An ongoing $10 million lawsuit that involves a tourist who was paralyzed during a jungle hike has alleged fraud at the core of a tour company.
Tourist couple Koichi and Mina Ogawa have been suing U.S. Explore & Study since early 2011, but new arguments in the case state company President Ken Haga allegedly lied about investors and shareholders to shield himself from liability.
U.S. Explore & Study still is operating out of a Tumon office.
According to federal court documents, Haga allegedly admitted during a deposition that he filed fraudulent documents with the government of Guam to start the company -- making it appear as if shareholders had paid $250,000.
Haga allegedly admitted that he actually started the company with money he received from his father, court documents state. Haga also allegedly admitted that he used corporate funds to buy shares for his wife and son, court documents state.
"The corporate records and testimony of Haga revealed that Haga is the only shareholder who has received any monetary benefit from the corporation; that he has always been the president; and that there has never been an election or even a formal shareholders meeting," wrote attorney William Fitzgerald, who represents the Ogawa couple.
Haga's attorney, Randall Todd Thompson, couldn't be reached for comment. Haga said he wouldn't comment on the lawsuit until it was over.
The deposition isn't available as part of the public record in federal court, but Haga's alleged statements were repeated in additional court documents. The alleged statements have prompted the Ogawa couple to revise their original lawsuit.
The lawsuit now alleges that Haga and his business partner, Eric Chen, used the corporate status of U.S. Explore & Study to "improperly shield (them) from personal liability."
"Because of the acts of Haga and Chen, U.S. Explore & Study doesn't have the financial capability that it has held itself out to have and does not have the capital to compensate plaintiffs for its wrongful acts," the amended lawsuit states.
The original lawsuit asks for $10 million to compensate Koichi Ogawa for his paralysis. Koichi Ogawa allegedly was injured when he dove off a waterfall during a hike in March 2009, according to court documents.
The hike was led by Haga who allegedly encouraged Ogawa and the other hikers to dive into the pool at the bottom of the waterfall.