Tag Archives: University of Hawaii

Factfinders Report contradicts Sheriff testimony to Senate Committee

Richard Sheriff, manager of the Stan Sheriff Center at UH and the university’s “point person” in the Stevie Wonder benefit concert planning, said Tuesday that his bosses had vetted local promoter Bob Peyton and his company, Bob Peyton Entertainment, and that Sheriff simply relied on their judgements in recommending the deal go forward.

But this account differs in substantial respects from what Sheriff previously told a factfinding team hired by the university, and is also contradicted by statements made by then-athletic director Jim Donovan and associate director Carl Clapp.

“My superiors told me they had checked out Mr. Peyton,” Sheriff said in public testimony before the Senate’s Special Committee on Accountability. “I had seen his resume so I knew he had done shows in Hawaii for 30 years.”

Sheriff continued: “All I was told was that they had checked out Peyton and that he had good reviews.”

Members of the committee accepted Sheriff’s statement and did not pursue the question further.

But in an earlier statement to the factfinders, Sheriff gave a different description of his role in checking Peyton’s background.

I was comfortable with (Peyton)’s reputation based on seeing their name in connection with various events and from talking to people within the local entertainment industry. I talked to people who worked for Rhema, a local audio company, and Theatrics, a lighting company that had just recently done work for a show at the Center. Their feedback about (Peyton) was positive. Clapp also mentioned to me that he had checked into Peyton and gotten good reviews. I do not know what specific steps Clapp took to investigate.

According to the factfinders report prepared by attorneys Dennis Chong Kee and Calvert G. Chipchase, neither Donovan nor Clapp did their own investigation of Peyton or his company, and did not know about the promoter’s financial troubles.

“Donovan does not know whether anyone other than Sheriff investigated (Peyton),” the report stated.

“Through Sheriff, Donovan was aware that (Peyton) had put on a (Stevie Wonder) concert 18 years ago. Sheriff also told Donovan that (Peyton) is ‘a good guy,’ which Sheriff based on his conversations with (redacted) in Hawaii.”

The names in parentheses are redacted in the public version of the factfinders report, but I have filled in the blanks with the obvious names.

Donovan also told factfinders he only knew what Sheriff told him about Peyton.

Donovan’s statement is included among the attachments to the factfinders report made public by the Senate committee:

“I did not do anything to investigate (Peyton) or (BPE). Sheriff told me that he did. Sheriff said that (Peyton) did the previous (Stevie Wonder) concert in Hawaii, and that (Peyton) could be a contract with (Stevie Wonder)’s management. Sheriff also talked to lighting crews and others in the industry who have worked with (Peyton) & Sheriff told me (Peyton) has a good reputation and pays his bills.

I did not task anyone with investigating (Peyton), nor do I know if anyone was tasked with such an investigation. To my knowledge extending back to 1985, we have never investigated an outside user of our facilities. I only know that Sheriff inquired about (Peyton)’s business reputation among sound, stage and lighting type companies.

After receiving Sheriff’s assessment that Peyton was “a good guy,” Donovan told Sheriff to “handle it.”

“I believed that the event was within Sheriff’s scope of responsibilities,” Donovan said in his written statement.

Clapp, meanwhile, told factfinders he didn’t do anything to investigate Peyton, and did not know whether anyone was asked to do so.

Clapp also told the factfinders that Sheriff doesn’t routinely report to him within the athletic department’s organizational structure.

I believe he reports to [Teri] Chang [the facilities person in athletics]. I believe Chang reports to the Athletics Director, but I assist the Athletics Director, so at times I work closely with Chang.

Clapp told the factfinders he didn’t learn about the concert until receiving an email inviting him to a May 18 meeting about concert seating, at which point planning was quite far along. Clapp was out of town and did not attend. However, about two weeks prior to that date, Clapp signed off on a form requesting the assistance of the university’s office of general counsel in drafting the contract with the promoter. However, the documents show discussions between Sheriff and Peyton started in March, so it is likely Sheriff’s background checking took place much earlier.

Donovan’s defended the rather cursory checking by pointing out the athletics department had never investigated an outside group that wanted to rent their facilities, implying there was nothing different about Peyton’s proposed Stevie Wonder concert.

But there was a big difference.

