BUSINESS BRIEFS
State alleges securities violations
Advertiser Staff and News Services
The state securities commissioner has filed a preliminary cease-and-desist order against Sheila Turner for allegedly selling more than $1 million of unregistered securities to Hawai'i investors.
The order alleges that Turner violated the state's securities registration and antifraud provisions. The state is seeking permanent injunctions against future violations, and is also seeking restitution, and administrative penalties of $300,000.
Turner dealt in viatical settlement contracts, a transaction in which an insured person who is usually terminally ill sells the benefits of his or her life insurance policy to a third party in return for a lump-sum cash payment, according to a news release from the insurance commissioner's office. The purchaser realizes a profit if, when the insured dies, the policy benefits paid are greater than the purchase price, adjusted for time value.
"Viaticals, like many securities, can be complex," said Tung Chan, securities commissioner. "Investors should make sure they understand the contracts and approach them with care."
HEALTH COALITION MAY APPEAL RULING
The Hawaii Coalition for Health said it may appeal the dismissal of its federal lawsuit challenging the state's award of $1.5 billion in Medicaid contracts to two Mainland-based health plans.
On Thursday, Federal Judge J. Michael Seabright dismissed the coalition's suit, marking the second time a federal court has tossed out a lawsuit challenging the state Department of Human Services' award of the contracts to units of UnitedHealth Group Inc. and WellCare Health Plans Inc. The earlier lawsuit was filed by AlohaCare, which lost out in bidding on the three-year contracts.
The contracts call for providing healthcare to 37,250 low-income seniors, and blind and disabled people who currently receive treatment through a fee-for-service program.
Rafael Del Castillo, attorney for the coalition, said Seabright has yet to issue a written decision explaining the basis for his dismissal. He said a decision on an appeal will be made once the judge's findings are available.
LIFEBED APPROVED FOR EUROPE SALES
Hoana Medical Inc., a Honolulu-based medical technology company, said its LifeBed Patient Vigilance Systems has been cleared for wide use in Europe.
The designation of Conformite Europeene Mark, or CE Mark, is similar to U.S. Food and Drug Administration clearance. It indicates the product meets European health, safety and environmental quality standards.
Hoana's LifeBed system allows patients' vital signs to be monitored at all times without intrusive wires or devices being hooked up to their bodies.
Hoana said it was able to complete the CE Mark certification process in under six months because of its experience in getting FDA clearance.
FIRST HAWAIIAN DONATES $10,000
Pacific Health Ministry has received a grant of $10,000 from the First Hawaiian Bank Foundation to support a program that provides free health screenings and emotional/spiritual support to low-income seniors.
The foundation is the charitable arm of First Hawaiian Bank. In 2007, the foundation and bank contributed $3.5 million to more than 350 nonprofits.
First Hawaiian Bank, with assets of $12.75 billion, is Hawai'i's oldest and largest bank, with 58 branches in Hawai'i, three in Guam and two in Saipan.
