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Don’t get fooled again

A couple of con men from the past have us wondering...

Cover

Cover image for Apr 1, 2009

For the first time in 11 years, Honolulu Weekly has an April 1 edition this week. No pranks or fake stories from us this year, though—instead, we’re thinking about how Wall Street didn’t need a calendar to make fools out of all of us, and of how often even the most circumspect of us end up with egg on our faces—and all too often, holes in our wallets.

As the national—and increasingly the state—economy comes crumbling down around us, we’ve begun to wonder who will eventually emerge as the public face of this crisis here in the Islands. While we’ve seen more than our share of hardship, the fallout from the global meltdown hasn’t yet produced a homegrown villain as in previous economic bubbles, like the construction boom of the 1960s or the real estate explosion of the 1980s, have done.

What was that third name again?

Bishop. Baldwin. Dillingham. Each of these names is writ large in Hawaii’s history, each representing generations of wealth and power. Taken together, they would form an unrivaled constellation of political and economic power unrivaled. Of course, the three kamaaina dynasties never did join forces, so a malihini named Ron Rewald took it upon himself to bring them all together.

In 1978, Rewald hung a shingle that read “Bishop, Baldwin, Rewald, Dillingham & Wong” and quickly fell into favor with the local gentry, investing millions of dollars on behalf some of Honolulu’s most prominent businesses and families. Rewald moved into a sprawling estate near Kuliouou and traveled around town in a black stretch limo that featured a coat of arms and Rewald’s initials on the doors. He bought up property around the island and generally came across as a hugely successful local financier in an era when they were growing on trees, promising 20 percent returns on investments and claiming a waiting list of two years to contribute funds. Sound familiar?

Of course, you can’t fool all the people all the time, as even Bernie Madoff recently learned, and eventually people started asking questions of this strange new giant of local finance. The authorities stepped in, and, as Frank De Lima later sang, “Bishop, Baldwin, Dillingham were nowhere to be found…all they found was Rewald, and some local guy named Wong.”

Oops.

Rewald’s defense against charges of massive fraud and theft involved what he alleged was a secret CIA operation based in Honolulu, responsible laundering money for US covert activities around the world. Perhaps it’s not surprising that a con man would make extravagant claims when backed up against a wall. What was surprising: it seems to have been true. Maybe. At least in part. Rewald was able to produce substantial documentation of his CIA connections, and by all accounts he was meeting regularly with the local station chief to relay some sort of information.

Whether he was a government operative or an old-fashioned con man, however, the question remains: why would smart, successful local folks trust a malihini guy they’d just met with huge sums of their money? Because Rewald knew to aim high. Faking the involvement of the Bishops, Baldwins and Dillinghams seems, in retrospect, almost pathetically foolish. A lesser pro might have taken it a little easy, switched a letter or added an “e” somewhere. What Rewald knew, however, was that, especially during boom times, the best cons are the ones that aim for the sky.

King for a day

Chinn Ho was nobody’s fool. The pioneering local businessman built his banking, real estate and media empire on hard work and brilliant business instincts—and had to run circles around the racist Honolulu establishment to do it. During the 1950s and ’60s, Ho rode a massive wave of construction and investment to create wealth unheard of for previous generations of local Chinese-American businessmen, and knocked down existing racial barriers in doing so. His accomplishments were such that his obituary was carried in the New York Times under the epitaph “major figure in the success of Hawaii’s Asians,” but even Ho was no match for the guile and daring of one Sammy Amalu.

Amalu, a lifelong check-kiter and swindler who claimed to be descended from Kamehameha the Great, put together a scam for the ages when, in 1962, he came within one day of “purchasing” local Sheraton properties controlled by Ho, along with other Hawaii real estate holdings, in deal worth a then-whopping $62 million. The deal would have been the biggest in modern Hawaii real estate history.

That the scheme advanced as far as it did—Time reported that Sheraton executives were waiting to sign the deal in New York when word came in that Amalu had been arrested in Seattle on an unrelated bad-check charge—is a testament to Amalu’s sheer chutzpah.

Acting through a noted Honolulu realtor and employing the services of a California based “pro-regent,” Amalu had convinced some of the wariest and sharpest minds in local and national finance that some sort of shadowy global investment conglomerate was prepared to take possession of some of Waikiki’s premier addresses, including the Ilikai and the Sheraton Waikiki. Local folks in and outside the press speculated as to who was financing the secretive purchase. Was it King Saud? Swiss nobility?

