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The Honolulu Advertiser
Updated at 8:00 p.m., Wednesday, April 30, 2008

Theft suspect caught in Oregon

By Jim Dooley
Advertiser Staff Writer

The only man charged with a crime in the financial collapse of the RightStar group of cemeteries and funeral companies here has been apprehended in Oregon.

John F. Dooley, 56, was arrested by Polk County sheriffs on Sunday and will be returned to Hawai'i to face charges that he stole nearly $51,000 in funeral plan funds held in trust for customers of the company and its affiliates, according to state Attorney General Mark Bennett and a copy of the newly-unsealed indictment

Dooley was secretly indicted by an O'ahu grand jury in December 2006 and authorities have been looking for him ever since. The Advertiser reported the secret indictment in March of this year.

Bennett's office is also suing Dooley, other RightStar principals including his wife, Kathy Hoover, and various other companies and individuals affiliated with RightStar, alleging the improper removal of some $30 million from customers' trust funds.

The RightStar companies have been operated by a court-appointed master since 2004 and efforts to sell the businesses have so far proved unsuccessful.

The companies operate Valley of the Temples cemetery on O'ahu, Homelani and Kona Memorial Parks on the Big Island and Maui Memorial park on the Valley Isle. Other interests include "pre-need" funeral plans including 50th State Funeral Plan.

State officials have repeatedly issued assurances to some 50,000 customers holding "pre-need" funeral services contracts that the contracts will be honored. Bennett repeated those assurances yesterday.

Dooley has previously denied any wrongdoing in connection with his operation of RightStar, telling the Advertiser in an interview that the state civil charges of fraud at RightStar were "very simplistic."

He declined to go into details, but added, "When the truth comes out, it's going to be a completely different picture" than the one painted by the state.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.