Office of The United States Trustee vs. Harmon

(Formerly Woo vs. Harmon)

CV05-00030 DAE KSC

U.S. District Court For the District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

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DATE: July 24, 2006, 09:45 AM

JUDGE: Hon. David Ezra



Professor, William S. Richardson School of Law, University of Hawaii; named as an Expert Witness EQ2048; co-author (with Judge Samuel P. King) of the book Broken Trust: Greed, Mismanagement, and Political Manipulation at America’s Largest Charitable Trust.

Address to be determined.


Professor Randall Roth is expected to testify regarding his public statements in the “Broken Trust” Forum held on July 5, 2006, as reported in Small Business News, and excerpted as follows:

‘Broken Trust’ Forum Calls for
Release of Corruption Documents

By Malia Zimmerman

The full story of the corruption that permeated Hawaii’s $10 billion charitable trust, the Kamehameha Schools/Bishop Estate, to the highest levels of government in Hawaii, has never been told.

But the information that has become public is categorized by 60 Minutes as “The biggest story in Hawaii since Pearl Harbor;” by The New York Times as “A feudal empire so vast that it could never be assembled in the modern world;” and by Howard M. McCue III, the Chairman of the Charitable Planning Committee for the American College of Trust and Estate Counsel, as “The most significant legal dispute of our time … a tale of unbridled ambition, infectious greed, and high drama … .”

This saga, involving Bishop Estate trustees, state Supreme Court justices, a former governor and leaders in the Hawaii State Legislature, peaked in 1997.

However, nearly one decade later, critics say there has been no accountability for the many influential people who wrongfully took advantage of Princess Pauahi Bishop’s charitable trust – a trust she established in 1884 to fund the education of Hawaiian children, not to fatten the pockets of politicians and trustees.

University of Hawaii Law Professor Randall Roth and U.S. Federal Judge Samuel King, co-authors of a newly published book, Broken Trust: Greed, Mismanagement and Political Manipulation at America’s Largest Charitable Trust, documented the story of the trust from its inception 100 years ago through current times.

At a July 5 forum hosted by Small Business Hawaii, and moderated by Hawaii Reporter, Roth and King shared their thoughts on what led to the extensive problems at the Bishop Estate and what still needs to be done to ensure there is justice and accountability for past wrongdoings.

Joining them were four other prominent Hawaii citizens who played a major role in pushing for reforms including Hawaiian attorney Beadie Dawson, former Honolulu Star-Bulletin Managing Editor Dave Shapiro, former Campaign Spending Director Robert Watada and Congressman Ed Case….

Before the 90-minute panel wrapped up, the panelists shared some of the following insights from their experiences:

Congressman Case was a freshman state legislator in 1995 when he tried to make two major reforms related to the Bishop Estate – take the Supreme Court justices out of the trustee selection process and limit trustee compensation to what was “reasonable” – both of which made him forceful enemies within the legislative leadership, the court and the Bishop Estate.

“I got nailed pretty bad,” Case says of his first attempt in 1995.

The Hawaii Supreme Court justices admitted that they were split on whether they should be in the business of appointing trustees because of perception of cronyism and favoritism.

In 1997, Roth, King and three other well-respected Hawaiians signed their name to a compelling essay entitled “Broken Trust” that documented the power, influence and wrongdoing in the highest levels of the Bishop Estate and the Hawaii government.

Shapiro, then the managing editor of the Honolulu Star-Bulletin, published the oped, which rocked the very core of the Hawaiian, political and legal communities.

That was the final catalyst for all but one justice – Robert Klein (now an attorney/lobbyist for the Office of Hawaiian Affairs) – to voluntarily step aside from the duty.

Case’s bill to limit trustee compensation also passed, despite major obstacles. At the time, trustees were making more than $1 million a year.

The House, which had Bishop Estate-backed leadership, including House Speaker Joe Souki, and Reps. Terrance Tom and Calvin Say, agreed to a bill that would study the issue. But the Senate sides with Case in establishing compensation limits. In a highly unusual move, Case moved to suspend the rules and adopt the Senate version. Because of extensive pressure from the Hawaiian comunity, the media and the public, the House agreed to the bill by a vote of 50 to 1 with Rep. Say (who is presently the House Speaker) as the one dissenting vote.

Now, as a Congressman for the second district who is running for U.S. Senate against Sen. Daniel Akaka, Case has distinguished himself from his opponent on this issue. Akaka was sympathetic with the ousted trustees, while Case pushed for more accountability and less compensation. Today, Case says there are still “broken trusts” in Hawaii, which need to be addressed….

A great deal of the information Roth and co-author Judge King used to write the Broken Trust was given to them by Watada, the director at the time of the state Campaign Spending Commission.

But Roth says there are still between 1 million and 2 million more documents sealed by the courts that he wants to review and catalogue and believes should be made public.

He hopes trustees will some day be held accountable for their mismanagement. But that is unlikely: they did not pay legal fees for the most part, they took millions of dollars for themselves, they paid off political cronies with trust funds, and held what Roth calls a “world record for breaches of trust.”

Roth and King maintain the Broken Trust saga is not over, and neither are the problems for Kamehameha Schools if further safeguards and reforms are not implemented….


Professor Roth is also expected to testify regarding his legal views on whether Judge Kevin Chang should have sealed the records in EQ2048. These are some of the records that Defendant has asked to be subpoenaed in the instant case (See: Documents To Be Subpoenaed)

As a professor of law, Randy Roth is also expected to testify regarding the Defendant’s First Amendment Rights of Freedom of Speech and Freedom of Religion. In particular, this witness is expected to testify regarding Defendant’s First Amendment Rights with respect to his “letter-writing campaign” to the U.S. Attorney General’s office, the Hawaii Attorney General, the Hawaii Insurance Commissioner, the IRS, the FBI, and others – which often included copies of these letters being sent to Dr. Roth.

Dr. Randall Roth is also expected to testify regarding his personal and professional relationships with Defendant, Kamehameha Schools/Bishop Estate, Colbert Matsumoto, Walter Heen, Judge Samuel King, Ed Case, Beadie Dawson, Margery Bronster, Earl Anzai, Lyn Anzai, Nathan Aipa, Judge Kevin Chang, Judge Eden Elizabeth Hifo, Judge Patrick Yim, Miller & Chevalier, Morgan Lewis & Bockius, and others to be named upon discovery.

Internet References:

Bias Complaints / Motion to Recuse


Documents, News Articles and Related Links$6Billion.htm

First Amendment Rights/Obstruction of Justice

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

RICO Lawsuit – 99-CV-00304-DAE-BMK

Equity 2048 -The Richards Report

Pages 1-26; Pages 26-49; Pages 50-75; Exhibit 2; Exhibit 2b

XL Reinsurance Policy No. XLRKS-01796

Equity 2048 – Related Correspondence and Documents

IRS Closing Agreement for Kamehameha Schools

The Na Kumu Book Advisory Group

Broken Trust: Greed, Mismanagement & Political Manipulation

Lost Generations: A Boy, A School, A Princess

KITV Special Report