Broken Trust: Greed, Mismanagement & Political Manipulation at America's Largest Charitable Trust

by Samuel P. King, Randall W. Roth

Princess Bernice Pauahi Bishop was the largest landowner and richest woman in the Hawaiian kingdom. Upon her death in 1884, she entrusted her property--known as Bishop Estate--to five trustees in order to create and maintain an institution that would benefit the children of Hawai‘i: Kamehameha Schools. A century later, Bishop Estate controlled nearly one out of every nine acres in the state, a concentration of private land ownership rarely seen anywhere in the world. Then in August 1997 the unthinkable happened: Four revered kupuna (native Hawaiian elders) and a professor of trust-law publicly charged Bishop Estate trustees with gross incompetence and massive trust abuse. Entitled "Broken Trust," the statement provided devastating details of rigged appointments, violated trusts, cynical manipulation of the trust’s beneficiaries, and the shameful involvement of many of Hawai‘i’s powerful.

No one is better qualified to examine the events and personalities surrounding the scandal than two of the original "Broken Trust" authors. Their comprehensive account together with historical background, brings to light information that has never before been made public, including accounts of secret meetings and communications involving Supreme Court justices.

Genres: History, Nonfiction, Law, Politics, American History

344 pages, ebook

First published March 1, 2006

Reviews

[John · Rating 5 out of 5]

A must-read for people interested in modern Hawaiian history and politics, and those interested in trusts and estates law. The authors were part of a group who set in motion the reforms of the Bishop Estate/Kamehameha Schools, one of the largest charitable trusts in the US. The authors provide a nice history of Princess Bernice Pauahi Bishop, a direct descendant of Kamehameha I, who established the trust on her death. The Trust eventually became captive to corrupt Judicial politics (the trustees were selected by the Justices of the state Supreme Court), who appointed trustees who were extremely well-paid but not competent. Eventually their micromanagement of the School led to their downfall in 1997. Interlaced with this history is the rise of the Native Hawaiian movement in the 1960s which caused the schools to refocus their mission.

Note: this book if FREE on Kindle or as an ebook on the Univ. of Hawaii Press website. If you own an ereader, or you actually like reading on your phone or tablet, there is no reason NOT to get this book.

[Jana Light · Rating 4 out of 5]

A painful look at how greed and thirst for power in the non-profit world can hurt the very causes and communities intended to be served. This account of corruption of Bishop Estate Trustees in the 90's is fascinating and well-told, though I do have some reservations. Throughout the book, King and Roth present one trustee, Stender, as almost above reproach, but he benefited knowingly in enormous ways from the corruption of his fellow trustees, and willingly accepted wildly inflated, inappropriate compensation for his services. He was no hero even if he was the least objectionable. This leads me to suspect this telling is biased regarding other folks, as well. Secondly, almost nothing was told about the actual educational services provided by Kamehameha Schools during this time. I would have liked to know how mismanagement of funds affected the trust's mission and purpose (beyond the obvious emotional toll that was duly emphasized). That seems an incredibly important part of the story. Overall, however, Broken Trust is a fascinating, unsettling look at corruption in one of the largest charitable trusts in the US and into the broadly political landscape of the state of Hawaii.

[Kim · Rating 4 out of 5]

Broken Trust will be added to the short list of books that are essential to understanding Hawaii. If you want to know about the dirty politics, racism and xenophobia that lie beyond Hawaii's beautiful beaches and "aloha spirit," this book is a must-read.

The story is about Bishop Estate, America's largest charitable trust based in Hawaii, and the rise and fall of the trustees who were supposed to be using the money to benefit native Hawaiian children but who instead used it for their own purposes. More than that, though, it is a story about the real Hawaii and an excellent look at the political and social problems that even today plague this little island state that still suffers from a plantation mentality.

To understand what a great feat this book is, you must understand that Hawaii people live more or less by the old Japanese mentality: "The nail that sticks up gets hammered down," or, to speak out and to have an opinion is to be condemned by everyone around you. The authors write with a courage that is rare among writers in this state and for that alone this book deserves a read.