Although the deal was officially described as a “Facilities Use Agreement,” and may have started out as a simple rental proposal, it was soon apparent that Peyton could not finance the deal without the university’s facilities and access to the box office cash. So it really ended up as a nonbid deal in which UH would provide financing and facilities Payton needed, and the promoter would get a fee in the form of a percentage of the concert’s profits. If it had been processed through the UH fiscal system as a purchase of this kind, it would likely have triggered other UH procurement reviews that would have scrutinized Peyton’s ability to deliver the goods before any payments were made to outside parties.

In any case, it’s too bad the Senate committee gave Sheriff a pass on this issue.

[My apologies for several typos in the first version posted this morning. And thanks to those who flagged them and let me know! Distributed editing at work.]

UH “Wonder Blunder” hearings available for online viewing

If you’ve got time and some patience, recordings of the two Senate information briefings on the UH Stevie Wonder concert are available for online viewing on Olelo’s on demand service, OleloNet.

Here’s the information, courtesy of Olelo.

The Senate’s Special Committee on Accountability (SCA02) Briefing videos are available on the Senate Archive page:

http://olelo.granicus.com/ViewPublisher.php?view_id=13

The links to the videos are:

9/24/12
http://olelo.granicus.com/MediaPlayer.php?view_id=13&clip_id=30627

10/2/12
http://olelo.granicus.com/MediaPlayer.php?view_id=13&clip_id=30802

Regards,
Helpdesk

Follow the money

So what happened to the University of Hawaii’s money from the failed Stevie Wonder concert?

An initial $50,000 payment was wired to a Florida account on May 29, 2012, part of a loan obtained by promoter Bob Peyton that was to be paid from advance ticket sales. The university’s payment of $200,000 was sent on June 26.

Meanwhile, ticket sales were “not that good.”

• Walter Watanabe, ticket manager.

(redacted) showed me an email from me to various people sent on June 23, 2012. I sent this email as a status update of the ticket sales. It was not as good as I had hoped. The goal was to have a sell-out. Selling 600 tickets in two hours does not indicate that a sell-out will occur.

• From ticket sales report, July 9, 2012. 10:30 a.m.
There were approximately 11,000 tickets available in the planned concert configuration.

Tickets sold: 5,893

Total ticket revenue: $629,888.00

This was well short of the $1.1 million envisioned by the promoter.

• According to the timeline of events prepared by the university:

July 9: President Greenwood receives email from Robert Light, managing partner of Creative Artists Agency, informing her that he is Stevie Wonder’s agent and that he and Mr. Wonder have no knowledge of the concert

• Excerpt from mail message dated 7/9/2012 3:56:46 P.M. Hawaiian Standard Time.

Dear Ms. Greenwood,

My name is (redacted), I am one of the managing Partners at (redacted).

I am (redacted)’s agent (and have been for the last 18 years). It has come to our attention, that a (redacted) is promoting a benefit concert for (redacted) at your Honolulu campus, Sheriff Arena on August 18th, 2012.

Please know, (redacted), his management and myself have no knowledge of this event.

It was never brought us as an offer, and at this time it is not a confirmed engagement.

I am not sure who (redacted) was speaking with, but I can assure you it was not one of (redacted)’s representatives.

• Excerpts from email dated July 9, 2012 4:32:22 PM HST, Bob Peyton to Robert Light of Creative Artists Agency.

I am sure this is an oversight and we can work it out amicably.

…we have known each other for dozens of years and I too have a reputation to uphold.

In the meantime…please lets reason this out and stop the frantic alarm….

• Email message dated 7/9/2012 4:44:22 P.M. Hawaiian Standard Time, apparently from Robert Light to Bob Peyton.

Respectfully, I have no idea who (redacted) is, or where they are based. I am not sure why you would have sent anyone $250,000 without checking with an official representative of (redacted).

This is not an issue of working something out amicably, I do not even know if he is available on the 18th. He may have personal plans.

When you suggest this is an oversight, I am not sure what that even means. And on whose part?

I would ask that you send us all the relevant paperwork, and I would also suggest that you demand the deposit back.

When I have all the pertinent information, I will forward to (redacted)’s management, and get you some quick feedback.

To your letter, I am not being frantic, nor do I owe this situation “reason.” We were not even aware of the show until yesterday.

I am actually more surprised that you did not do your research and due diligence about who (redacted) is, and if this was really a confirmed date.

