Cheated travelers must
wait six months for claims

By debra Barayuga
Star-Bulletin

Customers who paid for trips to Las Vegas through Jimmy's Travel but never got them because the agency closed may have to wait a couple of months longer for restitution.

Circuit Judge Victoria Marks yesterday continued sentencing for James K.S. Lee, owner of Jimmy's Travel, to July 22 to give affected customers time to file claims. It also allows the adult probation office time to notify claimants of the upcoming sentencing and opportunity to be heard.

State law does not allow restitution to be disbursed until after a person is sentenced, said Deputy Prosecutor Chris Young.

Lee faces up to 10 years in prison after pleading guilty last month to two counts of first-degree theft for misapplying customers' funds.

He has $200,000 in a Hawaii National Bank account as collateral for a letter of credit the bank issued to the U.S. Department of Transportation, a requirement for opening a travel agency acting as a charter.

Yesterday, Marks ordered the state to open an interest-bearing account, where the $200,000 will be deposited for distribution to claimants, Young said.

Distribution of refunds to all qualified claimants will be pro-rata, meaning if a person purchased four tickets, he will receive four equal portions, but not the entire amount owed, Young said.

About 1,000 claimants who were issued about 1,700 tickets are expected to file.

Claims that have been filed with the U.S. Bankruptcy Court, Honolulu police, Hawaii National Bank, city prosecutor's office and Regulated Industries Complaints Office will be forwarded to the adult probation office. Those who haven't filed should call the office at 539-4500.

Federal regulations allow claimants to make claims within 60 days of the return date of travel, said Sharon On Leng, complaints and enforcement officer with the Regulated Industries Complaints Office, which revoked Lee's travel agency license. Lee had sold flights through December.

Lee is concerned about whether he will be able to pay people back, said Brian Pang, Lee's attorney. "He's looking forward to being able to take action on his word of apology by working and making some restitution payments."

While awaiting sentencing, Lee will be leaving shortly for Las Vegas to work for a sister who owns a flower shop, Pang said. Lee has promised to pay $1,000 a month toward making restitution.