[Miki · Rating 5 out of 5]

Utterly fascinating, infuriating, engrossing, and sad-making read. The Bishop Estate was a charitable trust established by Princess Bernice Pauahi Bishop, bequeathing a huge tract of land and significant assets to set up what become the Kamehameha Schools in Hawaii. At one point, the trust owned 1 out of every 9 acres of land in the state. It had tremendous power and prestige, and also became utterly corrupt at the upper levels. The trustees - appointed by the Supreme Court of Hawaii - paid themselves huge trustee fees, operated in secrecy and just generally violated all of their fiduciary duties. Even more infuriating was the failure of state regulators and oversight agencies to fulfill their duties in holding the trustees to account. It took the publishing of a letter by 5 key community leaders laying out the breach of trust and duty to start the dominos falling, but even then, things got way too political and took too long.

It reads like a soap opera, but is nonfiction.

[Leikela · Rating 5 out of 5]

This book is a WILD ride. It should indeed be required reading, not for law students but for anyone who lives in Hawaii. The main events of the book concluded when I was 8, so I can barely remember anything, and I'm upset that as an adult I knew so little about it. And this is just one piece of rampant corruption that still goes on. (Even the book's conclusion basically said the issue wasn't resolved, just less worse than it was.)

Can't wait for the eventual sequel about Red Hill. That's going to be a fun one.

[Teresa · Rating 5 out of 5]

This book is about the true story of mismangement and manipulation within the Bishop Estate in Hawaii. The Bishop Estate was set up for the benefit of Hawaiian children and is one of the wealthiest charities in the United States. In recent decades the estate seemed to act more as a bank account for some of the trustees who totally disregarded the needs of the children that were supposed to have been helped by the estate. Hats off to the staff of the Honolulu Star Bulletin that were brave enough to print the details of the shameful acts of some trustees. Even as Navy brats growing up in Hawaii in the 1970's we knew the Bishop Estate was important. I'm not sure of the statistics but back then it seemed like everything in the state was either owned by the military, the State of Hawaii, the Bishop Estate or the descendents of the sugar barons. See: To Steal a Kingdom.

If you have an interest in the history of Hawaii and its people do yourself a favor and read this book. Be prepared though, at times you may find yourself shaking your head or even shouting about the total disregard of morals shown by some of the trustees.

Nobody could make this stuff up.

[Sarah · Rating 4 out of 5]

Well-written, depressing account of the insane levels of mismanagement and corruption at the Bishop Estate (the world's largest charitable trust), and its hold on upper reaches of Hawaii's legislature and judiciary. Anger-inducing, to say the least.

[Roberta · Rating 5 out of 5]

How not to be a trustee.

[Sheila · Rating 5 out of 5]

A painful lesson in mismanagement and community betrayal.

[Susan · Rating 5 out of 5]

The sub-title of this book is "Greed, Mismanagement and Political Manipulation at America's Largest Charitable Trust" and that sub-title tells the story. When I moved to The Big Island in 1994, this debacle was already playing out. I couldn't make sense of it then, but this book, written in 2006, spells out the whole ugly tale. The charitable trust established by Bernice "Ali'i Pauahi" Bishop, a descendent of Kamehameha lineage, still runs The Kamehameha Schools and still owns large amounts of land in Hawaii. Millions, more likely billions of dollars was diverted away from education of Hawaiian children by the greed and "entitlement" of its politically-selected trustees. Maybe it's still going on to some extent......we will never know because much of the outcomes were "sealed" to "allow healing" by the very same Judges who appointed the finally-desposed trustees. How many of these greedy people, or their cronies, now run OHA (The Office of Hawaiian Affairs), a group also set up to benefit Hawaiians and, instead, have been raping their resources for years?.....specifically the UHH/OHA travesty that has allowed Mauna Kea to be desecrated. A sad tale of business as usual in paradise.