It was just Sammy Amalu, a well-known local character who had previously duped San Francisco society into believing he was some sort of Indian prince, and he had apparently done the whole thing more or less for the attention. Amalu was sentenced to prison and began a correspondence with Honolulu Advertiser publisher Thurston Twigg-Smith, a Punahou classmate who soon began publishing Amalu’s missives as a regular column in that paper.

Amalu died in 1986. In a self-penned obituary, he had written, “Sing no sad songs over my mortal dust,” he wrote. “I have known laughter. I have known tears. I have tasted victory. I have sipped of failure. Is not all this enough?”

Thanks to his legendary charm, Amalu did not end up a pariah, but he did become synonymous with an era of freewheeling cash and shady deals that changed Honolulu forever, and not always for the better.

This year’s fools?

Even in the Internet era, we’re still often a step behind the continental United States, and that’s true for economic trends as well as cultural ones. We’re only now beginning the precipitous decline in housing prices—and the rise in foreclosures and unemployment—that have already decimated many similar markets to the east. And while many local companies are struggling, we haven’t yet found a local face to put on this mess. Recent reports indicate that most large Honolulu financial institutions are sound, but that doesn’t mean there isn’t some very bad news in the offing for some group of investors.

We talk a lot around here about our Island values and care and concern for others, and of course it’s true that this is a compassionate community. But it only takes one bad apple to spoil the party. Is there another Ron Rewald out there, sweating out the numbers while putting off nervous investors? We’ll have to wait and see—and hope we’re not the ones getting fooled.



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This week

2013 Summer Books

On a breezy May evening, in the courtyard of the state library, local publishers, writers and book designers gathered to celebrate the 2013 Ka Palapala Pookela Awards, sponsored by the Hawaii Book Publishers Association. The place was packed, and I was struck by such a healthy showing for an industry whose demise has been predicted since before the advent of Amazon.

Unlikely Pairings

I was intrigued recently to channel surf upon a deft interview of Susanna Moore on PBS Hawaii. Moore is the nationally acclaimed author of nine books, perhaps best known for her luminous My Old Sweetheart and other Hawaii novels, as well as the rough-sex 2004 noir In the Cut.

A Long Lost Era

Kabuki Boy, a novel, reads almost like an autobiography filled with vivid details that transport us to 19th-century Japan during the “Tokugawa Era.” Fast-paced and humorous, it aptly dramatizes an ancient dramatic art. The hierarchy between the social classes of samurai, geisha, peasants and monks comes alive from the page, seen through the eyes of Myo, a young boy aspiring to become a kabuki actor.

Panek Point

Calling this big fat novel Hawaii was bound to raise eyebrows. Hey, come run to the schoolyard to watch Mark Panek throw down!

Inward Journey

Beautifully designed, with outstanding photography of India and Tibet by Linda Connor, the newest edition of Manoa is especially ambitious in its choice of subject/theme. It attempts to present diverse interpretations of the meanings and implications of the term “freedom,” doing so in the forms of fiction, essays, poetry, memoir and drama.

Gardens

This new book of poetry is easy to read, yet I had all kinds of strange dreams after reading it. The poems are short but poignant–a lot of thought and crafting went into every well-placed word.

Brotherly Tears

When the young narrator, Landon DeSilva, of Tyler Miranda’s novel Ewa Which Way, watches an episode of “Leave It To Beaver,” he sees a family whose idea of discipline is a father and son discussion without “head cracks” or “cuss words.” In the episode, Eddie Haskell and Wally Cleaver talk about the Beaver’s highjinks, and Landon’s friend says, “just like your brudda . .

Community

In a poetry class I teach at Windward Community College, a student recently did a presentation on coming-out poems and presented her own. One of her peers asked a thoughtful question: “If you are a gay, are you automatically part of the gay community?” It’s a question I’ve had about being Asian American–and a poet.

Cruelty

In Wing Tek Lum’s poem “The Red Circle,” a sergeant teaches his soldiers how to use a bayonet during Japan’s infamous occupation of Nanjing, China in 1937: “With a nub of red chalk / our sergeant marks off / a crude circle in the center / of the chest.” The men are instructed to stab everywhere, except the heart. A quick death would be too kind–too merciful.

Wit

“We are selves in a world because we have words,” writes the late poet Tony Quagliano in the preface of his book, Language Matters. In this masterful collection, every line absorbs the reader into the writer’s world, revealing his intimate thoughts on politics, writing, Hawaii and life.

