Hawaii Concert Fraud Report

The University of Hawaii has received its fact-finding report on what caused the botched Stevie Wonder concert that was planned at the school, and it appears a bunch of folks screwed up.

The Star-Advertiser obtained a copy of the 57-page report, put together by law firm Cades Schutte. As expected, the report finds there was insufficient vetting of the local promoter and agents claiming to represent Wonder.

However, the report is so heavily redacted that even the name of the artist is removed. It can be assumed, though, that the report finds fault with everyone from the university chancellor on down.

The Oahu university planned a benefit concert for the athletic department at the campus’ Stan Sheriff Center Aug. 18. The university paid a $200,000 deposit to an unauthorized agency in Florida that claimed it could bring Wonder to Hawaii for cheaper than through his longtime agency, CAA. The university hired local promoter Bob Peyton, who gave the agency $50,000 of his own money.

The university was soon informed that Wonder did not know of the gig. Organizers canceled (despite Peyton’s claim he urged them not to), and the deposit money was not refunded, as per the contract.

The school’s athletic director, Jim Donovan, and venue GM Rich Sheriff were placed on paid leave. Donovan was eventually moved to a desk job, and Sheriff was reinstated.

The report is lined with the (assumed) names of officials who didn’t have the full story.

For instance: “On June 19 President Greenwood sent (Manoa Chancellor Virginia Hinshaw) a message inquiring about the concert. This appears to be the first time President Greenwood or (Hinshaw) knew about the concert.”

On one level, it’s business as usual. Although the parties were working with the little-known Epic Talent out of Florida, a binder was secured, and money was placed in an escrow account. A payment schedule was formalized, and the final cost of the concert would be $450,000.

However, there appeared to be a hive-mind mentality, with nobody making final decisions. For instance, someone was asked to secure a $2 million policy of event and/or cancellation insurance with the university as additional insured before the university signed off on the concert. Yet, although that policy never got processed, according to the report, the wheels stayed in motion.

Meanwhile, a student worker in the school’s athletics business office was never provided the original $200,000 invoice for the deposit, so a pro forma invoice was created.

One of the report’s telling lines: “Prior to making the ($200,000 wire) transfer … it does not appear that an effort was made by anyone at UH to investigate or evaluate (Epic Talent) or to determine whether (Epic Talent) was the agent for (Wonder).”

Where the money ended up is anyone’s guess. But, at this point, it doesn’t appear headed back to Oahu.

State Rep. Mark Takai said that mishandling was too kind a word and that the university is spinning the situation. State Rep. James Tokioka said the incident would have a “long-lasting effect” on the university as a whole.