington, D.C.
Office of Research and Planning

PRESS RELEASE

For Immediate Release
October 30, 2001

U.S. TRUSTEE PROGRAM LAUNCHES
BANKRUPTCY CIVIL ENFORCEMENT INITIATIVE

WASHINGTON, D.C.--The United States Trustee Program has launched an initiative to more aggressively use existing civil enforcement methods to curb abuse of the bankruptcy system, Martha Davis, Acting Director of the Executive Office for United States Trustees, announced today.

"Effective case administration is vital to ensure the American public that the bankruptcy system provides relief for honest but unfortunate debtors overcome by serious financial difficulties," Davis stated. "The Civil Enforcement Initiative emanates from the U.S. Trustee Program's long-standing commitment to enforce the Nation's bankruptcy laws and explore other meaningful strategies to bolster public confidence in the integrity and effectiveness of the bankruptcy system."

"The priorities of the initiative will require a concerted effort nationwide to use existing tools in a way that best accomplishes tangible results and improvements for case administration," Davis continued. "Many of our offices use such strategies today and we hope to build upon their experience. By focusing our resources on these priorities, we also seek to address some of the concerns that have been at the forefront of debate in recent years both before Congress and in other public venues. In the end, this is very much a community effort that will require communication and cooperation with private bankruptcy trustees and with the bankruptcy bench and bar."

These are the priorities of the Civil Enforcement Initiative:

Ensuring that Chapter 7 is not abused and that Chapter 7 debtors are held accountable.

Chapter 7 debtors who do not comply with the law will have their cases converted or dismissed, or their bankruptcy discharges denied or revoked. Enforcement measures include motions to dismiss Chapter 7 cases under 11 U.S.C. §§ 707(a) and 707(b), and complaints to bar or defer discharge under 11 U.S.C. § 727.

Protecting consumer debtors, creditors, and others who are victimized by those who mislead or misinform debtors, make false representations in connection with a bankruptcy case, or otherwise abuse the bankruptcy process.

Attorneys and bankruptcy petition preparers (non-attorneys who prepare bankruptcy documents for a fee) must engage in full disclosure, be free of conflicts of interest, and engage in ethical practices. Enforcement measures include motions for sanctions, contempt of court, and disgorgement under 11 U.S.C. § 329 for misconduct by attorneys, and complaints and motions under 11 U.S.C. § 110 for misconduct by bankruptcy petition preparers....

Fighting fraud and abuse by making criminal referrals and assisting United States Attorneys in criminal prosecutions.

The U.S. Trustee Program is a component of the Justice Department that oversees the administration of bankruptcy cases and intervenes in court to enforce the bankruptcy laws. There are 21 regions in the Program, each headed by a U.S. Trustee appointed by the Attorney General.

The Civil Enforcement Initiative took effect Oct. 1, 2001, with the start of the federal government's 2002 fiscal year. Previous U.S. Trustee Program initiatives have focused on issues such as enhancing the supervision of private trustees who administer Chapter 7 bankruptcy cases, increasing the efficiency and speed of Chapter 7 case administration....

Contact:

Jane Limprecht, Public Information Officer

Executive Office for U.S. Trustees

(202) 305-7411

www.usdoj.gov/ust/eo/public_affairs/press/docs/pr20011030.htm

 

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HERE COME DA JUDGE

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GOOGLING FOR JUDGES

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GOOGLING FOR JUDGE ROBERT FARIS

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ZOOMINFO PROFILE FOR JUDGE ROBERT FARIS

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GOOGLE MAPS JUDGE ROBERT FARIS

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THE BANKRUPTCY BUZZARDS IN ALOHA AIRLINES

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NEW DISCOVERY (03/30/09): Undisclosed conflicts of interest between Attorney General Alberto Gonzales, the United States Department of Justice, Office of the U.S. Trustee, Curtis Ching, Carol Muranaka, Guido Giacometti, Susan Tius, Sukamto Sia, Bank of Honolulu, Diane Plotts, Bob Awana, Linda Lingle, Citigroup, Robert Rubin, Bill Clinton, John Waihee, Ben Cayetano, Goldman Sachs, Colbert Matsumoto, Henry Peters, Matsuo Takabuki, Richard Wong, Jeff Stone, Oswald Stender, Gerard Jervis, Lokelani Lindsey, Nathan Aipa, Colleen Wong, Louanne Kam, John Candon, Clifford Laughton, Timothy Johns, Bishop Museum, Nainoa Thompson, Mark Polivka, Judge Eden Elizabeth Hifo (fka Bambi Weil), Judge Lloyd King, Judge Robert Faris, Judge David A. Ezra, Judge Barry Kurren, Mary Lou Woo, James B. Nicholson, David C. Farmer, Steven Guttman, etc.:

August 24, 2000

Executive Centre units

auctioned for $4 mil

Ownership of the properties
could change during
another round of bids

By Peter Wagner, Star-Bulletin

A Nevada investor has outbid Citibank on 32 residential and two commercial units at Executive Centre, the downtown high rise that once belonged to Indonesian investor Sukamto Sia.

But with court confirmation and another round of bids possibly ahead, ownership of the property is yet to be determined.

Clifford Laughton, president of the Reno-based Nevada Holdings Ltd. and chief executive at Honolulu-based satellite company Columbia Communications Corp., yesterday made the winning bid of $4,000,100.

Laughton's bid topped a $4 million offer by Citibank N.A., the only other bidder at a foreclosure auction at the state courthouse yesterday.

The leasehold properties include 31 residential units, a penthouse, two commercial spaces occupied by Sprint Hawaii and Fujikami Florist and 65 parking stalls.

The heavily mortgaged 41-story building, at 1088 Bishop Street also includes a 120-room Aston hotel, retail outlets including Long's Drugs and Ross Dress For Less and nearly 300 residential units.

The entire property was appraised last year at $39.5 million.

Citibank, the major creditor in a foreclosure action against one of Sia's company's, MKS Executive Partners, took possession last month of most of the 41-story building in a complex bankruptcy deal in which Sia's estate will receive about $500,000.

Citibank affiliate EXCT L.P. took ownership of about 400 units on July 28.

Sia, currently in Chapter 7 bankruptcy liquidation, originally filed for Chapter 11 bankruptcy reorganization in November 1998.

While Citibank yesterday allowed itself to be outbid by $100, the sale is far from over. Under rules of the foreclosure, new bids may be entertained at confirmation but must be at least 5 percent above the auction price.

Foreclosure commissioner John Candon said at least three parties who were silent during yesterday's auction have asked when the confirmation hearing would be. No date has been set.

Laughton yesterday said he would likely honor existing leases at Executive Centre if he remains the high bidder. He said the units are a good investment because of depressed property values and a strong rental market in the downtown area.

While Executive Centre was once a key holding of Sia in Honolulu, the bankruptcy trustee was unable to liquidate the property for creditors because Sia held no equity in it.

His ownership in the building was through MKS Executive Partners, one of his numerous companies.

The 40-year-old businessman owes nearly $300 million to casinos, banks and creditors around the world.

www.archives.starbulletin.com/2000/08/24/business/story1.html

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NEW DISCOVERY (02-25-09): More factual evidence of fraud, bad faith, and undisclosed professional and financial conflicts of interest of Trustee David C. Farmer and Ron Sakamoto, Gerard Jervis, Kamehameha Schools, Hung Wo Ching, Louise Ing, Aloha Airlines, David Banmiller, Ron Burkle, Yucaipa, Bill Clinton, Judge Robert Faris, etc.

Aloha CEO Banmiller's statement

to Bankruptcy Court

Editor's note: Here is the statement that David Banmiller, president and chief executive officer of Aloha Airlines, read to the federal Bankruptcy Court on Tuesday after the company's reorganization plan was confirmed by Judge Robert Faris:

THANK YOU, Your Honor, for allowing me this opportunity to address the court. If you perceive a softness in my tone, and perhaps a slip of the tongue here and there, it relates in part to a lack of sleep -- due in part to Your Honor's challenging words of yesterday. I must say, though, that sleep is overrated.

I will not take up much of the court's time, Your Honor, but the significance of this moment in the evolution of Aloha Airlines deserves comment.

In the 60-year history of this fine company, Aloha and its employees have never faced greater challenges: an industry in chaos, 50 percent of U.S. airlines in bankruptcy, unbridled competition, and oil at unprecedented levels.

The employees and local ownership of Aloha have continuously stepped forward, making contribution after contribution for its very survival. Had it not been for such efforts, we would not be standing before you today.

AS YOU KNOW, I am a relative newcomer and have been through a few "economic Vietnams" in this industry, but none as challenging, certainly sometimes frustrating, but on the whole no more satisfying than this experience, and I have enormous respect for everyone involved.

It is always risky to highlight certain individuals and situations in such a case, but I have chosen to take the risk because this accomplishment is all about teamwork, sensitivity when needed, and most of all, focus on the end game with extraordinary people.

We have asked our employees and their union leaders three times in the last several years to step up to tough stuff. In every instance, they made the tough decisions. Their willingness to make sacrifices while maintaining top-quality service to our valued customers, says volumes about the Aloha spirit within the heart and soul of these fine people.

I particularly wish to thank:

» Dave Bird, chairman of (the master executive council for the Air Line Pilots Association);

» Peggy Gordon, president of (the Association of Flight Attendants/Communications Workers of America);

» Randy Kauhane, assistant general chairman of (the International Association of Machinists and Aerospace Workers 141);

» Ken Boon, assistant general chairman of IAM 142;

» David Durkin, president of (the Transport Workers Union).

» The shareholders, and in particular the Chings and Ings, have a long and cherished history with this company. When I joined, I asked to be given the latitude to make the tough decisions without undue influence or avoidance of the myriad of business decisions that had to be made.

The shareholders were true to their word, and allowed the management team to execute, and they put cash behind their words.

» Our management team, some new but with an outstanding support staff comprised of a team of veterans in this business, many who are residents of this state, hung in there, put up with my idiosyncrasies and saw the ranks of VPs dwindle, dynamically increasing their workload -- with never a complaint.

» Hawaii's federal-, state- and county-elected officials, and all of our vendors, who have reached out during this past year. ... Without their support, we also would not have succeeded in getting this far. To them we owe thanks.

» Our customers, for their loyalty bringing cash in the door with every ticket sale. They provided the hope for our company to get through each day.

» Our team of professionals, led by Paul Singerman of Berger Singerman; Char Sakamoto Ishii Lum & Ching led by Betty Ishii; the Giuliani Group led by Marc Bilbao; our lead banker First Hawaiian Bank led by Don Horner; our local counsels Don Gelber and David Farmer; the unsecured creditors' committee chaired by Capt. Michael Feeney and guided by lead counsel Brett Miller; and Sheldon Kline of Thelen Reid.

» And many, many more who made this happen, we thank you.

MY COMMENTS would be far from complete without recognizing the presence of both Richard d'Abo of Yucaipa and Willie Gault of Aloha Aviation Investment Group. Without their financial commitment and support, this company would not be here, especially considering the rejections we faced in the investment community. I personally thank them, as well as Ron Burkle, for their confidence in the employees of this fine company.

And finally, Your Honor, you, too, have made the tough calls, sprinkling wisdom and experience with at times a level of common sense, humor and sensitivity that does your profession honor. You should take great pride, Your Honor, if I am permitted to say, in what has gone on this past year. Hopefully, this will be your last airline case in the islands.

And now, I assume you can renew your AlohaPass membership and continue to be one of our most-valued customers.

God bless.

www.archives.starbulletin.com/2005/12/04/business/story03.html ~ ~ ~

NEW DISCOVERY (01-17-09): Judge Robert Faris had an undisclosed conflict of interest with Aloha Airlines and David Farmer:

Welcome! E komo mai!

Report on March 21, 2008 Aloha Bankruptcy Hearing

Aloha filed for Chapter 11 bankruptcy protection on Thursday, March 20, for the second time in three years. AFA Aloha Council 54 MEC President Gail Kim-Moe attended the initial bankruptcy hearing on March 21 along with AFA Staff Attorney Jay Trumble and our local counsel Kurt Leong. The following report was compiled from notes taken during the hearing.

Judicial Issues

Judge Robert Faris, who heard the first Aloha bankruptcy case (Aloha I), was originally assigned to the second bankruptcy case (Aloha II). But Judge Faris recused himself stepped down from the case
for an undisclosed conflict; Judge Lloyd King is now assigned. Notably, Judge King will be on vacation from April 7 - April 25, returning to the bench April 28. Judge King anticipates assigning a mainland judge to cover emergencies during this period.

Opening Remarks of Aloha
s Counsel

Alohas attorney opened the hearing with a review of the Companys status for the court. According to his opening remarks, Alohas revenue sources are:

· inter-island service,

· TranPac service,

· contract services,

· cargo services.

The attorney indicated that Alohas TransPac, contract, and cargo services have been profitable since the first bankruptcy reorganization. The losses have resulted from heavy inter-island revenue losses the Company attributes to Mesa Air Group aggressive pricing tactics. The Aloha I business plan approved in the earlier case has exceeded all goals with the exception of inter-island service.

Aloha
s attorney also indicated that Yucaipas and GMAC
s cash infusion to date exceeds $108M. It was represented in court that no further funds are available at this time and that Aloha cannot continue operations without additional funds.

Aloha currently in negotiations to sell some or all of its assets. Judge King inquired as to whether the reorganization plan anticipated a sale
counsel responded a sale was the best foreseeable option.

First Day Orders

The court issued orders granting all the petitioners first-day motions, noteworthy comments and issues from the discussion of those motions include the following:

Suppliers/Vendors

currently $1.7 million maintenance fee obligations outstanding: Court ordered payment.

currently $150,000 shipping fee obligations outstanding:

Court ordered payment.

Clearinghouse/Interline Agreements

Aloha reported a current deposit of $100,000 with a newly negotiated agreement with ACH to increase the deposit to a total of $1 million with payments over the next four weeks. Upon hearing this report the Court then issued an order granting the motion and ordering payment.

Cash collateral position

The Companys attorneys reviewed for the Court the financial position of the airline pertinent to 10-day period following the bankruptcy filing. As indicated in Court:

· At start of 10-day period: $3.8 million

· Projected losses over 10-day period: $2.2 million

Payroll of $1.68 million due for Tuesday, March 25 payroll; Court issued order authorizing payment.

GMAC and Yucaipa stipulated (agreed) to the Companys use of capital through March 31.

Official Committee of Unsecured Creditors

The Official Committee of Unsecured Creditors represents the interests of the Creditors during the bankruptcy, with access to in-depth confidential financial and operational data, business plans, and bankruptcy issues. AFA secured a seat on the Creditors Committee during Aloha I, enabling us to have crucial information throughout the proceedings. David Borer, AFAs General Counsel, submitted a letter directly to the U.S. Trustee applying for a seat on the committee. We expect AFA to be appointed to the Creditors Committee and for the initial meeting of the Committee to take place in the near future.

http://www.afaaloha.com/default.asp?id=218

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NEW DISCOVERY (11-24-08): New Exhibit: “EQ 2048 - Deposition of Lokelani Lindsey taken on November 4 & 9, 1999". This document provides clear evidence that J. Douglas Ing had multiple conflicts-of-interest in this case and, since he was not a named Defendant in my RICO lawsuit against the former Trustees, he was not a legitimate signatory to the Settlement Agreement: Furthermore, since the Settlement Agreement was NOT SIGNED by any of the five Trustees actually named as Defendants, the Settlement Agreement was not legal or valid. (See Exhibit A)

http://www.kycbs.net/Lindsey-docs-Vol-1-p1-4.pdf

http://www.kycbs.net/Lindsey-docs-Vol-1.pdf

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NEW DISCOVERY (12-22-08): James B. Nicholson apparently has undisclosed business and professional relationships with William S. Richardson, a former Kamehameha Schools Trustee and officer for P&C Insurance Company and a defendant in my RICO lawsuit; and my witnesses Judge Patrick Yim, Tony Rutledge, Bob Awana, Ron Rewald, June Jones, Larry Mehau, and David Farmer, among others (see http://www.kycbs.net/Doc-EQ2048-AG-Witnesses-5-19-0.pdf .

September 11, 2007

Former star athlete head of Hawaii labor board

By Curtis Lum, Advertiser Staff Writer

JAMES B. NICHOLSON

Age: 58

Title: Chairman

Organization: Hawai'i Labor Relations Board

Born: Honolulu

High School: Saint Louis, 1968

College: Michigan State; William S. Richardson School of Law

Breakthrough job: Hawai'i Employers Council

Little-known fact: Not a natural blond. Has held the state basketball single-game scoring record (60 points) and scoring average (26.8) since 1966

Mentors: Al Fraga, Larry Cundiff, Judge Patrick Yim

Major challenge: Promoting cooperation between labor and management pursuant to the spirit and intent of HRS Chapter 89 in a forum that has been traditionally adversarial.

Q. How did you wind up as chairman of the Hawai'i Labor Relations Board?

A. My background had been as a union rep with the Kansas City Chiefs years ago when I was playing ball. I went to law school and took classes in labor, got out of law school and worked with the Hawai'i Employers Council as a management negotiator with Al Fraga. I moved from there to become a production manager at Weyerhaeuser Paper Co., and from there I worked for the joint labor management trust fund with the Carpenter's Union. I went on to private practice from there and represented the Teamsters in arbitration and became an arbitrator. This job requires all of that in order to fully understand the relationships between the parties and the collective bargaining process, the grievance process, what unfair labor practice is and what it isn't, and basically trying to promote labor-management cooperation.

