Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, June 25, 1996

Las Vegas couple fined in
alleged airline fraud

A Las Vegas couple who promised cheap seats to Hawaii on a low-cost airline that never took off now faces $725,000 in penalties for alleged securities fraud, the Securities and Exchange Commission said.

In 1992 and 1993, Family Airlines Inc. said it would soon be flying a 500-seat Boeing 747 from the West Coast to Hawaii as part of a network linking New York, Los Angeles, Las Vegas and Miami.

A federal judge in California on Monday ordered founder Myron Barry Michaels and his wife, Holly, to return $363,306 to defrauded investors and to each pay civil penalties of $181,000.

The court found that the Michaels misused funds and lied or omitted material facts to investors, the SEC said.

Tax troubles may close bar
at Pau Hana Inn

KAUNAKAKAI, Molokai - The bar at Molokai's legendary Pau Hana Inn is expected to close on Sunday.

Joyce Farr, a spokeswoman for Molokai Beach Limited, which owns the Pau Hana Inn and Hotel Molokai, called the situation "tragic."

Molokai Beach has not been able to pay its state taxes and is in danger of losing the liquor licenses for the two hotels at the end of the month, Farr said.

She said she fears that, without the landmark bar, the Pau Hana restaurant and hotel could close as well.

For more local, national and international business news,
see the Hawaii Inc. section in today's Honolulu Star-Bulletin.

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