Police investigate theft,
forgery case at Lanai Bankoh

Police have 2 possible suspects after
a report was made this week

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Star-Bulletin staff

Maui police are investigating a possible theft and forgery case at the Bank of Hawaii on Lanai.

Maui police Lt. Robert Hill, Lanai district commander, said the incident happened a year ago. A complaint was reported early this week, he said, and the investigation is in the "early stages."

No arrests have been made, but police are looking at two possible suspects, Hill said.

The bank is cooperating in the investigation.

"We're currently in the process of analyzing accounts and constructing a detailed 'paper trail,'" according to a written statement by Stafford Kiguchi, Bank of Hawaii senior vice president and corporate communications manager.

"The bank will replace funds that have been improperly withdrawn from any customer account," Kiguchi said.

Hill would not confirm whether the suspects were employees nor whether the incident involved the Lanai branch of Bank of Hawaii, even though the bank had issued a statement saying it was supporting the Maui police in its investigation.

"Because Lanai is a small place, we don't want to give out too much information," Hill said.

Kiguchi said the incident has been reported to local and federal law enforcement agencies.

"Despite the numerous controls we have in place to prevent and detect fraudulent activity, instances do occur on rare occasions," Kiguchi said.

"But in no instance would a customer ever be financially harmed. The bank will always ensure that the customer is fully reimbursed."

Kiguchi said "it was a bank policy requiring employees to take vacation -- and be away from their jobs -- that allowed the account discrepancy to come to light in this case."

Kiguchi would not disclose the amount of money involved, but said such incidences are uncommon. "Our historic losses are in line with what's anticipated for banks of our size," he said.

Bank of Hawaii, the largest subsidiary of Pacific Century Financial Corp., is one of the two largest banks in Hawaii.

Hill said there is a possibility the case could expand. He expected to have more information in a week.