Q. Your background seems to be more on the union side. Do people look at that and feel that you may be biased?

A. It seems like it's more union, and management's perception in a lot of cases is once you work for the union you're always union. The majority of us are born in blue-collar families. My dad was an adult corrections officer, my mom was a housekeeper in a hotel. I think all our roots are in labor. One of the reasons I was selected was I have been an arbitrator for over 10 years and you're only selected by mutual agreement between the parties. During this process with the HLRB you have three appointees. One represents labor, one represents management and the chair represents members of the public. That's the position I'm at. I feel that with my background that I've been groomed for this position.

Q. What's your approach to this job?

A. The board's mission is to promote harmonious and cooperative relationships between the employers, employees and employee organizations. The whole system is set up traditionally to be adversarial. We're working on changing the administrative rules for our organization to permit us to have more flexibility and give them opportunities to settle disputes on their own, create a vehicle so that if they so chose that they could go to mediation through the board at no expense to them using the federal mediators. We're able to work with the parties to do some of this right now. But it's not the way it's been done. I want to try and slow it down to give the parties some time to catch their breath, sit down and talk about it before the attorneys get into a battle. We've been successful in a couple of cases so far.

Q. Was it an adjustment to go from the private sector to the public sector?

A. It's sort of yes and no. It's a huge employer, but because we're quasi judicial, even though we fall under the Department of Labor, we're only under it for administrative and budgetary purposes. We don't answer to anyone so it's sort of like running your own business again. In that way it's not different, but at the same time you're a public employee and you have to abide by whatever rules that you're required to abide by. For myself, you're devoted full time to this position, which means you can't do any other work besides what you're doing here. I wanted this opportunity for quite some time and when it came up, this is what I wanted to do. It's another challenge and something to put some fire back into me again.

Q. Why did you want to pursue the job?

A. I've been in labor for a long time and I've seen what's happened. As an arbitrator, I've watched the parties and there are so many times that I felt that if only people would just sit down and have a meaningful discussion and try to work things out and try to find ways of resolving issues without having arbitrators decide things for them, I think the system would be better served. One of the things that we're responsible for here, and one of the things that I'm working on first, is to find qualified individuals to serve as arbitrators. So many of the arbitrators who are on the list now have no experience in collective bargaining negotiations, have never worked for unions, have no human resource background, and those are the kind of people that you need. You don't have to be an attorney to be an arbitrator. That's where I gained a lot of experience at the Hawai'i Employers Council where I did 30 to 40 negotiations on my own and sat in on a bunch more.

Q. Since you started, has there been anything that surprised you?

A. One of the things that I was surprised with was that, in reviewing annual reports and information concerning board activities in preparation for my interviews, in order to try and get this job, I found that over 40 percent of the board's decisions were overturned. That's bad. That's just not paying attention. You have to look at the courts. You can't just make decisions. You can't make decisions based on emotions. The perception of the public was that the board wasn't being fair. Something needed to be fixed. We have a really good board. Emory Springer is a former police officer on the Big Island. He was the Big Island SHOPO representative. He's just a breath of fresh air and he's all gung-ho to try to resolve disputes, bring the parties together and try to work things out. And I'm the same way. And then there's Sarah Hirakami who is just brilliant. We come up with ideas and she looks up the law and tells us whether we can do it or not or finds cases in support of our positions. We have a real nice balance.

Q. Are some cases more difficult than others to deal with?

A. The cases that I have problems with are cases that have been sitting around here without decisions being issued for over 10 years. Those are difficult. None of the board members was there at the time of the hearing and motions and whatever else happened. Now, if we were to rule in favor of the employers, in a lot of the cases there's a substantial amount of back pay and other issues that are involved that make it a real big mess. You want to be fair. What we're supposed to do is return it to the status quo, but how do you do that 10 years later?

Q. Do you see yourself fulfilling your six-year term?

A. Definitely. I like this place. The opportunity for me to make an impact on the state so far as labor relations is tremendous.

Q. When you leave the board, what do you hope to have accomplished?

A. I'd like to see management and labor walking down King Street holding hands, but that's not going to happen. But to reduce the number of cases that have to go to arbitration; to encourage the parties to include in their collective bargaining agreements provisions for mediation; to reduce the number of unfair labor practices that are filed with the board. At the same time, that number may increase because of the effectiveness of the board as a place to go to resolve problems. So it sort of cuts both ways. You may have more unfair labor practices because whenever there is a problem they may want to say, "Let's go over there and take care of it. That way at least we'll get to talk." That's what I'm hoping.

And (another goal) is to educate people about relationships and trust and get the state and counties to rely upon the people that they hire to advise them on labor relation issues and union issues. Often times that doesn't happen. And encourage them to foster relationships with one another that are meaningful.

The Honolulu Advertiser

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

www.kycbs.net/Google-Steven-Guttman.htm

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NEW DISCOVERY (08/14/08): David Farmer’s undisclosed relationships with Marsh & McLennan; Mercer Consulting Services; Aloha Airlines; Hawaiian Airlines; Judge Robert Faris, Earl Anzai; Lyn Anzai; Joshua Gotbaum; AIPAC; Ben Cayetano; Linda Lingle; others:

March 17, 2002

Dead air deal rankles Aloha

By Susan Hooper, Honolulu Advertiser

The proposed merger between the state's two local airlines foundered because Hawaiian Airlines wanted to change the terms of the agreement, including eliminating the Houston consulting firm coordinating the deal, the chief executive of Aloha Airlines said in a statement today.

Hawaiian's proposal also would have given Hawaiian chairman John Adams the top spots in the merged airline, eliminating Greg Brenneman, the TurnWorks executive who had been orchestrating the merger, according to Glenn Zander, Aloha's president and chief executive officer.

"Aloha could not accept Hawaiian's new proposal because in our judgment, it was not in the best interest of the state, the traveling public or Aloha's shareholders and employees," Zander said.

The details emerged a day after Hawaiian said it was pulling out of the deal because it did not wish to extend what it called an April 18 "outside date for completing the merger." It said increasing costs and risks of the deal were factors.

The announcement surprised many in the state, including employees of both airlines and state legislators who as late as last Tuesday had held a hearing on the merger.

Today, Zander said Hawaiian's action was "regrettable" and said members of Aloha's board of directors voted unanimously to reject Hawaiian's proposal. He also praised Brenneman and TurnWorks for their work on the merger.

Hawaiian spokesman Keoni Wagner said tonight, "We don't necessarily agree with Aloha's characterization of the negotiations, but we also choose not to discuss publicly what would otherwise be private conversations."

The apparent power grab by Adams came even though he and his affiliated companies would have been the financial winners if the merger had gone through. Adams stood to receive assets valued at about $109 million. Adams, his companies and other Hawaiian shareholders also would have held a 52 percent stake in the new airline.

Under terms of the original merger, the shareholders of privately owned Aloha Airlines — many of them relatives of the company founders — would have gotten 28 percent of the merged airline, worth an estimated $56 million.

TurnWorks would have received a 20 percent stake in the company.

For more than a year, Aloha and its consultant have viewed TurnWorks and Brenneman as essential to the success of the merger, according to documents filed with the Securities and Exchange Commission last month that outlined how the merger came about.

Aloha's consultant, Mercer Management, initially approached Brenneman in February 2001 asking whether he wanted to invest in the airline. In July, Brenneman, a former top executive with Continental Airlines, met further with Mercer to discuss a possible investment and subsequent merger with Hawaiian.

Hawaiian officials, contacted in August, initially appeared cool to the idea but after the Sept. 11 terrorist attacks, and subsequent downturn in travel, they agreed to "discuss a possible merger involving the two airlines and TurnWorks," according to the documents.

On Sept. 22, according to the documents, Mercer and senior management officials of Aloha and Hawaiian met and Mercer proposed that both airlines should continue to include Brenneman and TurnWorks in the merger discussions as Brenneman "was likely to be an important factor in creating an agreement between the two airlines, leading the integration efforts, and running the combined carrier and in generating maximum value for shareholders of both companies."

On Sept. 25, the documents say, all parties agreed to proceed with merger talks. They also agreed "that the involvement of TurnWorks and Brenneman would be an important factor in consummating a deal, as past efforts to combine the two airlines were not successful."

TurnWorks officials said in a statement today, "We were surprised and disappointed (by Hawaiian's decision) ... The failure to extend the timetable essentially precludes completing this complex transaction....

The abrupt end to the merger, which was announced Dec. 19, leaves the future of the two airlines and of Hawai'i's interisland airline market uncertain. In announcing the deal three months ago, executives with both airlines said they needed to merge because conditions in the airline industry — and in the interisland market in particular — had made it impossible for them to survive separately.

After the Sept. 11 attacks, both airlines lost tens of thousands of dollars a day and furloughed hundreds of workers. In recent weeks, as the Mainland economy has recovered, there have been signs of improvement in the local airline market.

Still, documents filed with the Securities and Exchange Commission show that Aloha is financially more vulnerable than Hawaiian. The privately held airline has more debt on its books and reported a $1.25 million loss at the end of the third quarter Sept. 30. The airline also has smaller and older aircraft and fewer flights to the Mainland.

Today Zander said Aloha has its own business plan to move ahead "on a stand-alone basis." Aloha spokesman Stu Glauberman said Zander will be meeting with Aloha's employees' union executives tomorrow.

Before the announcements over the weekend, the two airlines had been working on a joint application to take advantage of a special antitrust exemption granted by Congress last November to cooperate on some operations, such as routes, scheduling and pricing....

Gov. Ben Cayetano had been a supporter of the merger and said today, "The failure of the merger had nothing to do with the U.S. Department of Justice, the state Legislature or public opposition. This was a business decision that we will have to accept. The state administration will do its best to try to assure that Hawai'i will continue to have two viable interisland carriers."

State Sen. Ron Menor, D-18th (Mililani, Waipahu, Crestview), chairman of the Senate Commerce, Consumer Protection and Housing Committee, had opposed the merger and his committee took part in statewide hearings....

The mood among workers at Honolulu's interisland terminal was split between the two airlines today, with Aloha employees grim-faced and in no mood to talk about the failed merger, and Hawaiian employees buoyant.

Baggage handlers outside the Hawaiian half of the terminal this afternoon burst into ebullient giggles when asked how they and their co-workers felt about the merger being called off.

"We still have our jobs!" said Thad Estrada, one of the Hawaiian handlers. "Everybody is pretty happy right now. There had been a lot of stress lately, and then today, even though all the schedules and everything are still the same, everybody is smiling. It sure makes the day go better."...

Outside the terminal, Tammy Castro of Mililani and Diane Halemano of Makakilo grew tired of driving around the airport while waiting to pick up relatives, and parked in a lot to talk until their cell phones rang.

"Did you see about the merger?" Castro said. "Oh, I am so happy."

Castro said she'd signed a petition earlier, asking that the merger be stopped.

"They'd have a monopoly on the fares, and we'd have no one else to go to," she said. "We need a choice. People would lose their jobs and we already have enough unemployment. Besides," she added. "No offense, but I just love Aloha."

www.kycbs.net/MM-Mercer.htm

~ ~ ~

NEW DISCOVERY (07-10-08): Undisclosed professional and financial conflicts of interest of Trustee David C. Farmer and attorney Steven Guttman with Cerebus International; Kamehameha Schools; Goldman Sachs; Blackstone Group; David Banmiller, Judge Robert Faris, Judge David Ezra, etc., through his legal representation of Aloha Airlines:

December 4, 2005

Quiet firm rules Waikiki gems

By Rick Daysog, Advertiser Staff Writer

Few people in Hawai'i have ever heard of Cerberus Capital Management LP, yet in the past year, the New York-based hedge fund has become a top hotel owner in the state and major lender to the state's No. 2 airline.

Cerberus took control of Waikiki's crown jewels — the Sheraton Waikiki, the Royal Hawaiian and the Sheraton Moana Surfrider — when it bought a 65 percent interest in the hotels' owner, Japan-based Kokusai Kogyo KK, for $2.4 billion in November 2004.

Cerberus is now acquiring a 30-percent interest in Japan-based Seibu Holdings Inc., which owns the Hawaii Prince Hotel Waikiki, the Hapuna Beach Prince Hotel, the Maui Prince and the Mauna Kea Beach Hotel.

"These properties are worth billions of dollars, making them (Cerberus) one of the biggest hotel owners in Hawai'i," said Mike Hamasu, director of consulting and research at Colliers Monroe Friedlander Inc.

The company also played a pivotal role in Aloha Airlines' reorganization. In March, Ableco Finance LLC, Cerberus' lending arm, teamed up with Goldman Sachs Credit Partners LP to provide up to $65 million in financing to help the bankrupt carrier continue operating.

The rapid rise of Cerberus on the Hawai'i business landscape comes amid a resurgence of investment from Mainland companies.

They include:

The Carlyle Group, based in Washington, D.C., which purchased Verizon Hawaii last year for $1.65 billion.

New York-based Cendant Corp., which in addition to running Avis, Budget, Century 21 and Cheap Tickets, bought the local Coldwell Banker residential real-estate franchise last month.

HRPT Properties Trust, based in Newton, Mass., which paid nearly $600 million to acquire more than 400 acres of industrial properties owned by the Damon Estate and the Campbell Estate.

While much of the outside investment in Hawai'i in the 1990s involved businesses that bought cheap, added improvements and sold three to five years later, today's investor is taking a more hands-on management approach and may end up waiting a decade before they see a big payoff.

"They're much more patient, and they're much more willing to take much more complex risk," said Jon Miho, co-founder of local real-estate investor Trinity Investment LLC, whose affiliate is purchasing the Kahala Mandarin Oriental Hawaii hotel.

Cerberus, a major global player with over $16 billion invested worldwide, declined to comment on its Hawai'i strategy for this story. Local executives who have dealt with the company say its record in the state is mixed.

Managers of the Sheraton chain say that Cerberus is committed to improving its Hawai'i properties, while representatives of Aloha Airlines paint a picture of a demanding lender keeping a close eye on all operations.

Keith Vieira, senior vice president and director of Hawai'i operations for Starwood Hotels & Resorts, which manages the five Sheraton hotels controlled by Cerberus, said Starwood had preliminary discussions with Cerberus about renovating its local properties.

He noted that Kamehameha Schools' $84 million facelift of the nearby Royal Hawaiian Shopping Center has prompted Starwood and Cerberus to consider upgrading the properties.

"We think they're going to be a good owner of our hotels in Hawai'i," Vieira said.

David McNeil, a spokesman for Prince Hotels, said the chain's Japan-based owners haven't planned any changes at this time.

Unlike the mid-1990s "vulture" investors like Colony Capital and the Blackstone Group that bought distressed Hawai'i real estate for as little as 25 cents on the dollar, Cerberus is paying nearly the full value of the properties.

"They're not buying on a huge discounted basis; they're buying on value," said Joseph Toy, president of the local consulting firm Hospitality Advisors LLC.

With Aloha Airlines, Cerberus has been much more hands-on.

In July, Ableco, Cerberus' lending arm, abruptly increased the interest rate on its multimillion-dollar loan to Aloha from 11.25 percent to 14.25 percent, Aloha said in Bankruptcy Court documents.

The following month, Ableco stopped lending money to Aloha until management agreed to hire a chief restructuring officer and reach an agreement to sell the airline. Aloha attorney Charles Dyke stated during a Bankruptcy Court hearing in October that Ableco and Goldman Sachs would consider liquidating Aloha if a deal to sell it fell through.

Aloha, which is being sold to a group headed by California billionaire Ron Burkle and former football star Willie Gault, won approval from Bankruptcy Court last week for its reorganization plan. Aloha could emerge from bankruptcy as soon as Dec. 15.

In a recent Bankruptcy Court filing, Jeffrey Kessler, Aloha's interim chief financial officer, described the pressure Cerberus put on the airline.

"For several days, funds were withheld as the lenders made daily sweeps of cash revenues from (Aloha's) accounts while refusing to re-advance the monies so swept," Kessler said.

"The lenders began demanding, as a condition to each daily advance under the loan, a daily 'deal report' detailing the company's progress in obtaining a transaction sufficient to repay the loan," Kessler added. "They further informed the company that financing would be cut off by Oct. 15, 2005, if a signed letter of intent from an investor were not secured by then."

Cerberus has been involved in a controversy in Japan over its planned investment in the parent of the Prince Hotels.

Cerberus' investment in financially troubled Seibu, one of Japan's largest real-estate firms and owner of the Seibu Railway, has led to legal action by the sons of the company's founder, Yasujiro Tsutsumi.

The brothers, Yuji and Seiji Tsutsumi, recently lost an appeal to Tokyo's high court to essentially block Cerberus' investment and Seibu's restructuring plan. The two brothers recently filed suit in Hawai'i Circuit Court, seeking to be recognized as the rightful owners of the Prince Hotels in Hawai'i.

Founded in 1992 by Stephen Feinberg, a former Drexel Burnham Lambert manager, Cerberus began as a vulture fund specializing in bankrupt and distressed companies. The name, Cerberus, comes from the mythical three-headed dog that guarded the gates of the ancient Greek underworld.

In recent years, the company, whose executives include former Vice President Dan Quayle, has branched out to lending and investing in less-risky companies, says the Wall Street Journal.

The closely held company shies away from publicity, preferring to work in the background. It has no local office or employees based in Hawai'i.

The firm has invested in a broad range of companies, including Mervyn's department stores, building products maker Formica Corp., Italian sportswear maker Fila and DaimlerChrysler's former aircraft leasing business, according to BusinessWeek.

In more recent years, the firm has taken huge bets in troubled companies in Japan, where restrictions on foreign ownership have relaxed in recent years.

Before its investment in Kokusai Kogyo, the company paid $850 million for a controlling stake in Aozora Bank Ltd., formerly known as Nippon Credit Bank Ltd. before it was taken over by Japanese regulators in 1998.

