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The Honolulu Advertiser
Posted on: Saturday, October 22, 2005

Ex-employer sues man accused of embezzling

By Curtis Lum
Advertiser Staff Writer

Kenneth Peters Jr.

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A Salt Lake man who police say may have staged his own disappearance in March has been sued by his former employer and is accused of stealing more than $50,000 from the company.

Flight School Hawai'i Inc. filed the Circuit Court lawsuit yesterday against Kenneth J. Peters Jr. He worked as the comptroller for the firm from September 2002 to January 2004.

During that period, the lawsuit said, Peters embezzled more than $50,000 by falsifying company checks for his benefit. Peters also used company credit cards for personal use, the lawsuit said.

Flight School Hawai'i is seeking reimbursement of the money, as well as an undetermined amount in damages.

Peters could not be reached for comment yesterday.

In June, prosecutors charged Peters with 11 counts of forging checks from the accounts of Flight School Hawai'i and AirFrame & PowerPlant Service Inc. He also was charged with theft, money laundering and fraudulent use of a credit card.

Peters was under criminal investigation when his 2005 Mercedes-Benz was found March 22 on a cliffside near the Makapu'u Lookout. He was the subject of an extensive search, but was found three days later when he was intercepted by customs officers at the Honolulu International Airport on his way back from Bangkok, Thailand.

Police said at the time that Peters may have faked his disappearance because he was under investigation.

Reach Curtis Lum at culum@honoluluadvertiser.com.