The Romance of Sunset

A sort of team anthology, Sunset Inn: Tales from the North Shore is a collection of fiction, poetry and a play published by the Aloha Romance Writers, who admittedly chose–over margaritas and Mexican food–the conceit of a colonial-style seaside inn, described in Patrice Wilson’s poem “This Haven” as “white as salt” and “bleached coral in the sea,” as a central setting for their book. Like the landscape and the building, the collection holds stories of love found, lost and always remembered, some of which are based in Hawaii history and some from a contemporary eye, but all adhering to the familiar elements of the romance genre and the romantic.

Love Lore

In Huna Magic: The Hawaiian Odyssey, Dawn Star puts on a modern spin on Hawaiian mythology and folklore. Set in ancient Hawaii, the book starts off with the classic forbidden love story between a young woman, Kuulei ke Anuenue and a handsome man, Kai, who happens to be the chiefess’s love slave.

Reassembling

The reader weary of cutesy novels with multiple story lines that are obviously going to be inextricably tied together, somehow, might not want to venture too far into Darien Gee’s The Avalon Ladies Scrapbooking Society. But if it’s comfort food for the brain you’re after, you’d be missing out.

Green Noir

Set in Hawaii, Saving Paradise, Mike Bond’s sixth detective novel, tells a passable if unevenly written story featuring one Pono Hawkins, a Special Forces vet (Afghanistan), celebrated international surfer and correspondent for ocean magazines. He also insinuates himself into the woes of others, in this case a beautiful young thing whose lifeless body bumps into Hawkins as he goes surfing at dawn.

Decolonizing Our Future

Confucius said, “If your plan is for one year, plant rice; if your plan is for 10 years, plant trees; if your plan is for 100 years, educate children.” The philosopher’s sagacious message seems to align with the alternative approach to education seen in Hawaii’s charter school system. Noelani Goodyear-Kaopua’s The Seeds We Planted is an ethnography articulating the establishment, growth, and success of Halau Ku Mana, one of the few Hawaiian culture-based charter schools in Honolulu.

Navigating Selves

Leilani Holmes’s richly chronicled journey toward a reconnection with her Kanaka Maoli culture opens with the epigraph: “For those who came before us. In hopes that we act on behalf of your bones.” Ancestry of Experience is a thoroughly researched and deeply genealogical journey.

Think Pink

There’s something foreboding about the cover of Pink Globalization. It’s a dark, monochromatic picture of an enormous grey Hello Kitty gazing ominously into the night in front of a corporate-looking building. The picture is certainly intriguing and symbolic–Hello Kitty is taking over the world.

Hardships, Loneliness, Triumphs

A deeply researched and careful weaving of previously unheard voices can be found in Mai Lepera, adding another layer about leprosy patients exiled to settlements at Makanalua peninsula in the 19th century. Keri A.

Transcending Prejudice

If resiliency spoke of a group of people, the Japanese population of the then-Territory of Hawaii during World War II claims the description. With one specific attack on December 7, 1941, an island-wide prejudice against all immigrant Japanese was born, painting a picture of angry nationals who plotted Hawaii’s demise.

Mano

An ambitious, immensely rewarding product of nearly five decades’ research and teaching (beginning when the author was l3 years old), Patrick Vinton Kirch’s A Shark Going Inland is my Chief bids fair to be a definitive, almost exhaustive look at “the island civilization of ancient Hawaii.” Divided into three major parts, Shark starts with Cook’s arrival when Hawaii was four major kingdoms in the midst of creating stratified societies.Kirch deals with religion, evolving social structures and belief systems to make ancient Hawaii come alive. Especially noteworthy are beautiful descriptions of the making of canoes, particularly the vaka moana, capable of transporting families.

Charts for the Band

Music stores abound with compilations of “50 Favorite Songs” for everything from jazz to the Beatles to Bach. Now it’s time for the mid-20th century music of Hawaii.

Racism of Record

Compiled by Christopher LaVoie, Annexation! presents the imperialist agendas of the U.S.

Charting Our Ancestral Past

Hawaiki Rising by Sam Low tells the epic saga of voyaging on the Hokulea, which, as every Island schoolchild should know, is a traditionally constructed Hawaiian sailing vessel that is steered by observing natural elements, without instruments or maps. Low, a part-Hawaiian anthropologist who participated in three voyages, follows the Hokulea through conception, construction, and navigation.

From the Outside

The feeling of being an outsider in one’s beloved homeland is the theme underpinning Pamela Frierson’s fluid and honest nature writing. In her books, The Last Atoll: Exploring Hawaii’s Endangered Ecosystems and The Burning Island: Myth and History in Volcano Country, Hawaii, Frierson explores Hawaii’s unique ecosystems, while also searching for personal relevance where she grew up very aware of being merely a “second-generation colonist.” The shadows of a world unknown drive the writer, teacher and homesteader to attach to the landscape, pursuing a deeper understanding of Hawaii’s natural order, and, through those experiences, a sense of belonging.