Kevin Aucello, senior vice president at CB Richard Ellis Hawaii who worked with Cerberus Japan executives in the mid-1990s, said that Cerberus' combined ownership stake in the local Sheraton and Prince hotels has advantages.

Owning several high-end hotels in Hawai'i means Cerberus can leverage the advertising, marketing and managing efforts. "It's much more efficient to manage a larger portfolio," Aucello said.

honoluluadvertiser.com

~ ~ ~

NEW DISCOVERY (06-24-08):

Final Decree entered

Date: Tuesday, June 24, 2008 8:17 PM

From: "Steven Guttman" <sguttman@kdubm.com>

To: "Bobby Harmon" <bobby_n_harmon@yahoo.com>, "David Farmer" <farmerd001@hawaii.rr.com>, "Michael Mukasey" <AskDOJ@usdoj.gov>, "Kevin Chang" <sa@hid.uscourts.gov>, "Robert Faris" <hib@hib.uscourts.gov>, "Barry M. Kurren" <richlyn_young@hid.uscourts.gov>, "Carol K. Muranaka" <ustp.region15@usdoj.gov>, "J P Schmidt" <insurance@dcca.hawaii.gov>, "Janet Kamerman" <HONOLULU@FBI.GOV>, "Mark Bennett" <hawaiiag@hawaii.gov>, "Hugh Jones" <hugh.r.jones@hawaii.gov>, "Linda Lingle" <governor.lingle@hawaii.gov>

Cc:

"Mediation Center of The Pacific" <mcp@mediatehawaii.org>, "Sheryl Nicholson" <office@acluhawaii.org>, "Robert Bruce Graham" <bgraham@awlaw.com>, "James Wriston" <jwriston@awlaw.com>, "Andrew Winer" <winer@pacificlaw.com>, "James Cribley" <jcribley@caselombardi.com>, "Lawrence Goya" <hawaiiag@hawaii.gov>, "Pension Benefit Guaranty Association" <participant.pro@pbgc.gov>, "James B Nicholson" <jamesbnicholson@aol.com>, "Executive Office for U.S. Trustees" <ustrustee.program@usdoj.gov>, "Office of Inspector General US Dept of Justice" <oig.hotline@usdoj.gov>, "George Will" <georgewill@washpost.com>, "Haunani Apoliona" <info@oha.org>, "Leroy Colombe" <lcolombe@ckdbw.com>, "Scott Helman" <shelman@globe.com>, "Bob Nichols" <bob.bobnichols@gmail.com>, "Laura Thielen" <dlnr@hawaii.gov>, "Barry Taniguchi" <communications@hcf-hawaii.org>, "Paul Achitoff" <honoluluoffice@earthjustice.org>, "Laurie Bennett" <info@muckety.com>, "Dave Shapiro" <volcanicash@gmail.com>, "Gail Kim-Moe" <Gkim.moe@gmail.com>, "Marshall Chriswell" <mc@whistleblowers.org>, "Greg Palast" <palast@gregpalast.com>, "Dee Jay Mailer" <ksinfo@ksbe.edu>, "Laser Haas" <laserhaas@msn.com>, "Michael Moore" <mike@michaelmoore.com>, "Texas Observer" <editors@texasobserver.org>, "Brian W. Bisignani" <bbisignani@postschell.com>, "Aon Insurance Managers" <mike_coulter@agl.aon.com>, "William Burgess" <hwburgess@hawaii.rr.com>, "Brian E. Schatz" <teamschatz@gmail.com>, "Patricia Case" <pattycase@aol.com>, "Cheryl Nakamura" <CNakamura@rmhawaii.com>, "Bill Yuen" <billyuen@cymlaw.com>, "Randall W. Wulff" <rwulff@wqsadr.com>, "Karen Spiller" <karen.spiller@baesystems.com>, "Andrew Killgore" <akillgore@wrmea.com>, "Patrick Leahy" <senator_leahy@leahy.senate.gov>, "Pamela A. McCullough" <HONOLULU@FBI.GOV>, "James Duke Aiona" <ltgov@hawaii.gov>, "Ken Conklin" <ken_conklin@yahoo.com>, "William H. Donaldson" <enforcement@sec.gov>, "Ian Lind" <diary@ilind.net>, "Jim Terrack" <tnthawaii@aol.com>, "Andrew Walden" <hfpeditor@email.com>, "All Senators" <sens@Capitol.hawaii.gov>, "All Representatives" <reps@Capitol.hawaii.gov>, "Thomas Fitton" <info@judicialwatch.org>, "Stew Webb" <stewwebb@stewwebb.com>, "Judson Witham" <jurisnot@yahoo.com>, "J C Shannon" <Hapa1234@aol.com>, "Jeff Biener" <jeffandmary@ozarkopathy.org>, "V K Durham" <vkdtdht@pionet.net>, "Richard Grove" <Richard@8thEstate.com>, "Bradley Tamm" <btamm@hawaii.rr.com>, "Susan Tius" <STius@rmhawaii.com>, "Paul Alston" <palston@ahfi.com>, "John Goemans" <wip@kamuela.com>, "William K Slate" <Websitemail@adr.org>, "Lissa Andrews" <landrews@rmhawaii.com>, "John D. Finnegan" <info@chubb.com>, "Terry Mullen" <tmullen@johnmullen.com>, "Margery Bronster" <info@bchlaw.net>, "Michael N. Tanoue" <mtanoue@paclawgroup.com>, "Neil Ambercrombie" <Neil.Abercrombie@mail.house.gov>, "Lyn Flanigan Anzai" <lflanigan@hsba.org>, "Lorraine Inouye" <seninouye@Capitol.hawaii.gov>, "Samuel P. King" <leslie_sai@hid.uscourts.gov>, "Arthur Rath" <imua@spamarrest.com>, "Randall Roth" <rroth@hawaii.edu>, "Rick Daysog" <rdaysog@honoluluadvertiser.com>, "Jim Dooley" <jdooley@honoluluadvertiser.com>, "Robin Campaniano" <aigh001@aighawaii.com>, "Blossom Tong" <blossom.d.tong@marsh.com>, "Sammye Richardson" <sammyerichardson@yahoo.com>, "Daniel Hopsicker" <madcownews@gmail.com>, "Richard L Righter" <righterwmx@aol.com>, "Dirk Kempthorne" <webteam@ios.doi.gov>, "Jeffrey Sia" <Jeff.Sia@excite.com>, "Jim Babka" <downsizer-dispatch@downsizedc.org>, "Truth" <truth@grandecom.net>, "J. C. Jones" <JCJJONES@aol.com>, "Dane Field" <danefl@gucl.com>, "Jeffrey Watanabe" <jwatanabe@wik.com>

Message contains attachments

LT var 6-24-08.pdf (112KB)

Please see attachment

STEVEN GUTTMAN

Kessner Umebayashi Bain & Matsunaga
220 South King Street, Suite 1900
Honolulu, Hawaii 96813

Tel. 808.536-1900

~ ~ ~

NEW DISCOVERY - 06/13/08: DAVID FARMER HAS UNDISCLOSED CONFLICTS OF INTEREST WITH THE ALOHA AIRLINES BANKRUPTCY CASE, JUDGE LLOYD KING, JUDGE ROBERT FARIS, DAVID BANMILLER, JEFFREY KESSLER, DANE FIELD, CAROL MURANAKA, others...:

June 13, 2008

No $600,000 bonus

for Aloha's ex-CEO

Judge rejects request, saying airline's
collapse doesn't merit windfall

BY RICK DAYSOG, Advertiser Staff Writer

U.S. Bankruptcy Judge Lloyd King yesterday rejected a bonus request of up to $600,000 for former Aloha Airlines CEO David Banmiller, saying Banmiller should not "make a windfall off a collapse of the company."

Aloha, the state's No. 2 carrier, shut down its passenger service on March 31 and laid off 1,900 workers with little prior warning.

When an attorney argued it would be fair to pay a bonus to Banmiller and former Aloha Chief Financial Officer Jeffrey Kessler as they work to sell parts of the company, King said:

"I don't think fairness is an appropriate thing to discuss unless you want to talk about fairness to people who lost their jobs on virtually no notice (and) the hardship that has been imposed upon thousands of people. Now we have the top insiders potentially making a big score on this case. I think that's a very ugly aspect of this motion.

"It simply looks bad when the people who are with the company can make more money when it's going out of business than when it is a going concern."

Last month, the airline's court-appointed bankruptcy trustee, Dane Field, proposed paying Banmiller and Kessler incentives for helping sell off the carrier's assets. Under the plan, the two would get $50,000 each if the sale of Aloha's air cargo operations, contract services division and other assets fetches $19.25 million or more.

The two could receive as much as $600,000 each if the sale of Aloha's remaining assets fetches more than $26.5 million.

Those payments would be made by Aloha's chief lender GMAC Commercial Finance LLC from the proceeds of the asset sales.

The bonuses are on top of the $500 an hour that Banmiller and Kessler are now being paid to help the airline sell off its assets. The hourly pay is capped at $25,000 a month.

Prior to the bankruptcy, Banmiller received $500,000 a year in base salary as Aloha's CEO. When hired as Aloha's CFO in 2005, Kessler and his Atlanta-based firm Tatum CFO Partners received $3,000 a week, or $156,000 a year.

When reached by phone yesterday, Banmiller and Kessler declined to comment.

Others fared poorly

During yesterday's hearing, King questioned why Banmiller and Kessler should receive a bonus when they were already being paid $500 an hour. He also asked why other airline industry consultants couldn't have been hired to do the same work.

"Should Mr. Banmiller and Mr. Kessler be singled out for such favorable treatment in a Chapter 7 (bankruptcy) case where the other employees of the company have come out so poorly?" King said.

Jim Wagner, attorney for Field, said his client played an important role in selling Aloha's cargo and contract services units, which saved more than 1,400 jobs and preserved a business that handles more than 85 percent of all air freight between O'ahu and the Neighbor Islands.

'working very hard'

Aloha Cargo was sold to Seattle-based Saltchuk Resources Inc. for $10.5 million and the contract services unit was sold to Los Angeles-based Pacific Air Cargo for $2.05 million.

"I think Mr. Banmiller or Mr. Kessler have been working very hard in good faith toward liquidating the estate's assets," Wagner said.

Douglas Lipke, an attorney for GMAC Commercial Finance LLC, said Banmiller's and Kessler's institutional memory are invaluable. They have extensive contacts in the airline industry and have the best handle on the value of assets, such as the company's receivables, Lipke said.

Former Aloha pilot John Riddel said the judge did the right thing in rejecting the bonus plan. Riddel said that many of the pilots who continued to fly Aloha's cargo planes after March 31 have not yet received their full pay.

Some are still owed about half their pay, Riddel said.

"We were improperly underpaid," he said.

The Honolulu Advertiser

~ ~ ~

NEW DISCOVERY (05-02-08): Judge Robert Faris’ undisclosed conflicting relationships with members of the Hawaii Judiciary Selection Commission:

April 20, 2000

Trust played role in effort

to fund Ige Campaign

Campaign laws could have
been violated and it could
have lost its tax-exempt status

By Rick Daysog, Star-Bulletin

Kamehameha Schools coordinated political donations from its outside lawyers to state Sen. Marshall Ige's campaign in what could be a violation of campaign spending laws.

Records subpoenaed by the attorney general's office show that the $6 billion charitable trust played a role in the 1994 campaign contributions to Ige from attorneys C. Michael Heihre and Cheryl Nakamura and the law firms of Ashford & Wriston, Dwyer Imanaka Schraff Kudo Meyer & Kudo and Ching Yuen & Morikawa.

The documents -- discovered last year in the office of former trust manager Namlyn Snow -- include binders containing detailed logs of the attorneys' contributions to the Ige campaign, as well as photocopies of canceled checks to pay for the contributions.

Each attorney or firm contributed $250, for a total of $1,250. All of the checks were received by the Ige campaign on Aug. 17, 1994, and were deposited together in the campaign's bank account on the following day, suggesting that the contributions were bundled by Bishop Estate representatives.

Trust attorneys familiar with the documents said it was clear that Snow, who died last year, had a part in obtaining the donations.

The lawyers added that the estate's interim board of trustees turned over the documents to the attorney general's office and is complying with the state's investigation.

On Monday, the Star-Bulletin reported that an investigation by the attorney general's office had found that the estate engaged in a massive attempt to influence legislation and direct tens of thousands of dollars to isle politicians during the tenure of previous board members Richard "Dickie" Wong, Henry Peters, Lokelani Lindsey, Gerard Jervis and Oswald Stender.

The findings of the attorney general's inquiry, along with documents relating to the law firms' contributions to the Ige campaign, were turned over to the state Campaign Spending Commission last week, which has opened a separate investigation of the trust.

Bob Watada, executive director of the state Campaign Spending Commission, also declined to discuss the law firms' contributions to Ige. But speaking generally, Watada said bundling of contributions could be seen as a campaign contribution made under a false name, which is illegal.

Federal law also bars tax-exempt trusts from making campaign contributions or taking part in a political election. Violations could lead to the loss of a charity's tax-exempt status.

The latest disclosure comes as Ige is facing misdemeanor charges for alleged campaign finance abuses. The charges stem from an alleged campaign laundering scheme involving Bishop Estate's architecture and engineering firms. Ige has pleaded not guilty, and a trial is scheduled for next month.

Birney Bervar, Ige's attorney, declined comment on the latest development involving his client's campaign finances.

Attorneys with the Ashford & Wriston and Dwyer Imanaka firms had no response, while Bill Yuen of the Ching Yuen firm said he could not recall the circumstances of the contributions.

Nakamura, who does civil litigation work for the trust at the law firm of Rush Moore Craven Sutton Morry & Beh, said she remembers purchasing the fund-raiser tickets and attending the event with her parents. Nakamura, who lives in Ige's district, added that she may have purchased the tickets with the assistance of Bishop Estate personnel.

Heihre, formerly known as C. Michael Hare, said his donation to Ige was a personal contribution on his own checking account. But Heihre, a partner in the Cades Schutte Fleming & Wright firm and former chairman of the state Judicial Selection Commission, said he could not recall if he discussed his contribution to Ige with Kamehameha Schools personnel.

Each of the law firms that contributed to the Ige campaign has billed the trust tens of thousands of dollars each year for legal work. Last year, the estate paid the Cades Schutte firm about $1.8 million.

Bishop Estate archive

http://starbulletin.com/2000/04/20/news/index.html

~ ~ ~

March 3, 2004

Lingle gets recommendations for two judgeships

Pacific Business News (Honolulu)

Gov. Linda Lingle has released two lists provided to her by the Judicial Selection Commission from which she will make one appointment to the Circuit Court of the First Circuit to fill the vacancy created by the Dec. 31 retirement of Dan Kochi.

The other appointment will be to fill a vacancy created by the addition of a seventh associate judge to the Intermediate Court of Appeals, the governor's office said Wednesday.

"In her continuing effort to maintain openness in her administration, Gov. Lingle has again elected to make the lists available prior to making the appointments," the governor's office said in a statement.

Nominees to fill a vacancy in the Circuit Court of the First Circuit:

Bert Ayabe.

James Hershey.

Ronette Kawakami.

Gerald Kibe.

Dale Lee.

Michael Tanigawa.

Nominees to fill the vacancy of Associate Judge, Intermediate Court of Appeals:

Alexa Fujise.

Susan Ichinose.

Victoria Marks.

Richard Perkins.

Michael Town.

Frances Wong.

The commission does not rank the candidates. Lingle has 30 days from receipt of the lists to make her selections. The governor's office invited public comment to Governor.Lingle@hawaii.gov or by fax to (808) 586-0006, by March 19.

~ ~ ~

Board Minutes December 2007

MINUTES
HAWAII STATE BAR ASSOCIATION
BOARD MEETING

1132 Bishop Street, Suite 906
Honolulu, HI 96813

Thursday, December 20, 2007, 11:30 a.m.

CALL TO ORDER

President Jeffrey Portnoy called the meeting to order at 11:40 a.m. with a quorum present. The following persons were present for all or part of the meeting:

Officers Present

Jeffrey Portnoy

Jeffrey Sia

Hugh Jones (by phone)

Robert Godbey

Directors Present

Nathan Aipa

Roxann Bulman (by phone)

Jackie Erickson (by phone)

Gregory Frey

Geraldine Hasegawa

Louise Ing

Ronette Kawakami

Carol Kitaoka

Steven Songstad (by phone)

Trudy Burns Stone

Suzanne Terada

Jodi Kimura Yi

Nichole Shimamoto

Board Members Absent

Alfred Castillo

Steven Chow

Janice Kim

Others Present

James Branham

Darren Ching

Rai Saint Chu

Rosemary Fazio

Mark Gallagher

Michael Gibson

Joanne Ha’o

Jill Hasegawa

Philip Hellreich

Susan Ichinose

Shelton Jim On

James Kawachika

Ralph La Fountaine

Catherine Levinson

Douglas Moore

Mark Recktenwald

HSBA Staff

Lyn Flanigan

Iris Ito

Debra White

Hisae Ishii-Chang

- - -

... e. Judicial Selection Commission – JSC Chair Rosemary Fazio and JSC members Philip Hellreich, Susan Ichinose, Shelton Jim On, and Ralph La Fountaine were present to describe the JSC procedures. Ms. Fazio shared JSC concerns over HSBA’s involvement in the judicial selection process. She referred to an earlier report by the American Judicature Society which stated that it would be more helpful if HSBA gathered comments on the list of judicial candidates which are presented to the appointing authority by the JSC, an issue which has already been addressed by the HSBA Board. Ms. Ichinose stated that JSC is doing more now in the way of trying to get more applicants, visiting neighbor islands to discuss the judicial selection process, working on an electronic application form, etc. President Portnoy welcomed the HSBA-elected representatives on the JSC to come to board meetings more often and report on its activities. ...