[Bonnie Irwin · Rating 4 out of 5]

A fascinating look into the way trustees of one of the largest charitable foundations in the country misused their positions, pulled down huge salaries, and became embroiled in a lengthy controversy that rocked the state of Hawai'i. A decade later, the foundation is on good footing, but the distrust of institutions in the state remains.

[Mark Watkins · Rating 4 out of 5]

The story of bad shenanigans at the Bishop Estate trusts, which is the largest private landowner in Hawaii. And gives you a good look into the sleazy underbelly of state government, many people in which were complicit in some bad stuff.

[Terry · Rating 4 out of 5]

The craziest book about corrupt Hawaiian I'll ever read, I'm sure!

[Kellie McLain · Rating 5 out of 5]

As someone who both works in Estate Planning, Probate, and Trust Administration as well as someone who comes from a family who has “owned” an apartment in Honolulu for 50+ years, this book was incredibly eye-opening. As a tourist, you are not exposed to the history of the area or taught how the land that you reside on came to be “owned.” This should be required reading for anyone who loves living in or traveling to Hawaii.

[sheryl Lasota · Rating 5 out of 5]

page turning

Wow, I wish I knew about all this scandal growing up. It’s hard to believe all this happened in my recent lifetime. Living history

[Marc Hess · Rating 5 out of 5]

Money trumps paradise

[Brad Johnson · Rating 5 out of 5]

Great book!

Great book ! Great explanation of the legal process that they had to go through in order to make change

[Spacek Kim · Rating 5 out of 5]

This book gave a clear picture of how those who direct the operation of a charitable trust lose sight of the purpose. A brief history of the end of Hawaii as a kingdom was provided. Hawaiians truly want to preserve their culture. I purchased this book in December of 2016 while visiting the Iolani Palace in Honolulu, Hawaii.

[Sue · Rating 4 out of 5]

This book was fascinating, engrossing, eye-opening and pretty sad. I learned so much about the Princess Bernice Pauahi, the cultural/political climate at the time of annexation, the history of the Bishop Estate and Kamehameha Schools. The book hit close to home, as I grew up in Hawaii, naive to the goings-on of Bishop Estate and politicians. I'd heard about the political machine and incestuous nature of politics in Hawaii, but never really understood exactly what critics were referring to. I'd already moved to the mainland when the Bishop Estate/Kamehameha Schools controversy erupted, so was aware of what had happened, but had no idea the extent of the corruption. As I was reading the book, I found myself gasping out loud at the names of some of the political players involved in corrupt dealings. These were household names for me, people I looked up to, people my parents had supported and even campaigned for local style during election time...we stood at traffic intersections, wearing the t-shirts, holding signs and waving for one of the trustees, back in the early stages of his political career. Reading it now was like reading some mafia tale. Okay, granted I'm already middle-age, but I feel like I just grew a little older, wiser and sadder after finishing this book.

[Kimberlee Rankin · Rating 4 out of 5]

Whenever I travel to Hawaii I like to read books that teach me about this beautiful place that I grew up in from 3rd through 5th grade. It is like coming home to me whenever I visit as it is where my most vivid childhood memories come from. Reading Broken Trust stirred many emotions from anger to sadness by what was being done to the Hawaiian people, as well, hurt from what I experienced being a haole trying to fit into this culture growing up. I have heard the hurt people hurt people. I only hope that there can be proper restoration and reconciliation for these beautiful people and their islands. They are in my heart. As far as the book goes the old adage really is true absolute power corrupts absolutely in every culture. The last part of the books gets slow reciting all the litigation and different things happening and it reads like a report but that is what it is trying to do. Get the facts out. I truly hope that we all can do the right thing as the early slogan of the protesters stated.

