The lawyers accused of complicity in the bankruptcy fraud of imprisoned businessman Sukamto Sia are asking that any blame fall on one of Sia's younger brothers, a former fugitive who is believed to live in Singapore. Lawyers cast complicity
blame on Sia’s brotherThe attorneys are accused
of helping the bankrupt
Sia hide his assets
By Tim Ruel
truel@starbulletin.comHonolulu attorney Renton Nip and the law firm formerly known as Verner Liipfert Bernhard McPherson & Hand say they have done nothing wrong, but if they lose in court, they want the blame and costs to fall on Sumitro Sukamto.
Sumitro was once charged in Sia's federal criminal case in U.S. District Court in Honolulu, though Sumitro never appeared in court.
"He was a fugitive from day one, and he never made an appearance," said Craig Nakamura, one of the federal attorneys who prosecuted Sia.
The federal counts against Sumitro were dropped when Sia reached an agreement with prosecutors in 2001 to plead guilty to bankruptcy fraud and wire fraud, for which Sia received a reduced sentence.
Sia, 44, is in prison in Lompoc, Calif., and is scheduled for release in September 2004.
Last year, the bankruptcy trustee appointed to investigate Sia's assets, Guido Giacometti, sued Nip, Verner Liipfert, Sia and Sumitro in a nine-count lawsuit, alleging they had conspired to hide Sia's assets. The suit alleges that Nip and Verner Liipfert received thousand-dollar payments from Sia without court approval. The lawsuit is pending in U.S. Bankruptcy Court.
Sia, an Indonesian who was once the chairman of the now-defunct Bank of Honolulu, filed bankruptcy in Honolulu in November 1998, claiming he had $9.3 million in assets and nearly $300 million in debts.
Giacometti has estimated Sia's actual assets at $79.6 million.
Nip and Verner Liipfert represented Sia during his bankruptcy case, and both have denied the allegations that they helped Sia hide assets. Sia has also denied the new allegations. Sumitro has not responded.
In pleadings filed separately in U.S. Bankruptcy Court last week, Nip and Verner Liipfert said all blame should fall on Sumitro. Verner Liipfert is seeking a court order to require Sumitro to protect the law firm from damages.
Warren Price III, attorney for Verner Liipfert, said in an interview that Nip and Verner Liipfert are relying solely on the information in the lawsuit against Sumitro, because they have no way of contacting Sumitro. "We don't know where this person is," Price said.
Nip is named in seven of the nine counts in Giacometti's lawsuit. Verner Liipfert is named in five counts. Sumitro is named in four counts.
The Verner Liipfert firm, known in Hawaii for its lobbying on behalf of the former Bishop Estate trustees, has been acquired and is now known as Piper Rudnick. Nip, a former state land use commissioner, was once of counsel to Verner Liipfert. Nip is now with the law firm Waihee & Nip, along with former Gov. John Waihee, who also used to be with Verner Liipfert.