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The Honolulu Advertiser

Posted on: Friday, April 22, 2005

Fired executive quits judicial selection panel

By Deborah Adamson
Advertiser Staff Writer

An executive who was dismissed by Bank of Hawaii has stepped down from the state Judicial Selection Commission.

Wes Imamura has notified Senate President Robert Bunda of his decision to leave the commission, according to the legislator's office. He was appointed to the commission on March 10 by the senator.

On March 31, Bank of Hawaii dismissed 11 out of 27 employees in its insurance services unit — including its president, Imamura — for indicating that they took continuing education classes when the classes had been canceled, said Ron Leach, an executive vice president at the bank.

State law requires insurance agents and brokers to renew their licenses every two years, which includes taking continuing education classes, said Insurance Commissioner J.P. Schmidt.

Bank of Hawaii received certification to teach the classes to their employees, Schmidt said. But after the incident, which occurred in September 2004, the bank gave up its certificate.

After an internal investigation, the bank voluntarily informed the state of the violation on April 1, Leach said.

Bank of Hawaii does not face any sanctions, Schmidt said.

Since then, the bank has brought back a former chairman of the unit, Michael Groholski, as a consultant until a new president is hired.

Leach said he is not aware of any clients leaving as a result of the firing. The unit's clients are mainly businesses, not individuals.

Hawai'i Insurance Division likely will levy sanctions against employees who were fired for submitting false information to the state.

"There will probably be some kind of sanction for each of them. How serious that sanction is will depend on the facts" and any mitigating circumstances, Schmidt said. "It is very important that all licensed individuals and companies are truthful in the information they present to the insurance division."

Offenders face fines of up to $10,000 each, have their license suspended or revoked, or both.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.