EXECUTIVE DIRECTOR’S REPORTMs. Flanigan encouraged board members to refer to the HSBA website for all of its activities and even links to the Judiciary’s opinions/calendar. She reported that in 2007, fifty CLE programs were presented and 101 CLE hours offered. She also commented that there were many questions and much confusion on the registration forms, especially question 5 regarding pro bono reporting and question 6 regarding professional liability insurance reporting....

b. Board Procedures on Judicial Appointments – Board members who agreed to review the current board procedures on judicial/executive appointments and present recommendations to improve upon those procedures have met once and will continue to work on proposed amendments to the board procedures.

c. Proposed Amendment to Hawaii Rules of Professional Conduct Rule 7.2 (see agenda item 6.c. and Exhibit C) - Ms. Flanigan reported HSBA is awaiting specific language changes from the Disciplinary Board on this proposed rule that would allow a percentage fee assessment for not-for-profit lawyer referral services....

7. NEW BUSINESS

a. Access to Justice Report (see agenda item 7.a. and Exhibits D and E) - Delivery of Legal Services to the Public Committee Co-chair Mike Gibson presented the proposed resolution of the Access to Justice Hui and asked for HSBA’s support. He noted that results of the legal needs assessment conducted by the Hui indicate that 80% of the legal needs of the poor in Hawaii are unmet.

Action taken: After some discussion, a motion was made, seconded, and carried without opposition to support the proposed resolution of the Access to Justice Report. Ms. Flanigan commented that this is a major commitment of the Board, strategic plan, and staff....

http://www.hsba.org/minutesdec07.aspx

~ ~ ~

NEW DISCOVERY (04-12-08):

April 12, 2008

David C. Farmer, Esq.
Office of the United States Trustee
c/o Steven Guttman, Esq., Kessner Duca Umebayashi, et al.
220 S. King Street, Floor 10
Honolulu, HI 96813

Re:     99-04339 - David C. Farmer, Trustee vs. Bobby N. Harmon
Ref. New Exhibit: “THE DIRTY MILLIONS FOR ARMAGEDDON”

Dear Mr. Farmer:

Due to new discoveries regarding the Integrated Resources securities fraud and illegal U.S. political campaign funding by foreign nationals (Israel), I am adding the subject Exhibit. You will find this new Exhibit and related witness descriptions at:

http://www.kycbs.net/Dirty-Millions.htm

http://www.kycbs.net/CV05-00030-Witness-Lingle-Linda.htm

http://www.kycbs.net/CV05-00030-Witness-McCain-John.htm

http://www.kycbs.net/CV05-00030-Witness-Kissinger-Henry.htm

http://www.kycbs.net/CV05-00030-Witness-Black-Conrad.htm

http://www.kycbs.net/CV05-00030-Witness-Farmer-David.htm

Mr. Farmer, I again suggest that we try to resolve this matter through negotiation rather that your continuing indefinitely this illegal SLAPP lawsuit.

Very truly yours,

 

Bobby N. Harmon, CPCU, ARM

cc:      U.S. Attorney General Michael Mukasey
E-mail: <
AskDOJ@usdoj.gov>

Curtis Ching, Office of the United States Trustee
Fax: (808) 522-8156

~ ~ ~

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 specifically asked 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

~ ~ ~

March 30, 2008

Aloha Airlines shutting down;


Monday last day of operations

Advertiser Staff

Aloha Airlines announced today that it will be shutting its inter-island and trans-Pacific passenger flight operations. Aloha's last day of operations will be Monday.

On that day Aloha will operate its schedule with the exception of flights from Hawaii to the West Coast and flights from Orange County to Reno and Sacramento and Oakland to Las Vegas.

Effective immediately, Aloha will stop selling tickets for travel beyond tomorrow.

The shutdown will affect about 1,800 employees.

"This is an incredibly dark day for Hawaii," said David Benmiller [sic], Aloha's president and chief executive officer.

"Despite the groundswell of support from the community and our elected officials, we simply ran out of time to find a qualified buyer or secure continued financing for our passenger business. We had no choice but to take this action."

www.honoluluadvertiser.com

~ ~ ~

< < < FLASHBACK < < <

July 22, 2005

Aloha Airlines chief


to earn $497,400

By Rick Daysog, Advertiser Staff Writer

Aloha Airlines Inc. CEO David Banmiller will earn about $500,000 this year and could receive up to $1 million in severance should the airline emerge from bankruptcy under new ownership, according to documents filed in U.S. Bankruptcy Court.

Banmiller will receive an annual base salary of $455,400 plus annual housing expenses of at least $42,000, the airline said in documents filed Wednesday.

Aloha's filing — which provides the first public glimpse into the pay of the airline's top executive — revealed that Banmiller owns 5 percent of the privately held airline and could receive more than $1 million in severance pay over two years should Aloha emerge from bankruptcy under new investors. As a privately held company, Aloha has not been required to report such information in public filings with the Securities and Exchange Commission.

Aloha also said Banmiller could seek a success fee when the company completes its reorganization. A success fee, the details of which are yet to be determined, would be subject to the bankruptcy court's review.

Banmiller's compensation package was contained in a filing seeking bankruptcy court approval for his employment contract. The airline negotiated Banmiller's contract in October but needs court approval to assume his contract.

Bankruptcy Judge Robert Faris has scheduled a hearing Tuesday on Banmiller's contract.

Aloha said Banmiller's compensation was reasonable, given his experience in the airline business and his expertise in restructuring distressed companies.

Banmiller, who was named Aloha's chief executive officer in November, has more than three decades of experience in the airline industry. He previously served as president and CEO of Sun Country Airlines and Pan American World Airways. He also was president and chief operating officer of Air Cal before the company was acquired by American Airlines.

Aloha said Banmiller and other top executives have seen their pay reduced by 20 percent since the bankruptcy and added that its chief executive likely would lose his post should the company emerge from bankruptcy under new investors.

"Mr. Banmiller's contract is reasonable for an executive of his caliber," said Stephanie Ackerman, Aloha's senior vice president for public relations and government affairs.

In its filing, Aloha said Banmiller's annual compensation is well below that of his peers on the Mainland, including the chief executives of United Airlines and American Airlines who each received more than $1 million last year.

The airline also compared Banmiller's pay with that of his predecessor, Glenn Zander, who was paid $500,000 a year in salary and housing allowance, and former Hawaiian Airlines bankruptcy trustee Joshua Gotbaum, who received $720,000 in annual salary, housing and living expenses.

Gotbaum's pay figures did not include a success fee, which he is entitled to seek for steering Hawaiian out of bankruptcy. He has not yet applied for the fee but has until next month to do so.

Hawaiian, which emerged from bankruptcy protection in June, had no immediate comment on Aloha's filing.

Aloha, the state's second largest airline with more than 3,600 employees, filed for bankruptcy protection in December. The company is searching for new investors that will help it get out of bankruptcy.

Banmiller's pay, along with the compensation of other top executives, has been a sore point for the airline's unionized workers, who say they have made significant concessions during the past year.

Daniel Katz, attorney for the Air Line Pilots Association, said he plans to file an objection to Banmiller's contract later today. The pilots, who have given up more than $20 million in concessions, previously criticized the executive packages as extravagant.

"We object to these benefits for executives while the rank and file are getting cuts in pay," Katz said.

* * *

A picture is worth a thousand words...

http://starbulletin.com/2006/11/09/news/berger.html

http://starbulletin.com/2006/11/09/news/artb5x.jpg

www.kycbs.net/Aloha-Air-Bankruptcy.mht

www.kycbs.net/Exhibit-HA.htm ~ ~ ~

NEW DISCOVERY (03/18/08) - David Farmer is the Trustee for Mid-Pac Lumber Company; with original bankruptcy judge being Judge Lloyd King; with current judge being Robert Faris; and with major creditor being lessor, Kamehameha Schools/Bishop Estate:

http://starbulletin.com/2000/02/17/business/story2.html

www.kycbs.net/Bankruptcy-Buzzards.htm

www.kycbs.net/Confessions.htm

www.kycbs.net/RICO-BH.htm

www.kycbs.net/CV05-00030-Witness-Farmer-David.htm

www.kycbs.net/CV05-00030-Witness-King-Lloyd.htm

www.kycbs.net/CV05-00030-Witness-Faris-Robert.htm

www.kycbs.net/CV05-00030-Witness-Fuqua-Judith.htm

~ ~ ~

NEW DISCOVERY (03/15/08): Undisclosed conflicts of interests between Judge Robert Faris, David Farmer (Attorney for Aloha Airlines), Judge Michael Seabright, David Banmiller, M. Michelle Burns (CEO for Mercer Consulting), Hillary Clinton, Bill Clinton, Colbert Matsumoto, Jeffrey Watanabe, Louise Ing, Paul Alston, John Waihee, Judith Neustadter Fuqua, Earl Anzai, Lyn Anzai, Michael Boyd, and other witnesses, relating to the bankruptcies of Hawaiian Airlines and Aloha Airlines:

MEET M. MICHELLE BURNS

M. Michele Burns, age 50, is chairwoman and chief executive officer of Mercer. Ms. Burns joined MMC as executive vice president on March 1, 2006, assumed the position of chief financial officer of MMC on March 31, 2006 and moved to her current position with Mercer on September 25, 2006.

Prior to joining MMC, Ms. Burns was executive vice president and chief financial officer since May 2004, and chief restructuring officer, and chief financial officer since August 2004, of Mirant Corporation, an energy company, following the company’s bankruptcy filing in 2003.

Prior to joining Mirant, she was executive vice president and chief financial officer of Delta Air Lines, Inc. from August 2000 to April 2004. She held various other positions in the finance and tax departments of Delta beginning in January 1999. Delta filed for protection under Chapter 11 of the United States Bankruptcy Code in September 2005.

M. Michelle Burns, currently a director of Wal-Mart Stores, Inc. and Cisco Systems, Inc., she previously served as executive vice president.

For Wal-Mart Stores, Inc.:

Cash Compensation (FY December 2006)

Salary: $625,000

Bonus: $750,000

Latest FY other long-term comp. $945,832

Total: $2,320,832

~ ~ ~

From wikipedia:

WAL-MART

Financial

In 2006, Wal-Mart was 67th most profitable corporation (profits divided by total revenue), behind retailers Home Depot, Dell, and Target, and ahead of Costco and Kroger. For the fiscal year ending January 31, 2006, Wal-Mart reported a net income of $12.178 billion on $344.992 billion of sales revenue (3.5% profit margin). For the fiscal year ending January 31, 2006, Wal-Mart's international operations accounted for about 20.1% of total sales. As of Mar 06, 2008, net sales for the 4-week period ending Feb 29, 2008 was $29.1 billion, up 8.9% from the previous year's results.

Governance

Wal-Mart is governed by a fifteen-member Board of Directors, which is elected annually by shareholders. S. Robson Walton, the eldest son of founder Sam Walton, serves as Chairman of the Board. Lee Scott, the Chief Executive Officer, serves on the board as well. Other members of the board include Aída Álvarez, James Breyer, M. Michele Burns, James Cash, Roger Corbett, Douglas N. Daft, David Glass, Roland A. Hernandez, Allen Questrom, Jack Shewmaker, Jim Walton, Christopher J. Williams, and Linda S. Wolf.

Notable former members of the board include Hillary Clinton (1985–1992) and Tom Coughlin (2003–2004), the latter having served as Vice Chairman. Clinton left the board before the 1992 U.S. Presidential Election, and Coughlin left in December 2005 after pleading guilty to wire fraud and tax evasion for stealing hundreds of thousands of dollars from Wal-Mart. On August 11, 2006, he was sentenced to 27 months of home confinement, five years of probation, and ordered to pay $411,000 in restitution.

http://en.wikipedia.org/wiki/Walmart

~ ~ ~

NEW DISCOVERY (03/12/08): Undisclosed conflicts of interests between Judge Robert Faris, David Farmer (Attorney for Aloha Airlines), Judge Michael Seabright, David Banmiller, Michelle Burns (CEO for Mercer Consulting), and other witnesses, relating to the bankruptcies of Hawaiian Airlines and Aloha Airlines:

October 31, 2007

Hawaii air fares may rise after $80M ruling

By Rick Daysog. Advertiser Staff Writer

Interisland airline go!, whose low prices started a fare war, has lost a court ruling that might prompt it to leave Hawai'i, industry analysts said.

If go! leaves, interisland airfares will likely rise, the analysts predicted.

A judge yesterday ruled that go!'s parent, Mesa Air Group, must pay $80 million to Hawaiian Airlines for misusing confidential business information.

But U.S. Bankruptcy Judge Robert Faris rejected Hawaiian's request to bar go! from selling interisland tickets for one year.

Mesa said it will likely appeal the decision and said it remained committed to the Hawai'i market. But analysts said that if the ruling stands, it will likely affect whether go! continues to offer $19, $29 and $39 one-way fares, or operate at all in Hawai'i.

"This definitely hurts Mesa," said Nick Capuano, managing director and head of equity research at Los Angeles-based Imperial Capital LLC, whose firm follows Hawaiian.

"It's now less likely that they will slug it out in a money-losing market."

The $80 million judgment is more than double the $34 million that Mesa earned for all of 2006 and is equivalent to about $2.78 for each outstanding share of Mesa's stock.

Since the June 2006 launch of go!, Mesa's cash holdings have fallen from about $345 million to about $198 million, according to a recent filing with the Securities and Exchange Commission.

Local airline industry historian Peter Forman said he believes the ruling will likely hasten Mesa's exodus from Hawai'i.

"I would think that this puts more pressure on Mesa to look at finding a settlement with Hawaiian for an exit strategy," Forman said.

The judge said Mesa used proprietary information it obtained from Hawaiian Airlines to "gain a competitive advantage ... to enter the market for Hawai'i interisland air transportation services."

"In this case, the award of money damages adequately redresses the harm suffered by (Hawaiian Airlines) as a result of Mesa's breach of the confidentiality agreement," Faris wrote in a 14-page finding accompanying his ruling.

REACTIONS TO RULING

Mark Dunkerley, Hawaiian's president and CEO, welcomed the judge's decision.

"Today's ruling is a triumph for fair competition and ethics over dishonesty and illegal behavior," he said.

"Nobody benefits when a company like Mesa misuses confidential information to gain an unfair competitive advantage, then lies about it and destroys evidence."

Jonathan Ornstein, Mesa's chief executive officer, said the likelihood of an appeal "is very high."

Ornstein said his company remains "more committed" to the interisland market in light of yesterday's ruling.

But should Mesa decide to leave Hawai'i in the future, Faris' ruling could cost consumers "hundreds of millions of dollars," Ornstein said.

He said Faris "basically ruled that the actions of one person were enough to punish" Mesa, its 5,000 employees and Hawai'i's residents and visitors.

He was referring to Mesa Chief Financial Officer Peter Murnane, who downloaded thousands of pages of proprietary information about Hawaiian's business, then destroyed the records, saying he thought he was deleting pornography from his work computers.

Murnane has since been placed on a 90-day leave of absence by Mesa's board.

"We are extremely disappointed, and that judge has put the interest of Hawaiian above the interests of the people of Hawai'i," Ornstein said.

Hawaiian sued Phoenix-based Mesa last year for $173 million in damages, alleging that Mesa used confidential financial data from Hawaiian to set up go! airline.

POSSIBILITY OF APPEAL

The ruling came after yesterday's close of the stock market. Mesa's stock closed at $5.10 on the Nasdaq market yesterday, up 16 cents. Shares of Hawaiian rose 61 cents to $5 per share on the American Stock Exchange in after-hours trading yesterday.

Mesa has up to 10 days to appeal Faris' decision with the U.S. District Court or with the bankruptcy appellate panel of the 9th U.S. Circuit Court of Appeals in California.

Such an appeal would require Mesa to post a bond for the full $80 million, unless Faris were to grant Mesa a stay pending the outcome of such an appeal.

Besides Hawaiian's lawsuit, Aloha Airlines has filed an antitrust lawsuit in U.S District Court against Mesa, alleging that Mesa used confidential information to drive it out of business.

"Aloha believes it is important for all companies serving the people of Hawai'i to conduct their business affairs with the highest ethical and legal standards, and the court today found that Mesa did not meet that standard of conduct," said David Banmiller, Aloha's president and chief executive officer.

"Contrary to what Mesa has been saying, today the court confirmed what we have been saying all along, that Mesa's actions as a new entrant have been inconsistent with fair play."

In its February 2006 lawsuit, Hawaiian alleged that Mesa received more than 2,000 pages of confidential financial information when Mesa expressed an interest in acquiring Hawaiian in 2004 while Hawaiian was in bankruptcy.

Mesa, whose bid was rejected, was supposed to return the documents or destroy them but didn't, Hawaiian alleged. Hawaiian emerged from bankruptcy protection in June 2005 under the ownership of California-based Ranch Capital LLC.

Mesa previously has argued that losses suffered by Hawaiian after go!'s entry were largely self-inflicted because the local airline increased capacity in response to go!'s entry.

Mesa also has said that Hawaiian wants go! out of the market so it can increase fares.

Yesterday's ruling comes after two weeks of court hearings from Sept. 25 to Oct. 4.

A 'MISADVENTURE'

During a pretrial hearing, Faris found that Mesa kept confidential information it was supposed to return or destroy; Mesa misused information it kept, and that was a substantial factor in Mesa's decision to enter the Hawai'i market.