Bearded beauties

Donald Hodel’s Loulu: The Hawaiian Palm is winner of this year’s Ka Palapala Award for Excellence in Natural Science. Loulu the Hawaiian Palm Donald R.

Missed Connections

Charlotte A. Tomaino, neuropsychologist and former nun, started with the intriguing concept of explaining how grace and spirituality can “awaken” the brain to a fuller potential through expanded consciousness.

The Naked Truth

Sharon Hicks’ How Do You Grab a Naked Lady recounts the relationship between Hicks, her mentally ill mother and idealist father. We meet Hicks at age 16 as she witnesses her mother parading around a mall in the buff, yelling and cursing–one of many manic episodes we’ll see during the book.

Last Train to Ho’opili?

One paradox of TheLast Train to Zona Verde, Paul Theroux’s 46th book and his latest about Africa, is that it’s also one of the best meditations on Hawaii you’ll ever read. But first, why Africa?

Every Reader for Himself

Confirming rumors, Barnes & Noble’s (B&N) Kahala Mall bookstore will close when its lease expires in January 2014. There are no current reports concerning B&N’s Ala Moana location, but it’s probably a matter of when, not if, management installs a T-shirt store.

Island Girl

Last weekend, Susanna Moore was in town to read from her new novel, The Life of Objects. A striking beauty–high cheekbones, fine features, long white hair with an inky streak that matches her brilliant black eyes–she wore a sleeveless blouse, full cotton skirt and rubber slippers.

A Traveling Light

We were out at Tongg’s surf break when the world’s best-traveled writer paddled past in a kayak. I said, “Paul Theroux?” Mindy nodded.

CIVIX

KAKAAKO MEETINGS The HCDA will host a series of meetings to discuss the Kakaako redevelopment plan and how rail will fit in with those plans. The meetings are open to the public.

Make Our Day

On May 13, Common Cause Hawaii assembled a panel, titled “The Good, the Bad and the Ugly,” to deconstruct lessons from the recently ended 2013 Legislative Session. Commentators included Rep.

Homeless Plan

Mayor Caldwell is winding down his public town-hall meetings campaign. The meetings are designed to update the public on the progress of the Mayor’s major first-year initiatives: repaving the roads, getting TheBus routes restored, making the city’s parks beautiful, fixing Honolulu’s sewer infrastructure, building rail better and, most recently, solving homelessness.

Pacific Pivot

During a 2011 speech to the Australian Parliament, President Obama declared: “The United States will play a larger and long term role in shaping [the Pacific] region and its future.” On May 10, the Center for Strategic and International Studies (CSIS) Pacific Forum hosted a panel discussion that sought to determine what a U.S. “pivot” toward the region would look like and what the reaction to increased U.S.

The homeless experience

I picked up your May 15 issue with great anticipation because on the cover was a photo of a person experiencing homelessness who I have had numerous interactions with (“Derelict Downtown,” May 15). He is someone I have always found to be articulate and friendly–an ideal person to talk to if one wishes to learn about experiencing homelessness.

Hawaiian rights

The puppetmasters controlling the creation of the Hawaiian Nation have manipulated Hawaiians who have signed up for any Hawaiian registry to become captive members of Kanaiolowalu, the Native Hawaiian Roll Commission. Those bills were heard this session and were passed by the Senate in the Tourism and Hawaiian Affairs Committee chaired by Brickwood Galuteria and the Judiciary and Labor Committe chaired by Clayton Hee, although the forced enrollment is unconstitutional.

Money over land

The Land Use Commission, the Honolulu Planning Commission, the Zoning Variance Commissions and all the other BS commissions are hijacked by big business (“Hoopili Miss,” May 15). Judge Rhonda Nishimura’s head is buried in the sand if she doesn’t recognize the votes were bought.

Cinema for all

I try to not miss a Redford film, and, of course, I can relate to events of the ’60s (“Last Round-Up,” May 8). It is disappointing that The Company You Keep is being shown only at Kahala Theatre.

Tea time

Aloha, I am Elyse. Please let me know if you have any questions, I would love to answer them (“Just Our Cup of Tea,” May 15).

Corrections

In last week’s “Derelict Downtown” (May 15), we mistakenly listed Kirk Caldwell’s campaign phone number. To contact the Mayor, please call 768-4141.