HONOLULU — The federal government is trying to foreclose on the assets of Sandwich Isles Communications Inc. to recover $128 million in principal and interest the company owes.
The lawsuit filed by the U.S. Department of Justice is over delinquent U.S. Department of Agriculture loans, the Star-Advertiser reported Thursday.
Sandwich Isles has an exclusive license to provide telecommunications services on Hawaiian Home Lands, and borrowed more than $166.7 million from the department to help finance its fiber optic telecommunications network across the Hawaii Islands.
Hawaii political leaders, including the late U.S. Sen. Daniel K. Inouye, supported Sandwich Isles’ efforts to obtain more loans, but according to the lawsuit filed last week company founder Albert Hee told federal officials in 2013 that the company could no longer make the payments of more than $1 million per month for its loans.
Hee was convicted of federal tax fraud in 2015 and sentenced to 46 months in federal prison for concealing from the IRS that his company deducted $2.75 million as business expenses to cover Hee’s personal expenses.
Among the supposed business expenses cited by prosecutors in the tax fraud case were $718,559 the company paid for college tuition and living expenses for Hee’s three children, $92,000 in payments for massages for Hee and $121,878 in credit card charges made by Hee for personal expenses, according to federal court filings.
The suit seeks a foreclosure judgment against Sandwich Isles and an order requiring the company’s assets be sold.
Sandwich Isles said that it is still reviewing the complaint to explore potential next steps.
“Despite these constraints, Sandwich Isles Communications continues to operate and serve our customers,” the company said.
Sandwich Isles provides telecommunications services to about 3,600 customers on Hawaiian Home Lands, but has been pummeled by legal and other challenges that threaten its survival.
more corrupt government loans to corrupt business……who the hell monitors the use of taxpayer money??????ops,i know……more corrupt government pukes…..disgusting
That would be the swamp!
I am shocked by corruption….those kids must have been living high on the hog! 92K in massages must have been with Happy Ending included!
You’re shocked by corruption in this state? I’d be amazed if there wasn’t. Oddly enough the communication company that operates in the “non homelands” seems to do okay.
Let’s see, one was paid and supported by the government, and the other by capitalism. One put up little capital, borrowed from the government, wasted and stole the money and failed. The other put up its own capital, charged fees from its customer base to allow it a profit and succeeded. Is there some kind of lesson there? One we should have learned by now.
I was being Facetious POwest…..but I am sure you got my drift by my other posts! Your a smart dude.
I assumed so, and so was I! How could any intelligent person be surprised by the conduct of government around here after all the incredible displays of incompetence the past few years. It would shame Detroit.
I want to know where all those “Happy Endings” took place?