In his findings of facts and conclusion of law, Faris cited about a half dozen confidential documents that Mesa misappropriated to start go! They include:

> Internal projections on Hawaiian Airlines' future operations and financial performance;

> Lists of contracts with the local airline's third-party vendors;

> Details of Hawaiian's expansion plans;

> The company's strategy for marketing to wholesale tour operators;

> Documents spelling out Hawaiian's contracts with its codeshare partners like American Airlines, Continental Airlines, Northwest Airlines and US Airways;

> Pricing policies, frequent flier programs and credit card alliances.

"A skilled and experienced expert in the airline business might have been able to make an 'educated guess' about some of these topics by drawing inferences from publicly available information," Faris wrote.

"These inferences would not have been as accurate and reliable as the information, which Mesa obtained directly from HA."

Scott Hamilton, a Washington state-based aviation industry consultant, called go! a "misadventure from the beginning."

RISING FARES PREDICTED

Hamilton said the interisland market could not sustain more than two major players, especially when fares are as low as $29 or $19.

He predicted that fares will return to where they were in 2005 when the local carriers were charging more than $79 each way if go! leaves the market.

"If indeed Mesa does decide to withdraw and shuts down go!, fares will go up the day go! shuts down, if not before," Hamilton said.

"There is no incentive to keep fares at present levels without go! in the market," he said.

Faris alluded to that prospect when he wrote:

"This situation cannot continue indefinitely; eventually fares must increase to a level that eliminates the market-wide losses. (It is highly unlikely that any of the three carriers could reduce its costs enough to eliminate its losses.)

"It is impossible to say with any decree of certainty, however, when this will occur or what the new fare level will be. It is also possible that another carrier could enter the market, holding fares down."

HOW EVENTS UNFOLDED

March 2003: Hawaiian Airlines files for bankruptcy protection.

April 2004: The federal bankruptcy court allows potential investors to study Hawaiian's books under a confidentiality agreement.

April to May 2004: Mesa downloads more than 60 documents, including more than 2,000 pages of proprietary information about Hawaiian's financial performance, projections and business strategy.

May 2004: Mesa is eliminated as a bidder for Hawaiian.

December 2004:
Aloha Airlines files for bankruptcy protection.

April 2005: Mesa starts looking into acquiring or forming a business alliance with Aloha. Mesa retains GCW Consulting, an Arlington, Va.-based aviation consulting firm, to "look at a possible acquisition or some other structure for entry into the Hawai'i market."

June 2005: Hawaiian Airlines exits bankruptcy protection under the ownership of California-based Ranch Capital LLC.

January 2006: Mesa's Chief Executive Officer Jonathan Ornstein tells investors that Mesa's decision to enter the interisland market was based on its review of Hawaiian and Aloha Airlines during their bankruptcy cases.

February 2006: Hawaiian sues Mesa to bar the company from operating in the interisland market for two years. Hawaiian alleges Mesa improperly used confidential data it received when Hawaiian was in bankruptcy. Hawaiian later reduces the length of the ban it seeks to one year.

March 2006: Mesa begins selling tickets for its June 9 launch of interisland carrier go!

March 2006: Mesa files countersuit, accusing Hawaiian of trying to illegally block competition.

June 2006: Mesa launches go!

September 2006: Hawaiian alleges Mesa tried to drive Aloha out of business and cites e-mails by Mesa Chief Financial Officer Peter Murnane. One e-mail says: "If we assume Aloha stays in market and in business forever, this project makes no sense. We definitely don't want to wait for them to die, rather we should be the ones who give them the last push."

October 2006: U.S. Bankruptcy
Judge Robert Faris rejects Hawaiian's request for a ban but says Mesa "probably breached the confidentiality agreement" by failing to return or destroy material it received. Faris also concludes that "at one time, Mesa hoped to drive Aloha out of business."

October 2006: Aloha sues Mesa, alleging that it misused confidential information in an attempt to drive Aloha out of business.

December 2006: Faris throws out Mesa's countersuit against Hawaiian.

August 2007: Hawaiian accuses Mesa CFO Murnane of destroying several computer files that included confidential Hawaiian material.

Yesterday: Faris orders Mesa to pay Hawaiian $80 million in damages for misusing confidential business information.

• • •

Postings at www.honoluluadvertiser.com

This is a representative sampling of comments posted at honoluluadvertiser.com after the go! airline ruling was announced:

go! just wanted to drive out Aloha or Hawaiian, then it would have raised prices for sure.

Dan, Honolulu

Please don't go, go! We need the "reasonable" fares to stay. Hawaiian and Aloha were gouging us for too long!

RCM, Honolulu

I think it is fair considering Mesa came in to put either Hawaiian or Aloha out of business using confidential information.

Nate

Mesa will go buh-bye,
Hawaii Superferry will go buh-bye,
Hawai'i consumers will suffer once again,
And the "ol' boy network" will live happily ever after.

Largo, Honolulu

http://the.honoluluadvertiser.com/article/2007/Oct/31/

~ ~ ~

NEW DISCOVERY (03/14/08):

August 3, 2001

Veteran ad man’s agency files for bankruptcy

The Schiller Group, saying
it couldn't overcome the loss
of 2 major accounts,
declares Chapter 7

By Erika Engle, Star-Bulletin

The Schiller Group Ltd. advertising agency has filed for Chapter 7 bankruptcy, listing nearly $1 million in debt.

The move to seek protection from creditors was sparked by a breach of contract lawsuit filed May 10 by WOR Radio Network in New York City, one of the agency's 61 creditors, according to President and CEO Martin Schiller.

Financial problems for the Honolulu-based agency began in 1999 with the loss of two major accounts, Castle & Cooke Homes and the Island of Lanai -- accounts Schiller described as having different decision makers but the same owner.

"We lost those accounts for the wrong reasons," he said, "and for 48 hours I did not have a feel for whether the agency would survive. It was devastating not just in terms of revenue, but for morale."

According to ad agency attorney Robert Faris, Schiller "has tried for a year and a half to reach a proposal that creditors can accept.

"It's a situation where they were asked to take a substantial discount and of course none were obligated to, but nearly all agreed," he said. In the coming days, the bankruptcy court will determine a date for and send out notices of a creditors' meeting, said Faris, of Gelber Gelber Ingersoll Klevansky & Faris.

The bankruptcy filing lists assets of $75,000 and debts of $978,000....

Beginning today the 61 creditors will be notified of the filing by mail, personal phone calls and or visits from Schiller. In the letter, Schiller wrote, "Chapter 7 was never my first, second or third choice when the company started having financial problems. The staff over the last two years has been working to turn the agency around. And we did. We were awarded new business along the way."

Among the clients the agency added this year was SCD International, developer for the Peninsula at Hawaii Kai and the Waikoloa Colony Villas. Other current clients include AT&T, the Hawaii Visitors and Convention Bureau, the Polynesian Cultural Center, Molokai Ranch, Saturn Autos, the Hyatt Regency Maui and Radisson Waikiki.

Ken Berry, executive vice president of the Star-Bulletin and MidWeek, said "I'm a Marty Schiller fan. I think he tried real hard to overcome some adversity and apparently he didn't. I'm disappointed to hear this."

Berry, among the creditors, was COO for MidWeek prior to its purchase by Black Press Ltd. earlier this year, and is a signatory to the Schiller agreement.

"Marty's a really good ad man," Berry said, "He's been continuing to send a lot of business our way."

"I guess this could have happened to anyone," he said.

TSG's seven employees were to be notified yesterday that what they had been told was a possibility, had come to pass.

http://starbulletin.com/2001/08/03/business/story2.html

~ ~ ~

NEW DISCOVERY (03/10/08):

March 10, 2008

Replacing top judge is Lingle’s jurisdiction

Gov. Lingle will pick the next chief justice unless
the people alter the Constitution

By Ken Kobayashi, Star-Bulletin

Gov. Linda Lingle says she wants the next chief justice of the Hawaii Supreme Court to be a hard-working legal scholar who will not legislate from the bench.

Candidates would not be favored if they were prosecutors, "but it wouldn't hurt their chances, either," the Republican governor said in a recent interview with the Star-Bulletin.

Although Attorney General Mark Bennett has been mentioned in legal circles as a top contender, the governor said it is too early to mention any names.

But in explaining the qualities she would like to see in judges, Lingle made clear that she believes they should interpret laws and leave legislation to elected officials.

Her remarks suggest that her appointment of the state's next chief justice could be monumental for the five-member high court. Known for a long tradition of rendering "activist" decisions, the court has been hailed by civil rights advocates but criticized by others as going beyond reviewing and applying the laws.

Lingle's appointment would be the first time that a Republican governor would name a chief justice in more than 40 years. Democratic Gov. John Burns appointed William Richardson in 1966, and Democratic governors appointed the next two: Herman Lum and the current chief justice, Ronald Moon.

The only way Lingle would be prevented from making the appointment is if state lawmakers place on this fall's ballot -- and voters approve -- a proposed constitutional amendment to lift the mandatory retirement for judges who turn 70.

Unless the state Constitution is amended, Moon must retire when he turns 70 on Sept. 4, 2010, about three months before Lingle's term expires.

The state Senate approved a controversial measure last week that raises the mandatory retirement age to 80, and sent the proposal to the state House. But key senators acknowledge that it will be difficult for the amendment to pass because voters rejected a similar proposal in 2006 that eliminated the mandatory retirement provision. Voters rejected the amendment by 80,000 votes, 58 percent to 35 percent.

"It's an uphill battle," said Sen. Brian Taniguchi, Senate judiciary chairman. "I'm not going to die if the bill dies."

Senate President Colleen Hanabusa agreed with the prognosis. "I'm not sure it will make it out of the Legislature because we just put it on the ballot," she said.

Taniguchi maintained that he views the proposal as a civil rights issue against age discrimination and a "compromise" by retaining the retirement age but raising it to 80.

Opponents, including Lingle, contend the measure is aimed at preventing her from naming the next chief justice.

Bennett and City Prosecutor Peter Carlisle, who opposed the 2006 proposal, submitted testimony in opposition to the current measure before Taniguchi's committee last month.

The proposal's supporters include the Hawaii Government Employees Association and the Japanese American Citizens League.

Republican Sen. Fred Hemmings, who voted against the measure last week, said in an interview that the proposal was "petty politics at its worst."

"I think they (Democrats) will try to do whatever they can to put it on the ballot," he said.

Taniguchi said he believes Moon is doing an "all-right job," but said the motivation behind the measure is not to keep him as chief justice. The senator noted that Moon was a Republican before he got to the bench.

BETS ARE ON BENNETT

The speculation that Bennett will be Lingle's choice has been fueled by his role as a trusted adviser to the governor. In addition, his was one of three names Lingle submitted to the White House for a lifetime tenure as a U.S. district judge here. In 2005, President Bush chose Michael Seabright, now a federal judge, from the list.

The speculation prompted Taniguchi to ask Bennett at last month's hearing about the chief justice's job.

In an interview, Bennett gave the same answer he gave to the senator: If the job somehow opened up now, he would not apply for it.

"My plans right now are, when I'm done as attorney general, to return to private practice and/or teach," he said. "But I would not even begin to speculate about what my feelings might be in two years."

Lingle's appointment would be subject to Senate approval. The Democratic-dominated Senate has rejected some of her appointments, including Ted Hong to the Circuit Court and Randal Lee to the Intermediate Court of Appeals.

But if Lingle gets the names for Moon's replacement early in 2010 and her appointment is rejected, she would be able to name another person from a list of four to six names submitted by the Judicial Selection Commission.

If the Senate rejects all of her choices, the commission would chose the chief justice from its list, according to the state Constitution. The commission's selection would not be subject to Senate approval.

Hanabusa said "it's almost positive" that Bennett will be appointed by the governor. She said one of the criticisms is that he is sometimes almost "overzealous" in representing the administration over the legislative and judicial branches. Hanabusa cited his efforts against the mandatory retirement amendment that was placed before the voters by the Legislature in 2006.

"I think people are watching because they have concerns," she said.

Hemmings, however, said he is a "big fan" of Bennett and applauded him for his work with prosecutors and police in pushing for legislation. "It's hard to deny his success and record," Hemmings said.

Another name mentioned is Mark Recktenwald, a former assistant U.S. attorney who was Lingle's director of the Department of Commerce and Consumer Affairs before the governor named him chief judge of the Intermediate Court of Appeals last year.

Hanabusa said Recktenwald is considered a good administrator and would have support, but indicated senators might wait to see how he does as the chief appeals court judge.

Recktenwald said he has been chief judge for only about 10 months and is focused on doing a good job. "I haven't given consideration to anything else," he said.

SAME-SEX SHUTDOWN

Lingle's appointment would oversee a Hawaii Supreme Court whose history includes expanding the public's rights to beaches and surface waters; recognizing the rights of native Hawaiians go onto private property for traditional religious and food gathering practices; and striking down laws the court believed infringed on the rights of criminal defendants.

In its landmark and highly controversial case, the high court issued a 1993 decision that paved the way for same-sex marriages in Hawaii. That ruling prompted state lawmakers to complain that the court was creating new law, and it led to a constitutional amendment that essentially negated the ruling.

"I continue to try to reflect what the public would like to see in a judiciary, and that is a judiciary that really interprets the laws that elected people pass rather than try to make law as a judge from the bench," Lingle said.

Lingle notes that unlike the three previous Democratic governors, she is not a lawyer who might be familiar with judicial candidates. She suggests that helps bring a fresh prospective to her judicial appointments.

Because her appointments are for 10-year terms, the judges Lingle has selected -- and will select -- will remain on the bench for years after she leaves office.

Lingle said she wants her legacy to be that the courts will be a place where people "get a fair shake."

"I think the very highest achievement you can have for a judiciary is that the average citizen of a state or of a country will get fair treatment no matter who they are," she said.

http://starbulletin.com/2008/03/10/news/story03.html

~ ~ ~

Judicial Selection Commission

The Judicial Selection Commission reviews and evaluates applications for all judicial vacancies, and vote, by secret ballot, to select qualified nominees. Established by a 1978 state constitutional amendment, the Commission is governed by the Judicial Selection Commission Rules.

The names of the nominees are then forwarded to the appropriate appointing authority. The governor is the appointing authority to nominate judges of the Supreme Court, Intermediate Court of Appeals, and Circuit Court for an initial ten-year term. The governor selects appointees from a list of not less than four and not more than six names submitted by the Judicial Selection Commission. The commission submits a list of at least six names to the chief justice who nominates judges for district and district family court to six-year terms. All nominations are subject to confirmation by the state senate.

The Commission also determines whether a justice or judge shall be retained in office. The Commission publicizes the fact that a justice or judge is seeking retention so that all persons who might have an interest in the matter be informed of the opportunity to comment.

Comments about justices and judges seeking appointment or retention should be submitted to:

Contact Information:
Judicial Selection Commission
417 South King Street
Honolulu, Hawai`i 96813-2902
Telephone: (808) 538-5200

The Commission is composed of nine members, no more than four of whom may be lawyers. The members, who serve staggered six-year terms, are selected or elected as follows:

Chairperson

 

 

Rosemary T. Fazio

Chairperson

 

Philip Hellreich

Vice-Chairperson

 

Shelton G.W. Jim On

Secretary

 

 

 

 

Member

Term

Appointing/Electing Authority

Susan Ichinose

04/02/07 - 04/01/13

(Bar)

Frederick Okumura

04/02/07 - 04/01/13

(CJ)

Melvin I.Chiba

04/02/02 - 04/01/08

(Senate)

Rosemary T. Fazio

04/02/03 - 04/01/09

(Bar)

Thomas Fujikawa

04/02/03 - 04/01/09

(House)

Philip Hellreich

04/02/03 - 04/01/09

(Governor)

Shelton Jim On

04/02/05 - 04/01/11

(Governor)

Ralph R. LaFountaine

04/02/05 - 04/01/11

(House)

Sheri N. Sakamoto

04/02/05 - 04/01/11

(Senate)

Frederick T. Okumura

04/02/07 - 04/01/13

(CJ)

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JAIL 4 JUDGES

The Judicial Accountability Initiative Law, J.A.I.L., is a single-issue national grassroots organization designed to end the rampant and pervasive judicial corruption in the legal system of the United States. J.A.I.L. recognizes this can be achieved only through making the Judicial Branch of government answerable and accountable to an entity other than itself. At this time it isn't, resulting in the judiciary's arbitrary abuse of the doctrine of judicial immunity, leaving the People without recourse when their inherent rights are violated by judges.

~ ~ ~

"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men."

~ Lord Acton, in a letter to Bishop Mandell Creighton, 1887.

~ ~ ~

http://www.jail4judges.org/

Email (National Center): VictoryUSA@jail4judges.org

~ ~ ~

HAWAII CHAPTER

http://www.jail4judges.org/state_chapters/hi/index.html

Email (Hawaii): molokaiman@flex.com

~ ~ ~

NEW DISCOVERY - 02/18/08:

May 29, 2006

Trinity may buy bankrupt Waikiki Hyatt

Pacific Business News (Honolulu)

The new owner of The Kahala Resort is positioning itself as a potential bidder for the Hyatt Regency Waikiki Resort & Spa.

Trinity Investments, a Honolulu-based firm that has made substantial profits specializing in the purchase of hotels owned by cash-strapped Japanese companies, now holds the first and second mortgages on the Hyatt Regency Waikiki. The firm bought the mortgages in March, about a month after the Japanese hotel owner filed for Chapter 11 bankruptcy in court in Honolulu.

The owner, Azabu Buildings Co. Ltd., went into bankruptcy Feb. 1. The mortgages held by Trinity total $330 million, and mature Nov. 6. Trinity hopes to convert its mortgage claim to equity by then.

Meanwhile, Trinity also acquired C.K. Corp., one of the fee owners of the land under the hotel.

