NEWS &NOTES Iniki scam A lawyer who exploited the tragedy of Hurricane Iniki will be doing hard time. Jerrold Chun was sentenced to 10 years in prison for theft, unlawful operation of a business, and money laundering after the Honolulu
NEWS &NOTES
Iniki scam
- A lawyer who exploited the tragedy of Hurricane Iniki will be doing hard time. Jerrold Chun was sentenced to 10 years in prison for theft, unlawful operation of a business, and money laundering after the Honolulu attorney was convicted of diverting $7.9 million to himself from Hawaiian Underwriters Insurance Co. and United National Insurance Co. Ltd. after their Hurricane Iniki claims exceeded their cash resources.
In 1992, the Hawaii state insurance commissioner took control of the companies, which are now known as Hui/Unico in Liquidation Inc. Chun took money from the company while it was supposedly liquidating its assets to pay off as many of its remaining claims as possible.
Air Capacity to Hawai‘i up 27 Percent
- Planned air seat capacity from Canada to Hawai‘i during the peak winter travel season (Oct. 2004-April 2005) is projected to be up 27 percent versus the same period one year ago, according to the Conference Board of Canada.
Although scheduled air seats between Canada and the Islands are down 6.7 percent for the first ten months of 2004, CBoC states that new service by Harmony Airways (51,220 total added seats between October 2004 and April 2005), and increased airlift by Aloha Airlines (+8) and Air Pacific (+10) are the main factors behind the Air Canada, which maintains approximately 60 percent of the air seats from Canada, is expected to have a seven percent reduction in capacity for the seven month period.
300 million international visitors
- The Pacific Asia Travel Association (PATA) forecasts a record 300 million international visitor arrivals to the Asia-Pacific region, according to their Issues & Trends newsletter. If this projection holds true, international Asia-Pacific arrivals will surpass the previous record of 274.8 million in 2002, by 10 percent. PATA states that the main drivers for visitor growth this year are pent-up demand, deals offered by lowcost air carriers, an easing in China’s outbound travel regulation policy, a strong Euro, and strong Euro and strong economic performances in the Asia-Pacific source markets.
Kaua‘i’s best dogs
- Kaua‘i’s Best Hot Dogs in front of the Home Depot in Lihu‘e is celebrating its first year in business. Formerly named Volcano Dogs, owners Mike and Dara Fugett of Wailua renamed their shop after hearing customers remark that their Hebrew National Brand 100 percent Kosher All-Beef Hot Dogs and Polish Sausages were the best dogs on the island. They also sell a veggie dogs.
Hawaiian and Island Air e-tickets
- Hawaiian Airlines and Island Air are offering interline e-ticketing for their mutual customers. The new e-ticketing agreement further enhances the code share partnership established between the two carriers in August and makes flight connections even more convenient to Molokai, Lanai, and West Maui. Mutual customers of Hawaiian and Island Air having travel itineraries with flights on both airlines purchsase a single e-ticket and check in only once at the original point of departure. Interline e-tickets are now being issued by Hawaiian and Island Air through their respective reservation centers, at airport locations and ticket offices. In addition, e-tickets for Hawaiian are scheduled to be available at all domestic travel agencies by end of December.
Host Marriott sells Courtyard
- Sarofim Realty is paying Host Marriott $92 million for 85 percent of its stake in Courtyard. Sarofim Realty Advisors, acting on behalf of an institutional investor it did not name, agreed to buy majority control of Courtyard by Marriott. The former Kauai Coconut Beach Resort was recently renovated and will be marketed as a Courtyard by Marriott. The 120 Courtyard hotels have been jointly owned since 2000 by Marriott International Inc., the company behind the Marriott brand, and Host Marriott Corp., a spin-off that invests in hotels, Marriott and otherwise.
15 days left to get Medicare credit
- The deadline for low-income seniors to get $600 in free Medicare drug benefits is Dec. 31. The drug credit is part of Medicare’s drug discount card program launched this year, which offers discounts on prescription drugs to nearly anyone on Medicare. Even better, those with single Medicare beneficiaries whose yearly income falls below $14,445 and to married couples whose income is $19,386 or less get the extra $600 credit. In Hawai’i, the credit is available to Income is the only test. Assets, such as a home or savings account, are not part of the eligibility requirement. Only 20 percent of the those eligible in Hawaii have signed up so far. Sage PLUS, a state-run health insurance counseling program, is offering free help to seniors who want to apply for the discount drug card or the credit program. Volunteers will fill out the paperwork for seniors in person or over the phone and enroll qualified seniors. Medicare will only offer this drug credit through 2005. Its new prescription drug program — the rules of which won’t be released until next month — will begin Jan. 1, 2006. Call Sage PLUS at 586-7299 or (888) 875-9229, or Medicare at (800) MEDICARE. On the Web at www.medicare.gov. (Source: The Honolulu Advertiser).
New Loea Corp. chief
- Trex Enterprises spinoff Loea Corp., developer of weather-proof data communications, has hired Daniel Scharre as CEO, the company announced this week. Trex’s Lihu‘e facility develops technical ceramics for semiconductor, lightweight optics, ballistics and other applications. Scharre, a CalTech-educated physicist and telecoms specialist, has previously been CEO of Larscom Inc. and Adaptive Broadband Corp. Founded in 1978, San Diego-based Trex Enterprises is a maker of electronic components with 150 employees, many of them in Hawaii. At the Maui Research and Technology Center, it works on the design and development of active pixel image sensors used in night vision devices. Trex also does research and development and maintenance at the Air Force optical site at the top of Haleakela.
Fat tax collection
- State tax collections in November increased 50.7 percent over the same month last year, thanks to what is called the “double weekend effect.” The Department of Taxation reported that $347.9 million went into the general fund last month, compared with $230.8 million in November of last year. The end of October fell on a Sunday, thus pushing a portion of the month’s revenue into November. In addition, November 2003 collections were lower than normal and the month also ended on a Sunday, pushing a portion of its revenue into December 2003. The largest source of revenues, general excise and use taxes, increased by $83.2 million. Lower tax refunds partially contributed to an $18.3 million increase in individual income taxes in November. In addition, taxes withheld on wages continued to grow strongly in November because of the strong labor market in Hawai‘i. The state’s tax take for the first five months of the fiscal year was $1.5 billion, 18 percent more than the same time period the previous fiscal year.
