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John Waihee III
Funeral home failure allegations
Former John Waihee faced some heat after legal papers were filed in Fall 2010 in state court. The papers make new allegations about Waihee’s role in the 2004 financial failure of Hawaii’s largest group of funeral homes and cemeteries.
This six-year legal war over the recovery of $40 million taken from the funeral trust accounts of 50,000 RightStar Hawaii customers.
A court hearing on the new charges set for Monday, October 18, was delayed indefinitely because one of Waihee’s co-defendants in the case filed bankruptcy papers the week prior.
The bankruptcy was filed by local businessman Reed B. Rohrer, who served as co-trustee with Waihee and two other men from 2001 to 2004 for millions of dollars held for RightStar customers in “pre-need” and “perpetual care” trust accounts.
Comerica Bank and Trust, the new trustee for RightStar customer accounts, said in court papers last month that Waihee, Rohrer and the other trustees, as well as RightStar principals, “wrongfully withdrew and invested more than $40 million from the trusts.”