Since it was founded by former Amfac hotel executive Charles Sweeney and Honolulu attorney Jon Miho in 1997, Trinity has picked up distressed commercial and resort properties bought or built by Japanese companies in the 1980s, refreshed and repositioned them, then resold at a hefty profit. Trinity often approached the hotels' creditors directly, offering cash to take the properties off their books quickly.

Late last year, Trinity acquired the Kahala Mandarin Oriental from its financially troubled Japanese owner for $175 million. Trinity changed the name to The Kahala Resort and took over the hotel's management.

Trinity adopted a similar strategy when it acquired the Kea Lani on Maui, upgrading and managing the property until it was sold in 2001.

But acquiring the Hyatt property will be a complex and expensive proposition. Hotels are now one of the hottest segments in commercial real estate and unlike the late 1990s, no one is selling at a loss.

Azabu won a four-month extension last week from U.S. Bankruptcy Judge Robert Faris to file its reorganization plan. Its new due date is Oct. 1....

But before Azabu gets to draw up a reorganization plan there are several other pending matters, including the eligibility of the claims of Japanese creditors who forced Azabu into bankruptcy.

Azabu Buildings owes about $4.3 billion to 35 creditors in Japan. Its primary asset in Hawaii is the hotel, in addition to which it owns $6.2 million worth of property, including a leasehold interest in the King's Village Shopping Center behind the Hyatt. The center is not involved in the bankruptcy.

However, the company's Japanese creditors banded together and filed for an involuntary bankruptcy petition in Hawaii last November. Azabu forged an agreement with its creditors to withdraw their petition, and filed for voluntary Chapter 11 in February.

"Anticipated litigation in this case could delay the sale of the hotel and/or confirmation of a reorganization plan," said James Wagner, who represents Azabu, in a court filing.

Also, The Chuo Mitsui Trust and Banking Co., Azabu's Japanese banker, says it holds a $125 million unpaid claim.

Further complicating any deal is the lease of the land under the Hyatt. Azabu's lease runs until 2047, but it is required to renegotiate the rent for the next 10 years, starting next Jan. 1. At present, Azabu pays a total of $5 million in annual rent to three owners.

Another possible disruption would be the hotel's negotiations with its union, whose contracts expire June 30.

These significant issues, Azabu's attorneys have argued, stand in the way of a sale of the hotel or putting together a reorganization plan that maximizes its value.

Paul Alston, the Honolulu attorney who represents Chuo Mitsui and the two mortgage lenders that Trinity acquired, said the case can't be dragged on forever.

"The loans come due Nov. 6 and things can't wait," Alston said. "Nobody has made any decisions yet, because people still are unraveling the Gordian knot. But things need to start happening."

Alston said Trinity is looking at several options including buying the hotel or being part of Azabu's reorganization plan for the hotel.

Such complex cases are not new to Azabu, whose Hawaii properties have been dragged into court by Japanese creditors before.

In 1993, Chuo Mitsui foreclosed on the $850 million mortgage on the Hyatt Waikiki. In 1996, Chuo Mitsui and Azabu struck a deal, and the bank created two entities that refinanced the loans to $380 million.

These were the two entities that Trinity bought, giving them control of the Hyatt mortgages. Trinity executives did not respond to requests for comment.

In 1998, the bank foreclosed on the Maui Marriott Resort, another Azabu purchase during its $600 million buying spree between 1986 and 1990. Azabu had to sell that property, and ended up owing $125 million to the bank. It's been chipping away at that debt from the Waikiki hotel's earnings.

Judge Faris has allowed Azabu to stop payment to that account so that it can pay for administrative and bankruptcy costs.

http://pacific.bizjournals.com/pacific/stories/2006/05/29/story1.html

For more, GO TO > > > The Unholy Trinity; The Vultures in VMS Realty; Yakuza Doodle Dandies; Dirty Money, Dirty Politics & Bishop Estate; Paradise Paved

~ ~ ~

May 17, 2006

Corruption at the CIA

Hawaiian Hideaway?

by Rhonda Schwartz Reports, ABC News

Sources close to the widening probe of official corruption in Washington tell ABC News that investigators are studying travel records of expensive trips to Hawaii and Europe taken by top CIA official Dusty Foggo and San Diego defense contractor Brent Wilkes.

Prosecutors want to know who paid for the lavish trips to European castles and top end Hawaiian resorts, including this $7,000 a night Honolulu beachfront mansion, owned at one time by hair stylist super-star Paul Mitchell.

Wilkes, a close personal friend of Foggo is suspected of paying bribes to Congressman Duke Cunningham, who recently pled guilty in the corruption investigation.

* * * * *

To see the real estate ad - photos and video of the "Paul Mitchell" Estate - for the luxurious TRINITY vacation home rented for Wilkes and Foggo, click here:

http://www.hawaiianluxuryestaterentals.com/WEBS/Lanikai/104/PAULMITCHELLESTATE.html

* * * * *

http://blogs.abcnews.com/theblotter/2006/05/hawaiian_hideaw.html

~ ~ ~

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:

~ ~ ~

February 8, 2008

Kamehameha Schools settled lawsuit for $7M

By Jim Dooley, Advertiser Staff Writer

Kamehameha Schools paid $7 million to settle a lawsuit filed by an anonymous student who claimed the schools' Hawaiians-first admissions policy violates civil rights laws, according to an attorney involved in the case.

Terms of the confidential settlement have been a closely guarded secret since it was signed in May just before the U.S. Supreme Court was to decide whether to hear the case.

The settlement ended a four-year effort by a non-Hawaiian teenager, known only as John Doe, to enter the Kamehameha Schools system.

Attorney John Goemans — who planned the legal action, found the plaintiff and brought the case to Sacramento private attorney Eric Grant to litigate — revealed the amount of the settlement in an exclusive interview with The Advertiser.

"The amount of the settlement is important public information that should be disclosed by a charitable institution that receives tax-exempt status from the Internal Revenue Service," Goemans said in a telephone interview.

The lawsuit challenging the schools' admissions policy was the first case of its kind to reach the doors of the U.S. Supreme Court and stirred enormous controversy in Hawai'i.

Critics of the settlement pointed out that additional legal challenges could still be mounted against the admissions policy, and news of the $7 million that the schools paid could increase the chances of new lawsuits.

Local attorney David Rosen, who made news last year by actively seeking plaintiffs for a new challenge to the admissions policy, said yesterday he is preparing a suit against Kamehameha Schools.

Kamehameha Schools, previously known as Bishop Estate, is a nonprofit organization with assets of $7.7 billion.

Grant, appearing yesterday at a University of Hawai'i law school symposium on the lawsuit, known as John Doe vs. Kamehameha Schools, declined to discuss the settlement when told that Goemans had disclosed the $7 million figure.

Kamehameha Schools' lead attorney in the lawsuit, Kathleen Sullivan, a former dean of the Stanford University law school, also declined comment.

"Terms of the settlement are inviolate," said Sullivan, also a participant at the UH symposium yesterday.

Ann Botticelli, spokeswoman for the Kamehameha Schools board of trustees, also declined to comment on Goemans' statements or the size of the settlement.

The settlement says that anyone who discloses its contents is subject to a $2 million penalty, but Goemans said he was not a party to the agreement and never signed it.

Goemans, who is recovering from heart surgery, said yesterday that he was opposed to the $7 million settlement but that "it was the client's decision" to accept it.

PART OF TAX RECORD

Goemans said an attorney representing Grant breached the confidentiality clause by mailing a copy of the agreement to Goemans last year.

Goemans added that Kamehameha Schools must disclose details of the settlement on its 2007 tax return, which is due to be filed later this year, and on annual financial reports the charity is required to file with the state attorney general's office and with the state court.

Tax returns of nonprofit institutions such as Kamehameha Schools are public records under federal law. The institution's annual financial accountings — which date to its founding by Princess Bernice Pauahi Bishop in 1888 — are also open to the public.

Kamehameha operates three campuses — its flagship at Kapalama Heights on O'ahu, one on Maui and another on the Big Island — for the benefit of children of Hawaiian ancestry.

The institution plays a central role in Hawai'i society, in part because of its financial clout and in part because of its mission to educate children of Hawaiian ancestry. It is also the state's largest private landowner.

There are about 70,000 school-age children with Hawaiian blood, and 5,400 students were enrolled at Kamehameha's various schools last year. Kamehameha served 30,000 other children and adults through outreach programs and through its support of charter schools.

TO SUPREME COURT

Hawai'i federal Judge Alan Kay initially dismissed the John Doe lawsuit in November 2003, upholding the schools' argument that the admissions policy helped address cultural and socio-economic disadvantages that have beset many Hawaiians since the 1893 overthrow of the Hawaiian monarchy.

The plaintiffs appealed that decision to the 9th U.S. Circuit Court of Appeals, which overturned it in a three-judge decision in 2005. That ruling prompted protest rallies, prayer vigils and other gatherings around the state in support of the schools.

Lawyers for Kamehameha Schools then asked that all members of the appellate court review the matter and the full court reversed the three-judge panel's decision by an 8-7 vote in December 2006.

Grant then petitioned the U.S. Supreme Court to hear the case, and last May, on the eve of the high court announcement on whether it would take the case, the matter was settled out of court.

"We didn't think that there was a strong possibility (of losing) but that risk is always out there," J. Douglas Ing, chairman of the Kamehameha board of trustees, said in announcing the settlement in 2007. "There are no guarantees and there certainly were no guarantees from our lawyers that we would win the case."

Grant, the attorney for John Doe, said after the case was settled, "Obviously, a settlement is not exactly what either side wanted. But it is something both sides eventually came to terms on."

SPATS OVER FEES

Goemans is involved in a continuing dispute with John Doe, whose identity has never been revealed, and with Grant over how much money Goemans should receive for his part in the case.

Grant received 40 percent of the overall settlement — $2.8 million — although he had to sue the plaintiff and the plaintiff's mother in federal court in Sacramento last year to collect the money, according to Goemans and federal court records.

That collection lawsuit was filed in June after Kamehameha had paid the $7 million settlement. The dispute over the payment of Grant's fee was settled and dismissed in September.

Goemans said he asked John Doe and Jane Doe for 25 percent of the total settlement — $1.75 million — but has not yet received a response.

Grant filed a separate lawsuit against Goemans in California state court last year regarding how much compensation Goemans is owed for his part in the case.

That suit is still pending, although Goemans said he believes it is groundless and will be dismissed.

Grant yesterday declined comment on the collection lawsuit he filed in Sacramento against his own clients or the related action he filed against Goemans.

Goemans said he has received $20,000 in compensation to date from John Doe and his mother and is contemplating filing a new legal action of his own against them.

Honolulu Advertiser

~ ~ ~

February 9, 2008

School's $7M deal raises ire, eyebrows

By Jim Dooley, Advertiser Staff Writer

Yesterday's disclosure of the $7 million payment made by Kamehameha Schools to settle a civil rights lawsuit prompted questions and anger from individuals on both sides of the schools' controversial admissions policy that gives preference to students of Native Hawaiian ancestry.

"It does seem like a lot of money. It sure would be if it was in my pocket," said University of Hawai'i law school professor Jon Van Dyke, who served as a legal consultant to Kamehameha in the lawsuit.

Van Dyke said yesterday he wasn't part of the settlement discussions and still believes the payment led to the right outcome for the school.

The settlement was signed in May just before the U.S. Supreme Court was scheduled to announce whether it would hear an appeal of the case. Terms of the settlement had been kept confidential until this week. John Goemans, an attorney for the plaintiff in the case, revealed the $7 million figure to The Advertiser.

The settlement meant that an earlier 8-7 vote by the 9th U.S. Circuit Court of Appeals in favor of Kamehameha's admissions policy is still the prevailing law.

H. William Burgess, a local attorney who filed legal papers with the U.S. Supreme Court supporting the plaintiff in the case, said yesterday, "Wow. The settlement was much larger than I thought."

Burgess said he still believes the case should have been heard by the Supreme Court so that legal questions surrounding the school's Hawaiians-first admissions policy were settled.

"I actually think the trustees of the Kamehameha Schools have a legal duty, when there's a legitimate legal question about what they're doing, to seek a resolution of the issue," Burgess said.

News of the $7 million payment provoked more than 500 online postings to The Advertiser that variously criticized school officials who approved the payment and the lawyers and the client who received the money.

Beatrice "Beadie" Dawson, a native Hawaiian attorney who is active in Kamehameha Schools affairs, said yesterday the settlement itself and now news of the $7 million amount "are like an open invitation for more lawsuits."

"I was very dismayed by news of the settlement last year and I was very surprised by the size of it today," Dawson said.

Hawai'i attorney David Rosen, who last year announced plans to file another legal challenge to the school's admission policy, confirmed this week that the lawsuit is taking shape but has not been filed.

He issued a news release yesterday reacting to the settlement amount that said, "The people of Hawai'i should be outraged that the trustees of Kamehameha Schools place a higher value on discriminating rather than educating."

Goemans, the lawyer who publicly revealed the $7 million figure, said he believes the settlement should be a matter of public record given Kamehameha Schools' status as a tax-exempt charitable institution.

Goemans helped bring the civil rights lawsuit against Kamehameha in 2003 on behalf of a non-Hawaiian student denied admission to the high school. The student and the student's mother, who live on the Big Island, have never been identified except as John Doe and Jane Doe.

Goemans also said the settlement is subject to review by the Internal Revenue Service and by the state attorney general's office, which oversees Kamehameha Schools' annual financial accountings filed with state Probate Court.

Attorney General Mark Bennett could not be reached for comment yesterday.

David Fairbanks, a Honolulu lawyer serving as the appointed "master" who must review Kamehameha's financial fillings for the Probate Court, did not respond to a telephone message for comment yesterday.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.

Honolulu Advertiser

~ ~ ~

February 9, 2008

$7M

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

By Ken Kobayashi, Honolulu Star-Bulletin

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.

Grant said yesterday he had no comment.

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.

Later, a larger appeals court panel voted 8-7 to uphold the policy.

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.

http://starbulletin.com/2008/02/09/news/story02.html

~ ~ ~

February 9, 2008

Amount of settlement raises critical concern

By Robert Shikina, rshikina@starbulletin.com

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)."

Kamehameha Schools declined comment.

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."

http://starbulletin.com/2008/02/09/news/story03.html

* * *

From The Catbird Seat website:

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?

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

~ ~ ~

NEW DISCOVERY (03/12/08): Undisclosed conflicts of interests between Judge Robert Faris, David Farmer (Attorney for Aloha Airlines), Judge Michael Seabright, David Banmiller, and others, relating to the Hawaiian Airlines and Aloha Airlines bankruptcies:

October 31, 2007

Hawaii air fares may rise after $80M ruling

By Rick Daysog. Advertiser Staff Writer

Interisland airline go!, whose low prices started a fare war, has lost a court ruling that might prompt it to leave Hawai'i, industry analysts said.

If go! leaves, interisland airfares will likely rise, the analysts predicted.

A judge yesterday ruled that go!'s parent, Mesa Air Group, must pay $80 million to Hawaiian Airlines for misusing confidential business information.

But U.S. Bankruptcy Judge Robert Faris rejected Hawaiian's request to bar go! from selling interisland tickets for one year.

Mesa said it will likely appeal the decision and said it remained committed to the Hawai'i market. But analysts said that if the ruling stands, it will likely affect whether go! continues to offer $19, $29 and $39 one-way fares, or operate at all in Hawai'i.

"This definitely hurts Mesa," said Nick Capuano, managing director and head of equity research at Los Angeles-based Imperial Capital LLC, whose firm follows Hawaiian.

"It's now less likely that they will slug it out in a money-losing market."

The $80 million judgment is more than double the $34 million that Mesa earned for all of 2006 and is equivalent to about $2.78 for each outstanding share of Mesa's stock.

Since the June 2006 launch of go!, Mesa's cash holdings have fallen from about $345 million to about $198 million, according to a recent filing with the Securities and Exchange Commission.

Local airline industry historian Peter Forman said he believes the ruling will likely hasten Mesa's exodus from Hawai'i.

"I would think that this puts more pressure on Mesa to look at finding a settlement with Hawaiian for an exit strategy," Forman said.

The judge said Mesa used proprietary information it obtained from Hawaiian Airlines to "gain a competitive advantage ... to enter the market for Hawai'i interisland air transportation services."

"In this case, the award of money damages adequately redresses the harm suffered by (Hawaiian Airlines) as a result of Mesa's breach of the confidentiality agreement," Faris wrote in a 14-page finding accompanying his ruling.

REACTIONS TO RULING

Mark Dunkerley, Hawaiian's president and CEO, welcomed the judge's decision.

"Today's ruling is a triumph for fair competition and ethics over dishonesty and illegal behavior," he said.

"Nobody benefits when a company like Mesa misuses confidential information to gain an unfair competitive advantage, then lies about it and destroys evidence."

Jonathan Ornstein, Mesa's chief executive officer, said the likelihood of an appeal "is very high."

Ornstein said his company remains "more committed" to the interisland market in light of yesterday's ruling.

But should Mesa decide to leave Hawai'i in the future, Faris' ruling could cost consumers "hundreds of millions of dollars," Ornstein said.

He said Faris "basically ruled that the actions of one person were enough to punish" Mesa, its 5,000 employees and Hawai'i's residents and visitors.

He was referring to Mesa Chief Financial Officer Peter Murnane, who downloaded thousands of pages of proprietary information about Hawaiian's business, then destroyed the records, saying he thought he was deleting pornography from his work computers.

Murnane has since been placed on a 90-day leave of absence by Mesa's board.

"We are extremely disappointed, and that judge has put the interest of Hawaiian above the interests of the people of Hawai'i," Ornstein said.

