Judge defers ruling
on alleged defrauding
of Kalihi church

The defendants deny the civil
accusations by former members

A family who runs a Kalihi church has stolen untold sums from the church's coffers, falsifying its financial records and leaving thousands of dollars of member donations unaccounted for, an attorney representing dissident members told a state judge yesterday.

But Way of Salvation Church's lawyer denied the charges, accusing the dissident excommunicated members of spreading baseless allegations and saying a state deputy attorney general's church investigation, which corroborated some of the dissidents' accusations, was mean-spirited, biased and shameful.

After hearing from both sides, Circuit Judge Bert Ayabe said he would rule later on a motion by Way of Salvation Church to dismiss a lawsuit brought by the dissidents against the organization's leaders, including the Rev. Mariano Caneso, its 94-year-old founder.

Ayabe also deferred ruling on a request by the dissidents seeking appointment of a receiver to oversee Way of Salvation's finances while the lawsuit is heard.

At yesterday's packed court hearing, attorney Scot Brower accused the Caneso family of stealing money donated by his clients and other members and falsifying documents as part of the fraud. The members believed their contributions would benefit Way of Salvation, but the money instead went to "line the pockets of the Caneso family," Brower said.

He mentioned a $40,000 building fund in which he said the money was unaccounted for and claimed that the church lacked accountability on how money was spent. Brower noted that the pastor's daughter does the bookkeeping.

Ronald Amemiya, the church's attorney, denied that any money was misspent. "There's no credible evidence to back up those declarations," he told the judge.

Amemiya said the modest compensation paid to the Canesos was for work done on behalf of the church, such as the $44,000 salary the head pastor received on average each of the past several years.

Amemiya argued that the lawsuit should be dismissed because case law clearly shows that members excommunicated from a church have no standing to sue the church. The plaintiffs in this case have been excommunicated, Amemiya said.

And the only time the state can get involved in church disputes is when civil rights or a criminal offense is alleged, he added.

After investigating Way of Salvation on the basis of its standing as a nonprofit corporation, the Attorney General's Office filed a "friend of the court" brief in the case, accusing the Caneso family of abusing its authority and supporting the plaintiffs' call for a receiver.

But Amemiya criticized the actions of Hugh Jones, the deputy attorney general who did the investigation, describing Jones as someone "drunk with power who has lost all perspective of what is fair."

Jones in court papers has said his findings were based on information provided by the church.

Among those who attended yesterday's standing-room-only hearing was the Rev. Kaua Kwan of Lamb of God Church in Honolulu.

Kwan said he was there to support the Canesos and is concerned that the lawsuit, if allowed to proceed, would breach the fundamental principle of separation of church and state.

"This is an attack on the integrity of the church," Kwan said.