Big Island car dealer sues its ex-CFO
By Kevin Dayton
Advertiser Big Island Bureau
HILO, Hawai'i — One of the largest car dealerships in the state is suing its former chief financial officer, alleging he cut himself a hefty unauthorized bonus and took inside information with him when he resigned last month.
Big Island Toyota Inc. and David S. De Luz Sr. Enterprises Inc. filed suit Friday against Victor Trevino and three other former employees or contractors for the companies, including Stephanie Nakano and her company Inside Out Market Company LLC.
David S. De Luz Sr. Enterprises Inc. is the seventh largest auto dealership in the state, with new-vehicle sales of nearly $75 million in 2004.
Trevino became chief financial officer for the company in 2005 but was suspended on Oct. 23 because the company's corporate tax return had not been filed when it was due in September, the lawsuit alleges.
The suit alleges Trevino hired Nakano to perform computer work for the company, but computer data has since turned up missing or is not comparable with previous years.
Those problems have caused an "extreme hardship" for the company as it tries to comply with an Internal Revenue Service audit for 2003, according to the suit.
The suit contends that "the financial statements of (De Luz Enterprises) and related entities including Big Island Toyota for which (Trevino) had ultimate responsibility were in disarray."
The suit also alleges computer equipment and data were removed or damaged, and alleges Trevino arranged to have an unauthorized bonus check made out to himself for more than $200,000.
Trevino resigned by e-mail on Oct. 23, and Nakano terminated her contract with the company on Oct. 26, according to the suit.
The suit seeks punitive damages along with a restraining order preventing Trevino, Nakano and the other defendants from using or disclosing the information from company records, including customer or supplier information.
Trevino and Nakano were unavailable for comment, and Big Island telephone numbers listed under their names had been disconnected.
Reach Kevin Dayton at kdayton@honoluluadvertiser.com.
Correction: Stephanie Nakano is the founder of Inside Out Market Co. LLC. A previous version of this story misspelled her name.