Hawaiian sued Phoenix-based Mesa last year for $173 million in damages, alleging that Mesa used confidential financial data from Hawaiian to set up go! airline.

POSSIBILITY OF APPEAL

The ruling came after yesterday's close of the stock market. Mesa's stock closed at $5.10 on the Nasdaq market yesterday, up 16 cents. Shares of Hawaiian rose 61 cents to $5 per share on the American Stock Exchange in after-hours trading yesterday.

Mesa has up to 10 days to appeal Faris' decision with the U.S. District Court or with the bankruptcy appellate panel of the 9th U.S. Circuit Court of Appeals in California.

Such an appeal would require Mesa to post a bond for the full $80 million, unless Faris were to grant Mesa a stay pending the outcome of such an appeal.

Besides Hawaiian's lawsuit, Aloha Airlines has filed an antitrust lawsuit in U.S District Court against Mesa, alleging that Mesa used confidential information to drive it out of business.

"Aloha believes it is important for all companies serving the people of Hawai'i to conduct their business affairs with the highest ethical and legal standards, and the court today found that Mesa did not meet that standard of conduct," said David Banmiller, Aloha's president and chief executive officer.

"Contrary to what Mesa has been saying, today the court confirmed what we have been saying all along, that Mesa's actions as a new entrant have been inconsistent with fair play."

In its February 2006 lawsuit, Hawaiian alleged that Mesa received more than 2,000 pages of confidential financial information when Mesa expressed an interest in acquiring Hawaiian in 2004 while Hawaiian was in bankruptcy.

Mesa, whose bid was rejected, was supposed to return the documents or destroy them but didn't, Hawaiian alleged. Hawaiian emerged from bankruptcy protection in June 2005 under the ownership of California-based Ranch Capital LLC.

Mesa previously has argued that losses suffered by Hawaiian after go!'s entry were largely self-inflicted because the local airline increased capacity in response to go!'s entry.

Mesa also has said that Hawaiian wants go! out of the market so it can increase fares.

Yesterday's ruling comes after two weeks of court hearings from Sept. 25 to Oct. 4.

A 'MISADVENTURE'

During a pretrial hearing, Faris found that Mesa kept confidential information it was supposed to return or destroy; Mesa misused information it kept, and that was a substantial factor in Mesa's decision to enter the Hawai'i market.

In his findings of facts and conclusion of law, Faris cited about a half dozen confidential documents that Mesa misappropriated to start go! They include:

> Internal projections on Hawaiian Airlines' future operations and financial performance;

> Lists of contracts with the local airline's third-party vendors;

> Details of Hawaiian's expansion plans;

> The company's strategy for marketing to wholesale tour operators;

> Documents spelling out Hawaiian's contracts with its codeshare partners like American Airlines, Continental Airlines, Northwest Airlines and US Airways;

> Pricing policies, frequent flier programs and credit card alliances.

"A skilled and experienced expert in the airline business might have been able to make an 'educated guess' about some of these topics by drawing inferences from publicly available information," Faris wrote.

"These inferences would not have been as accurate and reliable as the information, which Mesa obtained directly from HA."

Scott Hamilton, a Washington state-based aviation industry consultant, called go! a "misadventure from the beginning."

RISING FARES PREDICTED

Hamilton said the interisland market could not sustain more than two major players, especially when fares are as low as $29 or $19.

He predicted that fares will return to where they were in 2005 when the local carriers were charging more than $79 each way if go! leaves the market.

"If indeed Mesa does decide to withdraw and shuts down go!, fares will go up the day go! shuts down, if not before," Hamilton said.

"There is no incentive to keep fares at present levels without go! in the market," he said.

Faris alluded to that prospect when he wrote:

"This situation cannot continue indefinitely; eventually fares must increase to a level that eliminates the market-wide losses. (It is highly unlikely that any of the three carriers could reduce its costs enough to eliminate its losses.)

"It is impossible to say with any decree of certainty, however, when this will occur or what the new fare level will be. It is also possible that another carrier could enter the market, holding fares down."

HOW EVENTS UNFOLDED

March 2003: Hawaiian Airlines files for bankruptcy protection.

April 2004: The federal bankruptcy court allows potential investors to study Hawaiian's books under a confidentiality agreement.

April to May 2004: Mesa downloads more than 60 documents, including more than 2,000 pages of proprietary information about Hawaiian's financial performance, projections and business strategy.

May 2004: Mesa is eliminated as a bidder for Hawaiian.

December 2004:
Aloha Airlines files for bankruptcy protection.

April 2005: Mesa starts looking into acquiring or forming a business alliance with Aloha. Mesa retains GCW Consulting, an Arlington, Va.-based aviation consulting firm, to "look at a possible acquisition or some other structure for entry into the Hawai'i market."

June 2005: Hawaiian Airlines exits bankruptcy protection under the ownership of California-based Ranch Capital LLC.

January 2006: Mesa's Chief Executive Officer Jonathan Ornstein tells investors that Mesa's decision to enter the interisland market was based on its review of Hawaiian and Aloha Airlines during their bankruptcy cases.

February 2006: Hawaiian sues Mesa to bar the company from operating in the interisland market for two years. Hawaiian alleges Mesa improperly used confidential data it received when Hawaiian was in bankruptcy. Hawaiian later reduces the length of the ban it seeks to one year.

March 2006: Mesa begins selling tickets for its June 9 launch of interisland carrier go!

March 2006: Mesa files countersuit, accusing Hawaiian of trying to illegally block competition.

June 2006: Mesa launches go!

September 2006: Hawaiian alleges Mesa tried to drive Aloha out of business and cites e-mails by Mesa Chief Financial Officer Peter Murnane. One e-mail says: "If we assume Aloha stays in market and in business forever, this project makes no sense. We definitely don't want to wait for them to die, rather we should be the ones who give them the last push."

October 2006: U.S. Bankruptcy
Judge Robert Faris rejects Hawaiian's request for a ban but says Mesa "probably breached the confidentiality agreement" by failing to return or destroy material it received. Faris also concludes that "at one time, Mesa hoped to drive Aloha out of business."

October 2006: Aloha sues Mesa, alleging that it misused confidential information in an attempt to drive Aloha out of business.

December 2006: Faris throws out Mesa's countersuit against Hawaiian.

August 2007: Hawaiian accuses Mesa CFO Murnane of destroying several computer files that included confidential Hawaiian material.

Yesterday: Faris orders Mesa to pay Hawaiian $80 million in damages for misusing confidential business information.

• • •

Postings at www.honoluluadvertiser.com

This is a representative sampling of comments posted at honoluluadvertiser.com after the go! airline ruling was announced:

go! just wanted to drive out Aloha or Hawaiian, then it would have raised prices for sure.

Dan, Honolulu

Please don't go, go! We need the "reasonable" fares to stay. Hawaiian and Aloha were gouging us for too long!

RCM, Honolulu

I think it is fair considering Mesa came in to put either Hawaiian or Aloha out of business using confidential information.

Nate

Mesa will go buh-bye,
Hawaii Superferry will go buh-bye,
Hawai'i consumers will suffer once again,
And the "ol' boy network" will live happily ever after.

Largo, Honolulu

http://the.honoluluadvertiser.com/article/2007/Oct/31/

~ ~ ~

NEW DISCOVERY (10/29/07): Judge Robert Faris has conflicting financial and professional relationships with Marsh & McLennan’s Mercer Consulting Services, Colbert Matsumoto, David Farmer, and others, in connection with the Aloha Airlines and Hawaiian Airlines bankruptcy cases:

December 14, 2005

Ruling on pension critical for Aloha

By Dan Nakaso, Honolulu Advertiser

The future of Aloha Airlines will come down to an appeal that will be decided tomorrow in U.S. District Court over whether Hawai'i's second-largest airline can turn its pension responsibilities over to the federal Pension Benefit Guaranty Corp.

U.S. Judge Michael Seabright late yesterday agreed to rule on PBGC's appeal tomorrow afternoon, the same day that Aloha attorneys say the airline's current funding expires.

Aloha officials also hope that a ruling in their favor will clear the way for Aloha to exit bankruptcy under new owners, who will inject up to $100 million in new capital.

Attorneys for Aloha Airlines and Aloha Airgroup, Inc. have said that terminating the employee-defined benefit plans is a condition of Aloha's prospective new owners, California billionaire Ron Burkle's Yucaipa Companies and former NFL football star Willie Gault's Aloha Aviation Investment Group.

"Without a replacement loan, this company is dead," Aloha attorney David C. Farmer told Seabright. "It will shut down. These two events are on a collision. ... It's a matter of life or death to the company."

Seabright's decision to hear the PBGC's appeal capped a flurry of legal activity that began yesterday morning in U.S. Bankruptcy Court, where Judge Robert Faris told Aloha's attorneys there was "no way" they would be able to proceed with their plans to exit bankruptcy by tomorrow.

"I hope you have a Plan B," Faris said.

But Seabright agreed to speed up PBGC's appeal to meet Aloha's deadline tomorrow.

"It puts a lot of pressure on me," Seabright said. But he cited "the irreparable harm" to Aloha and its nearly 3,600 employees if he did not hear the appeal.

"Now that all of the facts have been established, new contracts have been ratified by all Aloha employee bargaining groups and creditor issues have been resolved," Aloha said in a statement yesterday, "it is unfortunate that the PBGC is challenging the court's order confirming Aloha's plan of reorganization. ... We believe that it is in everyone's best interest for the PBGC to revisit its appeal, respect the court's order confirming Aloha's plan to exit bankruptcy and work with Aloha to complete this transaction."

Attorneys for the PBGC did not return telephone calls seeking comment.

~ ~ ~

March 17, 2002

Dead air deal rankles Aloha

By Susan Hooper, Honolulu Advertiser

The proposed merger between the state's two local airlines foundered because Hawaiian Airlines wanted to change the terms of the agreement, including eliminating the Houston consulting firm coordinating the deal, the chief executive of Aloha Airlines said in a statement today.

Hawaiian's proposal also would have given Hawaiian chairman John Adams the top spots in the merged airline, eliminating Greg Brenneman, the TurnWorks executive who had been orchestrating the merger, according to Glenn Zander, Aloha's president and chief executive officer.

"Aloha could not accept Hawaiian's new proposal because in our judgment, it was not in the best interest of the state, the traveling public or Aloha's shareholders and employees," Zander said.

The details emerged a day after Hawaiian said it was pulling out of the deal because it did not wish to extend what it called an April 18 "outside date for completing the merger." It said increasing costs and risks of the deal were factors.

The announcement surprised many in the state, including employees of both airlines and state legislators who as late as last Tuesday had held a hearing on the merger.

Today, Zander said Hawaiian's action was "regrettable" and said members of Aloha's board of directors voted unanimously to reject Hawaiian's proposal. He also praised Brenneman and TurnWorks for their work on the merger.

Hawaiian spokesman Keoni Wagner said tonight, "We don't necessarily agree with Aloha's characterization of the negotiations, but we also choose not to discuss publicly what would otherwise be private conversations."

The apparent power grab by Adams came even though he and his affiliated companies would have been the financial winners if the merger had gone through. Adams stood to receive assets valued at about $109 million. Adams, his companies and other Hawaiian shareholders also would have held a 52 percent stake in the new airline.

Under terms of the original merger, the shareholders of privately owned Aloha Airlines — many of them relatives of the company founders — would have gotten 28 percent of the merged airline, worth an estimated $56 million.

TurnWorks would have received a 20 percent stake in the company.

For more than a year, Aloha and its consultant have viewed TurnWorks and Brenneman as essential to the success of the merger, according to documents filed with the Securities and Exchange Commission last month that outlined how the merger came about.

Aloha's consultant, Mercer Management, initially approached Brenneman in February 2001 asking whether he wanted to invest in the airline. In July, Brenneman, a former top executive with Continental Airlines, met further with Mercer to discuss a possible investment and subsequent merger with Hawaiian.

Hawaiian officials, contacted in August, initially appeared cool to the idea but after the Sept. 11 terrorist attacks, and subsequent downturn in travel, they agreed to "discuss a possible merger involving the two airlines and TurnWorks," according to the documents.

On Sept. 22, according to the documents, Mercer and senior management officials of Aloha and Hawaiian met and Mercer proposed that both airlines should continue to include Brenneman and TurnWorks in the merger discussions as Brenneman "was likely to be an important factor in creating an agreement between the two airlines, leading the integration efforts, and running the combined carrier and in generating maximum value for shareholders of both companies."

On Sept. 25, the documents say, all parties agreed to proceed with merger talks. They also agreed "that the involvement of TurnWorks and Brenneman would be an important factor in consummating a deal, as past efforts to combine the two airlines were not successful."

TurnWorks officials said in a statement today, "We were surprised and disappointed (by Hawaiian's decision) ... The failure to extend the timetable essentially precludes completing this complex transaction....

The abrupt end to the merger, which was announced Dec. 19, leaves the future of the two airlines and of Hawai'i's interisland airline market uncertain. In announcing the deal three months ago, executives with both airlines said they needed to merge because conditions in the airline industry — and in the interisland market in particular — had made it impossible for them to survive separately.

After the Sept. 11 attacks, both airlines lost tens of thousands of dollars a day and furloughed hundreds of workers. In recent weeks, as the Mainland economy has recovered, there have been signs of improvement in the local airline market.

Still, documents filed with the Securities and Exchange Commission show that Aloha is financially more vulnerable than Hawaiian. The privately held airline has more debt on its books and reported a $1.25 million loss at the end of the third quarter Sept. 30. The airline also has smaller and older aircraft and fewer flights to the Mainland.

Today Zander said Aloha has its own business plan to move ahead "on a stand-alone basis." Aloha spokesman Stu Glauberman said Zander will be meeting with Aloha's employees' union executives tomorrow.

Before the announcements over the weekend, the two airlines had been working on a joint application to take advantage of a special antitrust exemption granted by Congress last November to cooperate on some operations, such as routes, scheduling and pricing....

Gov. Ben Cayetano had been a supporter of the merger and said today, "The failure of the merger had nothing to do with the U.S. Department of Justice, the state Legislature or public opposition. This was a business decision that we will have to accept. The state administration will do its best to try to assure that Hawai'i will continue to have two viable interisland carriers."

State Sen. Ron Menor, D-18th (Mililani, Waipahu, Crestview), chairman of the Senate Commerce, Consumer Protection and Housing Committee, had opposed the merger and his committee took part in statewide hearings....

The mood among workers at Honolulu's interisland terminal was split between the two airlines today, with Aloha employees grim-faced and in no mood to talk about the failed merger, and Hawaiian employees buoyant.

~ ~ ~

April 22, 2005

Law firm quits from Aloha Air bankruptcy

The Gelber firm was at the center of a dispute
between the carrier and its lenders

By Dave Segal, Starbulletin

Aloha Airlines' lead legal firm, which has represented the carrier during its four-month bankruptcy, is withdrawing from the case.

The Honolulu firm Gelber, Gelber, Ingersoll & Klevansky didn't offer any specific reasons for its decision. However, earlier this month, Aloha went to court after having a dispute with the company's new lenders over whether the Gelber firm's Aloha Airlines trust account was vulnerable if the lenders were to collect on a lien.

The Gelber firm's Aloha trust account contains the firm's pre-bankruptcy retainer, which has a balance of $250,000, plus additional money for legal services that were deposited in keeping with court procedures.

Don Gelber, partner in the Gelber law firm, declined to comment on reasons for withdrawing as counsel. However, the firm said in its motion that it was an opportune time because the withdrawal would eliminate any question concerning a conflict of interest between the firm and the airline, many of the company's legal problems have already been addressed and the firm's withdrawal probably would reduce Aloha's legal expenses.

People familiar with the case said fee issues and a difference of opinion over the bankruptcy process prompted the Gelber firm's decision to want out.

The move to pull out comes as Aloha is entering a new chapter in its bankruptcy.

Earlier this week, the company's mechanics and inspectors union became the last of the airline's five unions to ratify a labor contract that has concessions. The new pact will allow the outsourcing of heavy-machinery work, which will result in 79 positions being lost.

In addition, Aloha sent letters to its flight attendants last week requesting volunteers to take three-month unpaid vacations.

Al Pattison, the company's senior vice president of human resources, said about 40 jobs will be affected and that the airline will be forced to lay off flight attendants if it doesn't get enough volunteers. The airline won't need as many flight attendants because a new contract provision reduces the number of attendants on trans-Pacific flights from four to three.

Aloha already has laid off 24 pilots since the start of the year.

David Banmiller, president and chief executive of Aloha, said the company has made "monumental progress" during its reorganization. He cited new aircraft leases, paying off more than $20 million in federally guaranteed loans, paying off another $20 million in commercial loans, obtaining a new $65 million loan and securing the new labor contracts.

"We are now at a new juncture that places great emphasis on the capitalization of the company and its emergence from bankruptcy," Banmiller said.

Berger Singerman, a Miami-based law firm that has been acting as the airline's special transaction counsel, will replace the Gelber firm as the lead attorneys. Hawaii lawyer David Farmer, a former president of the bankruptcy law section of the Hawaii State Bar Association, will join Berger Singerman's legal team as the local co-counsel.

Paul Singerman said the Gelber firm has done "a great job" but declined to comment on why the firm decided to pull out.

"A development of this kind is not a particularly common occurrence in a Chapter 11 case," Singerman said.

http://starbulletin.com/2005/04/22/business/story1.html

~ ~ ~

January 14, 2005

Isle bankruptcy lawyers enjoy boom in business

Local representation for
Aloha Airlines improves efficiency

By Dave Segal, Star-Bulletin

Is there an available Chapter 11 attorney in the courtroom?