BUt at this time, this is NOT a confirmed show. It should not be on sale, and should not be advertised.

• July 10, 2012. 6:15 a.m. Notes by Jim Donovan on telephone call he received.

6:15am

-: managing partner
said he talked with (redacted) who handles all of (redacted) business affairs and they know nothing about this concert and it’s not approved.

(redacted) has been (redacted)’s agent for 18 years and says he handles all of (redacted). concerts. He does not think this concert will go on He will be talking to (redacted’s). management and probably (redacted) himself & he will get back to me later today (definitely does not sound optimistic and he says the university needs to ‘quickly follow-up on the $200,000 because he doesn’t have it, (redacted)’s management doesn’t have it and he doesn’t know wbere it’s at.

• From statement by Howard Todo, UH Vice-President for Budget & Finance/Chief Financial Officer.

President Greenwood asked if 1 could see if we could recover the $200,000. I called Bank of America in Orlando. I spoke to (redacted) , VP of Bank of America, said she asked the account holder to agree to the return of the money and the account holder said, no. I asked Paul Kobayashi to call Bank ofHawaii. Bank of Hawaii also requested a return of the money and received the same response. (redacted) said that she could not tell me anything about the account or the account holder. A few minutes after speaking with (redacted), a VP of Global Financial Crimes Investigations and Compliance from Bank of America called me and said that they cannot give me information about the account, but that we should ask the FBI to move quickly to freeze the account.

• From statement by Paul Kobayashi, UH Director of Financial Management and Controller.

I learned that the (redacted) benefit concert would not go forward from reading the newspaper. I discussed it with Todo. He asked me to gather information pertaining to the transaction. He also asked me to contact Bank of Hawaii to attempt to recover the $200,000.

Bank of Hawaii did reach Bank of America, who confirmed that there were no funds left in the account to which the transfer was made. Bank of America contacted the owner of that account. The owner declined to return the funds.

• Excerpt from statement by Tom Ueno, CPA, who loaned Peyton the $50,000 that was wired to a Florida bank account as a “binder” fee.

1 found out that the concert would not go forward when I read about it in the pear.

I have followed up with my friend about the loan.

1 have not had direct contact with (redacted) or (redacted).

The FBI has not been in touch with me.

UH concert appeared (briefly) on Stevie Wonder concert schedule

And the plot thickens.

Among the documents relating to the failed Stevie Wonder concert gathered by the Senate’s Special Committee on Accountability so far is this one-page list of 2012 appearances by the performer.

Included on the list is the August 18 concert at Stan Sheriff Center.

Click on the list so see a larger version.

Stevie Wonder

The list, a screenshot saved prior to the concert’s official cancellation, appeared on a UK website devoted to Stevie Wonder information. It appears to be a fan site, and does not identify who controls the site. It is not the official Stevie Wonder website, which can be found at www.steviewonder.net.

The date “July 9, 2012”, the day before then-UH athletic director Jim Donovan held a press conference to announce the concert’s cancellation, appears at the bottom of the page along with the original URL. It isn’t clear if that was the date the image was captured, or whether it reflects when it was copied and distributed.

So what does this mean? At this point, it isn’t at all clear. It does appear that the Hawaii concert was in play, or thought to be in play, despite official denials from Stevie Wonder’s exclusive agent that they were not involved and had not approved any Hawaii appearance.

It is possible the information about the concert date originated with Bob Peyton, the promoter who was trying to put the deal together. Peyton, in his statement to UH factfinders, said he was initially working with a booking agent in England, although he later turned to another agent based in Spain. So Peyton’s English contact could have innocently passed the date and concert information on to the fan website.

Possible.

Note, though, that the list did not include an August 17 concert on Maui, which was part of a two-concert deal that Peyton had been pursuing. So could the Honolulu concert date have been “leaked” to the website by one of the scammers in order to give reluctant university officials additional confidence that the deal was for real? They were, according to the statements of those involved, pushing for UH to make the $200,000 payment. Was the concert listing, in short, part of the scam and not from Peyton at all? Also possible.

Round and round we go.

If it wasn’t a scam from the beginning, when did it become one? And if UH wasn’t the victim of a scam, where’s the money?

The Senate Committee will have its hands full trying to sort all this out when it reconvenes on Tuesday afternoon.