Man who vanished
is charged in theft

CORRECTION Sunday, June 26, 2005 » Chris Van Marter is the deputy prosecutor in the Kenneth Peters Jr. case. A story on page A3 of yesterday's paper used an incorrect first name. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

A man who abandoned his car near Makapuu and ended up in Thailand with a large sum of cash in March has been charged with stealing about $150,000 from Flight School Hawaii.

According to the criminal complaint filed yesterday in state court, 31-year-old Kenneth J. Peters Jr. of Salt Lake forged checks, stole equipment and fraudulently used credit cards in the name of Flight School Hawaii from September 2002 to December 2003, where he was employed to keep the books.

The complaint alleges that Peters funneled the stolen money into an entity named KenQuest & Co. He is charged with 11 counts of second-degree forgery and one count each of first-degree theft, money laundering and fraudulent use of a credit card.

Deputy prosecutor Peter Van Marter said Peters cooperated with authorities and turned himself in to police Thursday. After being booked for the charges, Peters was released until an arraignment date is set at District Court.

"Bail will be set at the arraignment," Van Marter said.

While the case was being investigated by Honolulu police, Peters disappeared and was listed as a missing person after a passing motorist spotted his 2005 Mercedes-Benz about 70 feet below in the brush along the cliffs of Makapuu on March 22.

Peters' cell phone was still in the car, keys in the ignition, and a police bloodhound found his shoes in the hills above Kalanianaole Highway across from Makapuu Lookout.

Police said Peters had last been seen at about 7:30 p.m. leaving work in Halawa the day before.

Later that week, investigators tracked down Peters in Bangkok and convinced him to return to Hawaii. Upon his arrival in Honolulu that week, U.S. Customs officials stopped him because he was carrying a large amount of cash, about $15,000 or more.

Although police said Peters committed no crime by being a missing person, sources said he was believed to have fled the country because of the investigation.

When asked if Peters was considered a flight risk because of his history, Van Marter replied, "I really don't have any comment because there's been no police report to this office regarding that incident."

According to the Hawaii Criminal Justice Data Center, Peters has a previous conviction for second-degree theft stemming from a 1993 case involving Liberty House. In 1994 he was sentenced to six months' confinement, 200 hours of community service and five years' probation.

Flight School Hawaii officials had no comment about the case, but did confirm that Peters was an employee and has a private pilot's license. Peters is from the Big Island and has family from Laupahoehoe.