Posted on: Tuesday, June 10, 2003

Bank sues ex-Bishop trustee, husband

Advertiser Staff

WAILUKU, Maui — Bank of Hawaii has filed a lawsuit in Maui Circuit Court seeking to collect on a $1.1 million debt by foreclosing on two properties owned by former Bishop Estate trustee Lokelani Lindsey and her husband, Stephen.

The bank said the Lindseys executed a promissory note for $672,000 in June 1996 and a second one for $411,934 in August 1997, both while Lokelani Lindsey was earning as much as $1 million a year as a trustee for the charitable trust now called Kamehameha Schools.

She and other former Bishop Estate trustees were ousted in 1999 amid allegations of mismanagement and abuse of power.

The Bank of Hawaii lawsuit filed Friday seeks $1.1 million in principal, interest and miscellaneous costs, and requests that a commissioner be appointed to sell the Lindseys' property at Waiehu Heights on Maui and on O'ahu's North Shore.

Lindsey was sentenced in October to six months in federal prison on money-laundering charges in connection with a bankruptcy case involving her sister. She was allowed to delay the start of her incarceration until Aug. 4 to care for her ailing husband.