Factfinders’ report of Stevie Wonder Concert
University of Hawaii President M.R.C. Greenwood inquired about the planned Stevie Wonder concert at least three weeks before the cancellation but apparently did nothing to follow up on the proposed venture, according to an external report.
“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,” according to a heavily redacted, 57-page report by the law firm Cades Schutte, which was commissioned by UH and obtained by the Star-Advertiser under the state’s open-records law.
The name of Hinshaw, who retired June 30, is redacted in the report, as are the names of Wonder, local promoter Bob Peyton and supposed go-betweens for Wonder. But the Star-Advertiser is including the names in parentheses when the report’s context makes it clear who the subject is.
The ill-fated concert was canceled July 10, a day after Beverly Hills representatives of Wonder told UH officials that the singer had no knowledge of the announced concert to benefit UH athletics.
The Cades Schutte report, which details a series of missteps, says UH officials at various levels did not investigate or evaluate details that should have been reviewed before authorizing a $200,000 wire transfer of UH money as a deposit to secure the concert. That money, along with what was said to be another $50,000 from Peyton, was wired to a Florida-based company, Epic Talent, which purported to represent or be in contact with representatives for Wonder. The money has since gone missing, and Greenwood has said it appears UH has been defrauded.
The report outlines missed opportunities by UH officials at several levels to question the details of the wire transfer, including the identity of the recipient of the money, and cites a failure of officials to realize that concert-cancellation insurance was not obtained before sending the money.
In addition, a student worker apparently was assigned a role in preparing documentation for the $200,000 wire transfer. “A proforma invoice for $200,000 in (blank)’s name was prepared by a student worker in the athletics business office,” the report notes.
After receiving Greenwood’s June 19 inquiry, Hinshaw “called (athletic director Jim) Donovan for a briefing. Donovan told her that (Stan Sheriff arena manager Rich) Sheriff was connected with a person who had contact with (Wonder),” the report says. “Donovan further stated that (Wonder) had authorized the event and that athletics was working with the Office of General Counsel,” the report says.
Following Donovan’s report, “(Hinshaw) sent the following email to President Greenwood: Jim has been working on this for a while — Ryan Akamine (of the general counsel’s office) has been involved in every step. They have gotten appropriate permissions for the performance. Is there a specific question regarding the concert or tickets?” the report stated.
The report concludes, “it does not appear that President Greenwood asked (Hinshaw) any further questions regarding the concert or the ticket sales.”
The report also says, “Akamine disagrees that he was involved in every step.”
“Little appears to have been done to investigate or evaluate (blank)’s ability to secure (Wonder) or (blank)’s desirability as a contracting partner,” the report states, noting that Sheriff made “limited inquiries” about the partner and that Donovan relied on Sheriff.
At a press conference before the release of the report Wednesday night, Greenwood said, “I try very hard not to surprise anyone, and I don’t like to be surprised myself. So, in the future I would like to know if there is a big (event).”
The Cades Schutte report, for which UH has refused to say how much it will pay, outlines several points where red flags should have prompted reviews or further questions.
For example, “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 (blank) or to determine whether (blank) was the agent for (Wonder).”
In addition, the report states:
>> “No one has accepted responsibility for failing to ensure that the (cancellation) insurance was in place before tickets were sold and money was transferred.”
>> “No one at UH confirmed that the (cancellation) insurance was in place before (ticket) presales began.”
>> “No one at UH confirmed that the insurance was in place before UH made the $200,000 wire transfer to (blank).”
>> No one other than Sheriff was familiar with the contracted promoter, Peyton, his background or his finances. “It does not appear that prior to executing the agreement, anyone at UH was aware of the judgment in favor of (blank) against (Peyton) for $24,196.80 or foreclosure action initiated by (blank).”
>> “Neither (the promoter) nor anyone at UH appears to have verified that the account was, in fact, an escrow account, provided or reviewed escrow instructions or received written confirmation of the transfer of the funds from the (blank) account to another account.”
>> Investigators said they “have been unable to determine whether the Manoa Chancellor formally delegated to (Donovan) the authority to enter into contracts to rent the (Stan Sheriff Center) to outside groups.”
After announcing the concert’s cancellation July 10, UH placed Donovan and Sheriff on paid leave the next day pending the results of the Cades Schutte investigation.
Last week UH announced it was reinstating Sheriff and reassigning Donovan to a new, as-yet-untitled position in the Manoa chancellor’s office with an annual salary of $211,200 a year for three years. On Wednesday the UH Board of Regents apologized to the public for how UH officials mishandled the situation, but stuck by the decision to reassign Donovan.
