Posted on: Tuesday, October 26, 2004

Aloha sues Roberts, 2nd tour firm

By Dan Nakaso and Jim Dooley
Advertiser Staff Writers

Aloha Airlines has sued Roberts Hawaii Tours Inc. and Roberts' bankrupt competitor, Trans Hawaiian Transportation Inc., alleging they devised a "scheme" to sell packaged tours but failed to pay Aloha for at least $2.5 million worth of airline tickets.

The allegations contained in a state Circuit Court lawsuit center on Hawai'i's two largest tour and transportation companies. The lawsuit follows a separate bankruptcy claim by Aloha against Trans Hawaiian Transportation, which sought federal bankruptcy protection in 2001.

Representatives for Aloha and Roberts declined comment on the suit.

Trans Hawaiian is a former unit of Honolulu-based International Management & Services Inc. founded by Raymond Miyashiro.

Miyashiro sold Trans Hawaiian in 2000 to a Nevada company run by Mark and Scott Iwamoto, sons of Robert Iwamoto Jr., chief executive of Roberts Tour and Transportation.

Before it filed for bankruptcy protection, Trans Hawaiian allegedly failed to pay at least $2.5 million to Aloha, according to Aloha's lawsuit.

The suit claims that the Iwamotos and other company directors, "by their complete control over and management of the Trans Hawaiian Companies, used the Trans Hawaiian Companies as alter egos of themselves."

The suit said, "The defendants devised and operated a scheme whereby the defendants, through the enterprise, sold the Aloha Airlines (tickets) ... without intending to pay Aloha Airlines ... "

The defendants then transferred the proceeds from ticket sales, the suit says, "to their benefit, prior to the bankruptcy filing of the Trans Hawaiian Companies, thereby defrauding Aloha Airlines."

Aloha's suit alleges violations of the Racketeer Influenced and Corrupt Organizations Act. The 1970 law was created to prosecute organized criminals.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or at 525-8085.