[Kate. · Rating 4 out of 5]

You might think villains like Lokelani Lindsey, Dickie Wong, and Bill McCorriston exist only in gothic novels. But you'd be wrong: they also exist in charitable trust management! Broken Trust tells the sordid story of disrepute, scandal, and unthinkable hubris at Hawaii's Bishop Estate--a mega trust set up to provide for the education of Hawaiian children at the Kamehameha Schools. While set in the all-too-real world of probate courts and fiscal reports, Broken Trust is driven by strong characters and hijacked public interest. (Result? It's captivating, and highly readable.) Overall, a great read for someone who is interested in Hawaiian history, land use controls, or the many legal issues surrounding estates and trusts.

[Terry · Rating 3 out of 5]

Princess Pauahi was a good little Hawaiian girl who did well at a missionary school and had the last of the ali'i blood. She married a haole, Charles Bishop, and between his business and her land they made a fortune. Before Mrs. Bishop died she made a will that specified that a school be erected and maintained, the Kamehameha schools. The trust that administered the schools became very corrupt and this book chronicles how Hawaiians dismantled this broken trust. In many ways today, the trust remains a wealthy dividing line (lighting rod?) between whatever a "traditional" Hawaiian is and modern America. There are many heroes and villains in this tale.

[Matthew Griffin · Rating 3 out of 5]

Broken Trust recounts the history of education and power in Hawaii through the lens of estate law. The characters in the books are mainly late twentieth-century political insiders from Hawaii, but the nineteenth century Hawaiian princess who endowed the school and the Hawaiian people, the beneficiaries of the princess's estate, are also strongly developed throughout the book. It is fascinating as much for its social and cultural insights as it is for its historical perspective into a remote part of the United States.

[Debi · Rating 4 out of 5]

A very interesting and disturbing history of the largest charitable trust in the United States, beginning with the end of the Hawaiian monarchy. Helps one to understand why native Hawaiians feel animosity toward the United States and Caucasians, but also how some Hawaiians who find themselves in a place of power purport greed and selfishness, lowering themselves to the worst sort of human behavior.

[John · Rating 3 out of 5]

" The President of The Keystone Center wrote..."This book is a warning to the future and lesson on governance, power, and the management of big institutions." It is a insightful story of Hawaiian culture & history, an expose about shameless abuse of a charitable trust and shameful failure of public institutions (Berkeley School of Law)."
Most amazing to me was that denial of any wrong doing when they were exposed and removed from office.

[Molly · Rating 3 out of 5]

There is a lot of truth in advertising in the title of this book - it is a case study of the Bishop Estate in Hawaii, a charitable trust the size of the Harvard and Yale endowments combined. (That's giant.) One gross betrayal of fiduciary duty after another, it is almost impossible to believe the level of mismanagement and criminal behavior. Worth a read if you are interested in trust law or boards of directors, though it can be hard to keep all of the players in the story straight.

[Mollie Maclean · Rating 4 out of 5]

At a Trust and Estate Conference some years ago, this book was recommended as one which shows how wrong a trust estate can go. It certainly did go wrong in every way. I slept through some of it, but in the end it was full of human failures ending in a kind of forgiveness. Gives me new insight into how two cultures clash and resolve their differences. I'm glad I read this and I have a new outlook on life in Hawaii.

[Cari · Rating 3 out of 5]

Granted this is a class-assigned book, but I think it picks up nicely from where James Michner's Hawaii leaves off. It's been criticized as too slanted against the Trustees, but so far, I'm finding it fascinating and informative. If anything it could help someone understand the political climate of Hawaii in the 70s, 80s and 90s... and even today.

[Patiki · Rating 4 out of 5]

Definitely read this book if you live in Hawaii. It explains recent history and clarifies a lot of the political and social divisions that continue to this day. If you don't have ties to Hawaii, then this book is just another story about greedy people ignoring their fiduciary duties. It's more readable than you might think, given that it's written by a law professor and a judge.

[Purple Wimple · Rating 2 out of 5]

This was assigned reading in Wills&Trusts, and fairly interesting. But also fairly tedious. I didn't get the impression that Hawaii is going to get the Bishop Estate back on track, either. What a shame.