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The Honolulu Advertiser
Updated at 3:54 p.m., Wednesday, July 30, 2008

$8 million judgment issued against Big Island mortuary

Advertiser Staff

A Circuit Court judge has awarded $8 million in damages to some 100 Big Island customers of a defunct cemetery and funeral services company.

Judge Sabrina McKenna today found Robert, Momi and Bobbi Jean Diego, former operators of Diego Mortuary Inc., liable for $8 million in damages. The three were convicted of criminal charges in 2004 related to the theft of some $531,000 from customers' trust funds held by the mortuary company.

The Diegos did not defend themselves in the civil suit, filed in 2004 by attorney Michael Green.

Green also is seeking $1 million in special damages, which the lawyer said the state should pay because of lax oversight of the Diegos' business by regulators in the Department of Commerce and Consumer Affairs. The judge has not ruled on that request.

Deputy Attorney General Randolph Slaton, who represented the state in the suit, referred questions to Assistant Attorney General Lisa Ginoza, who could not be reached for comment.

Brian De Lima, a Big Island attorney who represented Robert Diego in the criminal case, said he could not comment on the civil case.

According to court records, each of the Diegos was ordered to pay $50,000 in restitution in the criminal case. Robert Diego is currently paying $200 per month and De Lima said he believes his client is current in those payments.