The side-by-side reorganizations of Hawaiian and Aloha airlines might not be good for their employees and creditors, but the cases are providing a steady flow of income to the firms of the approximately 50 attorneys in town who specialize in business bankruptcies.

"Airline bankruptcy is a growth area. It's certainly not a bad time to be a bankruptcy lawyer," said Rich Turbin, the newly elected president of the Hawaii State Bar Association.

Gelber, Gelber, Ingersoll & Klevansky, one of the few firms in Hawaii with the resources to serve as the lead counsel in a commercial bankruptcy, was chosen to represent Aloha yesterday in a ruling that will make the bankruptcy less expensive and more efficient for the airline than if it had been forced to look for representation on the mainland.

But the selection of the Gelber firm did not come without a fight. The Office of the U.S. Trustee objected to the firm's hiring in federal Bankruptcy Court because the firm also represents the majority shareholders of Hawaiian Airlines' parent company and an investor group that is part of the leading reorganization plan for Hawaiian.

U.S. Trustee attorney Curtis Ching said the Gelber firm should remove itself from the Hawaiian Airlines case if it wants to represent Aloha, because not doing so would create conflicts since the two airlines are competitors in the interisland flight market. Ching said the Gelber firm would have access to confidential information of Aloha and that Hawaiian and Aloha have competing interests.

But Bankruptcy Judge Robert Faris sided with the Gelber firm while noting that the Hawaiian Airlines case appears to be coming to an end. Faris indicated it could be difficult for parent company Hawaiian Holdings Inc. and investor group RC Aviation LLC to find new local representation this late in the bankruptcy.

"About a week ago, one party (involved with Hawaiian Airlines) said he was finding it impossible to find local counsel who wasn't already involved in the (Hawaiian) case," Faris said.

Hawaiian Airlines attorneys typically charge about half of what is demanded by their mainland counterparts. For example, Los Angeles attorney Bruce Bennett, who represents Hawaiian Airlines trustee Joshua Gotbaum, bills at $645 an hour, while the trustee's local attorney, Tom Roesser, bills at $285 an hour. Brett Miller, the New York-based attorney who heads the Hawaiian Airlines unsecured creditors' committee, bills at $575 an hour, while Jim Wagner, the unsecured creditors group's top-charging local attorney, bills at $350 an hour.

Even when mainland counsel is necessary or desired, Hawaii attorneys still get their share of the money. Hawaii state bar rules of the U.S. District Court require that attorneys who are not members of the Hawaii state bar must have local counsel sponsor them. Therefore, if a Hawaii company needs representation locally and from the mainland, bankruptcy expenses will quickly escalate. Although the state has about 130 members in the bankruptcy law section of the Hawaii State Bar Association, most of them handle consumer debtors in chapters 7 and 13 cases.

Still, attorney Don Gelber does not think the two simultaneous local airline bankruptcy cases are straining the availability of Hawaii attorneys, despite how it might appear on the surface.

"I don't think it has a significant difference," he said. "Each case alone requires so many professionals that those roles will be filled by both mainland and local counsel, consultants and other experts. I think the fact that both carriers are in Chapter 11 proceedings may have some effect on the ability of counsel to serve in each case, but it all depends on the facts and circumstances."

As it stands, most of the local attorneys who have Chapter 11 experience will end up representing both airlines. Unless an attorney is representing a bankrupt company, its creditors' committee or a trustee, the attorney is considered to be free of conflict and can get permission from other clients to participate in both cases.

Jerrold Guben, a bankruptcy attorney with Honolulu-based Reinwald O'Connor & Playdon, said mainland counsel who need a local sponsor do not have to rely on those who specialize in Chapter 11 cases.

"I'm sure all the Chapter 11 specialists have been spoken for in the Hawaiian case," Guben said. "But you could always use somebody else who's just a member of the bar."

http://starbulletin.com/2005/01/14/news/story6.html

~ ~ ~

January 4, 2005

Aloha Airlines in first bankruptcy hearing

Pacific Business News

Federal bankruptcy judge Robert Faris, now handling the bankruptcies of both Hawaiian Airlines and Aloha Airlines, said at Aloha's hearing Monday that he will take care to see that neither airline is put at a disadvantage by his rulings concerning the other.

That promise by Faris will reassure Aloha CEO David Banmiller, who has said he filed for Chapter 11 bankruptcy last Thursday in part because receivership had allowed Hawaiian to obtain a cost edge by renegotiating leases and other contracts.

Companies in Chapter 11 have the power to back out of contracts. The implicit threat of this allows them to renegotiate agreements with lenders and vendors, obtaining better terms. Outside of bankruptcy, a contract is a contract. Hawaiian has won new terms for jet leases, while Aloha has been locked into much higher rates.

Aloha is privately held by two local families, descendants of Hung Wo Ching and Sheridan Ing, and the airline revealed Monday that the families had offered to lend the airline $3 million in operating cash.

The parallel bankruptcies put Faris in the position of having unique access to operating information about the rival airlines. Ordinarily the airlines would not share such information with other. Both airlines operate a combination of interisland short-haul and trans-Pacific long-haul flights, though Aloha has more of the former and Hawaiian has more of the latter.

www.bizjournals.com/pacific/stories/2005/01/03/daily22.html

~ ~ ~

Judge Robert Faris is expected to testify as to the reasons why he failed to disclose his former professional relationships to other parties in interest in this case, in particular Sheridan Ing, Louise Ing, Paul Alston, Colbert Matsumoto, Kamehameha Investment Corp, Guido Giacometti, Steven Guttman, Greg Dunn, Bradley Tamm and Robert Kessner, and why he did not recuse himself from this case because of these conflicts of interests.

Judge Robert Farris is also expected to testify regarding his conflicting relationships due to the fact that Creditors in the Hawaiian Airlines Chapter 11 bankruptcy case included Kamehameha Investment Corp. (his former client), Kamehameha Schools, Kamehameha Swim Club, Kamehameha Swim Team, Kessner Duca Umebayashi Bain & Matsunaga, James Duca, Steven Guttman, and other parties in interest in the instant case.

Judge Robert Farris is also expected to testify regarding his business, professional and personal relationships with Judge William S. Richardson; Sandwich Isles Communications; Robert Kihune; Gil Tam; Harry Johnston; Grant Johnston; Francis Keala; Ronald Libkuman; Robert Kessner; James Duca; Herbert Horita, Halekua Development Corp; John Garibaldi; Aloha Airlines; Goldman Sachs; Aloha Tower Associates; Apollo Advisors; Sanford Murata; Jon Miho; Peter Savio; Kamehameha Schools; Kamehameha Investment Corporation; Kamehameha Activities Association; Yukio Takemoto; Bob Ramsey; Thomas Hayes, PGMA, Hawaii Dental Services, Faye Kurren, Earl Anzai; Lyn Flannigan Anzai; Hawaiian Airlines; Joshua Gotbaum; Mary Lou Woo; Larry Mehau, Hawaii Protective Association; Harry & Jeanette Weinberg Foundation; Dr. Michael Chun; Larry Matsuo; Park Engineering; James Duffy, Fujiyama, Duffy & Fujiyama; Roy Catalani, Chair of Hawaii Land Use Commission, and attorney with Rush Moore Craven Sutton Morry & Beh; Susan Tius, Guido Giacometti; Sukamto Sia; Jerrold Guben; Curtis Ching; James B. Nicholson; Judge Lloyd King; TerranceTom; Stanley L. Ching; Guy Lam; Keahou-Kona Construction Corp.; Parker Ranch; Glen Yasui; A&B Properties; John Waihee; RightStar Cemeteries (Valley of the Temples Memorial Park; Maui Memorial Park; Homelani and Kona Memorial Parks), Sterling & Miller; Michelle Tucker, Sterling & Tucker; Sanford Murata; JoAnn Mucha; Century 21; Glenn Taguchi; Chris Yuen; Hawaii County Planning Dept.; Norman Hayashi; Bob Herkes; Francis Oda, Group 70 International; Rockne Freitas, Chancellor, Hawaii Community College; Colbert Matsumoto; Aloha Airlines; Hiram Fong, Jr; Hawaii Department of Land and Natural Resources; Hawaii Land Use Commission; George Ariyoshi; Sim Wenner; Martin Anderson; Richard M. Kennedy; Dr. William Bergin; Bobby Cooper, W.H. Shipman Ltd.; Honolulu Memorial Park; Sheridan Ing, David Farmer, Rocco Sansone, Marsh & McLennan, Mercer Consulting Services; Charles Sweeney; George Ruff, Trinity Investment LLC; VMS Realty; Seibu Hawaii; Azabu Building, Integrated Resources, and others to be determined upon discovery.

Internet References:

Bias Complaints / Motion to Recuse/Judicial Independence

www.kycbs.net/BK-Motion-Recuse-Faris.htm

www.kycbs.net/CV05-00030-Complaint-Chang-5-16-5.htm

www.kycbs.net/CV05-00030-Complaint-Ezra-6-6-5.htm

www.kycbs.net/CV05-00030-Motion-Recuse-Ezra.htm

www.kycbs.net/CV05-00030-Motion-Recuse-Chang.htm

http://www.lwv-hawaii.com/judicial.htm

Chronologies

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

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

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

Pension and Bankruptcy Fraud-Related Links

www.kycbs.net/KSBE-Pension.htm

www.kycbs.net/Bankruptcy-Buzzards.htm

www.kycbs.net/NestEggs.htm

www.campaignwatch.org/details.htm

Letters, Documents, News Articles and Related Links

http://starbulletin.com/2006/03/01/editorial/special2.html

http://starbulletin.com/2006/03/12/editorial/special.html

http://starbulletin.com/2006/03/12/editorial/special2.html

http://starbulletin.com/2005/12/23/news/story05.html

www.kycbs.net/Doc-Guttman-To-AAA-6-19-4.pdf

www.kycbs.net/Bishop5.htm

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

www.kycbs.net/MM-Mercer.htm

http://starbulletin.com/2005/01/14/news/story6.html *

http://starbulletin.com/2005/03/25/business/story1.html

http://starbulletin.com/2005/04/08/business/story1.html

http://starbulletin.com/2005/11/16/business/story01.html

http://starbulletin.com/2003/02/19/news/index4.html

www.kycbs.net/Guido-Sterling-Tucker.htm

www.kycbs.net/Apollo.htm

www.kycbs.net/Summit-Communications.htm

www.kycbs.net/PunaConnection.htm

www.kycbs.net/Aloha-Air.htm

www.kycbs.net/Cemetery.htm

www.kycbs.net/Hawaiian-Air.htm

www.kycbs.net/Trinity.htm

www.kycbs.net/VMS-Realty.htm

www.kycbs.net/Zephyr.htm

www.alpa.org

www.halclaims.com

http://ecf.hib.uscourts.gov/cgi-bin/PublicOpinion.pl

www.hsba.org/hsba/Legal_Seminars/Bankruptcyregistration.pdf

www.bizjournals.com/pacific/stories/2001/11/12/story2.html

www.starbulletin.com/97/10/17/news/story2.html

http://www.environment-hawaii.org/302uh.htm

www.starbulletin.com/2003/01/25/business/story1.html

www.kycbs.net/Maui-Land-Pine.htm

www.kycbs.net/Paradise.htm

www.kycbs.net/SandwichIsles.htm

www.kycbs.net/Act221.htm

www.kycbs.net/IndonesianConnection.htm

www.kycbs.net/BrokenTrust.htm

www.kycbs.net/ChinaBerets.htm

www.kycbs.net/Developers.htm

www.kycbs.net/Ko-Olina.htm

www.kycbs.net/Alexander-Baldwin.htm

www.kycbs.net/Aloha-Air.htm

www.kycbs.net/Dirty-Millions.htm

www.kycbs.net/Integrated-Resources.htm

http://luc.state.hi.us/minutesofmtgs/2004/1210_%202004.pdf

http://luc.state.hi.us/minutesofmtgs/2004/1209_2004.pdf

www.state.hi.us/jud/26802dsm.htm

www.starbulletin.com/2003/02/06/news/story7.html

www.kycbs.net/Advertiser-RightStar-Waihee.pdf

www.kycbs.net/Bishop5.htm

www.kycbs.net/GoldmanSachs.htm

www.kycbs.net/CV05-00030-Answer.htm

www.kycbs.net/Claim-MarrHipp-7-13-2.htm

www.kycbs.net/Woo-1-31-3.htm

www.kycbs.net/AAA-9-19-3.htm

www.kycbs.net/AAA-10-02-3.htm

www.kycbs.net/Claim-Guttman-8-4-4.htm

www.kycbs.net/Claim-PC-8-6-4.htm

www.kycbs.net/Claim-MarrHipp-8-9-4.htm

www.kycbs.net/Claim-Guttman-8-10-4.htm

www.kycbs.net/Claim-Guttman-8-13-4.htm

www.kycbs.net/Claim-Guttman-8-21-4.htm

www.kycbs.net/Claim-PC-9-1-4.htm

www.kycbs.net/Claim-Hawaii-AG-12-27-4.htm

www.kycbs.net/BK-Response-1-19-5.htm

Equity 2048 -The Richards Report

http://www2.hawaii.edu/~rroth/Richards%20Master%20Report.doc

XL Reinsurance Policy No. XLRKS-01796

www.kycbs.net/Doc-EQ2048-XL-Policy-Dec.pdf

www.kycbs.net/Doc-EQ2048-XL-Policy.pdf

www.kycbs.net/Doc-EQ2048-XL-Policy-Append.pdf

Equity 2048 - Related Correspondence and Documents

http://www.brokentrustbook.com/sources.html#ag

http://www2.hawaii.edu/~rroth/Goodenow%20Report.pdf

http://www.brokentrustbook.com/legalissues.html

www.kycbs.net/EQ2048-Anzai-McCubbin-4-27-0.pdf

www.kycbs.net/EQ2048-AG-Trustees-4-27-0.pdf

www.kycbs.net/EQ2048-Miyagi-AG-4-27-0.pdf

www.kycbs.net/Doc-EQ2048-Seal-Docs-5-3-0.pdf

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

www.kycbs.net/Doc-EQ2048-AG-Witnesses-5-19-0.pdf

www.kycbs.net/EQ2048-XL-Miyagi-AG-5-26-0.pdf

www.kycbs.net/Doc-EQ2048-Form990-1998-pdf

www.kycbs.net/EQ2048-DiscoveryFees-5-30-0.pdf

www.kycbs.net/EQ2048-AG-Objection-6-23-0.pdf

www.kycbs.net/EQ2048-Federal-Response-6-23-0.pdf

IRS Closing Agreement for Kamehameha Schools

www.kycbs.net/KSBE-IRSagrmnt.pdf

www.kycbs.net/KSBE-IRSagrmnt2.pdf

The Na Kumu Book Advisory Group

www.kycbs.net/NaKumuBook-6-10-4.htm

www.kycbs.net/NaKumuBook-6-12-4.htm

www.kycbs.net/Doc-Guttman-To-AAA-6-19-4.pdf

www.kycbs.net/AAA-6-21-4.htm

Broken Trust: Greed, Mismanagement & Political Manipulation

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

www.brokentrustbook.com

www.actec.org/private/freeform/page.asp?PageID=614

http://www.brokentrustbook.com/sources.html#masters

Lost Generations: A Boy, A School, A Princess

www.kycbs.net/Lost-Generations.htm

KITV Special Report

www.thehawaiichannel.com/newsarchive/7510847/detail.html

First Amendment Rights/Obstruction of Justice

http://starbulletin.com/97/08/20/news/story1.html

http://starbulletin.com/97/08/26/news/story1.html

http://starbulletin.com/97/09/23/news/story2.html

http://starbulletin.com/97/10/03/news/story2.html

http://starbulletin.com/2006/03/15/editorial/letters.html

www.kycbs.net/KSBE-vs-BNH-Goemans-Free-Speech.pdf

www.kycbs.net/AAA-6-18-4.htm

www.kycbs.net/Doc-Guttman-To-AAA-6-19-4.pdf

www.kycbs.net/AAA-6-21-4.htm

www.kycbs.net/CV05-00030-Answer.htm

www.kycbs.net/CV05-00030-Hughes-Roy-8-4-5.htm

www.kycbs.net/CV05-00030-Guttman-8-6-5.htm

www.kycbs.net/CV05-00030-Appeal-Brief.htm

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

Hawaii Dept. of Labor - CV 98-2394-05 - Unemployment Insurance Appeal

www.kycbs.net/DOL-Koza-3-5-97.pdf

www.kycbs.net/DOL-Reply-Brief-11-6-98.htm

www.kycbs.net/DOL-Appeal-Append-A.pdf

RICO Lawsuit - 99-CV-00304-DAE-BMK

www.kycbs.net/RICO-BH.htm

www.kycbs.net/RICO-Parties.pdf

www.kycbs.net/RICO-Filers.pdf

www.kycbs.net/RICO-Attorneys.pdf

www.kycbs.net/RICO-Docket.pdf

www.kycbs.net/Settlement-Page1-Signatures.pdf

www.kycbs.net/Settlement-Exhibit5-Filed-3-24-0.pdf

IRS Closing Agreement for Kamehameha Schools

www.kycbs.net/KSBE-IRSagrmnt.pdf

www.kycbs.net/KSBE-IRSagrmnt2.pdf


TO GO TO THE WOO VS. HARMON WITNESS INDEX


www.kycbs.net/CV05-00030-Witness-Index.htm

 

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CHRONOLOGY

August 22, 2005: Originally posted on www.the-catbird-seat.net

March 13, 2007: Judge David Ezra signs Order to shut down website

September 4, 2009: Latest update on www.kycbs.net

~ ~ ~

THE CATBIRD SEAT ARCHIVES

The Catbird Seat Archives: 2000-2002

The Catbird Seat Archives: 2002-2007

 

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