Jimmy’s refunds
task up in air

Which agency will issue
the $200,000 owed to customers
is unclear

By Crystal Kua
Star-Bulletin

The task of getting refunds to Jimmy's Travel customers who paid for, but never received, Las Vegas trips has turned into a city, state and federal affair.

At stake is $200,000 that travel agency owner James K.S. Lee has agreed to forfeit for restitution as part of the criminal case against him.

"We're trying to work it out at this point," Deputy Prosecutor Chris Young said.

Lee pleaded guilty last month to two counts of first-degree theft for misapplying client funds.

He faces up to 10 years in prison when he is sentenced in April.

Lee opened the travel agency in January and offered $289-$299 Las Vegas packages. The agency shut down six months later, leaving customers without Las Vegas packages they had purchased.

Lee admitted to using clients' money from future charters to offset losses of current charters, which is against the law.

The subject of repaying customers came up during a hearing yesterday, during which Lee received permission from Circuit Judge Victoria Marks to move to Las Vegas to work.

Lee, who is free on $5,000 bond, will be working for his sister, who owns a flower shop in Las Vegas, said his lawyer, Brian Pang. He will be making $1,500 a month and has promised to pay $1,000 a month toward restitution.

Pang said Lee had trouble finding a job in Hawaii because of the publicity of this case. Lee plans to live with his sister rent free.

"They're a very tightknit family," Pang said after court.

Pang said Lee will make the trip to Las Vegas as soon as the court order is signed.

Young pointed out to the judge the irony of the relocation request, saying Lee wants to go to Las Vegas when hundreds of his customers couldn't because of Lee's actions.

Young said afterward that Lee is facing a 10-year prison term and he is worried about the possibility of Lee fleeing prior to sentencing.

He said there will be no way to monitor him if Lee stays in Las Vegas or ensure that he makes the promised $1,000 monthly payments.

Pang said that Lee has met all his previous court-ordered obligations and needs this job to pay restitution.

About 1,700 travel tickets were not honored, and so far, 900 victims have been identified, Young said.

The amount of money lost is calculated at about $900,000.

Pang said there's a disagreement over whether the state Department of Commerce and Consumer Affairs, which oversees the licensing of travel agencies, or Hawaii National Bank, which issued the $200,000 letter of credit to Lee's company, is responsible for administering the refunds.

The disagreement could hold up restitution payments to customers, Pang said.

Young disagreed.

Young said that payments can't be made until at least 60 days from the date of the last charter flight that was arranged by Jimmy's Travel. Lee sold flights through December, he said.

Lee's April sentencing date will give the agencies involved time to come up with a mechanism to pay what they can to customers, Young said.

The U.S. Department of Transportation, which required the letter of credit, is the agency that will decide how the money will be disbursed, Young said.

"We're trying to get the money turned over to the adult probation office as restitution," Young said.

Young said he and the probation office need to gather a definitive list of victims, find a way to notify those victims that they would be entitled to restitution and determine how to get restitution to them.

Sharon Leng of the DCCA's Regulated Industries Complaints Office said her office acted as "facilitators" in the claims process with the bank by providing victims with claim forms and telling them to submit the claims to the bank as a way to preserve their claims to the money.

Leng said Lee has until today to sign a settlement that would lead to the permanent revocation of his travel agency license.