Bad Company: The final days of Baron Dorcy, Maui Millionaire



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(page 4 of 4)

The Nosey Doctor

On Jan. 24, 2010, Dorcy and his new caregiver, Kehaulani, flew to California. There he met The Man and gave him a tour of the Hawaiian Chieftain, the tall ship Dorcy had built and since sold. Dorcy also showed The Man the 1932 Auburn, one of the prized classic cars he was giving away as a token of their friendship.

While there, Dorcy developed trouble breathing, and ended up in the office of his personal physician, Dr. Bradford Rabin. Kanuha and Leatrice had since joined Dorcy and Kehaulani in California, and they all accompanied Dorcy to Rabin’s office, after failing to secure a prescription from Rabin over the phone. Rabin was alarmed by Dorcy’s condition. Not only was he having difficulty breathing, he was also struggling to finish sentences and express coherent thoughts. But, during the hour that Rabin talked to him, Dorcy managed to reveal that a secret person had taken him under his wing, given him a gold watch and was managing his finances. When Rabin pressed him on this person’s identity, Dorcy told him about Henry Rice. Rabin summoned Kanuha, to try and shed light on the situation. “Hans explained to me that he knew this Mr. Rice and was absolutely confident that he had Larry’s best interest at heart and that he would be taking good care of him,” said Rabin, who was hardly reassured and suspected elder abuse.

Rabin sent Dorcy to the hospital, where he was admitted overnight and suspected to have overdosed on painkillers. Before Dorcy was released, Rabin got a call from Kosaka, the new lawyer, informing him that, per Dorcy’s instructions, he was dismissed as Dorcy’s doctor.

In The Ambulance

Six weeks later, Dorcy was back in the hospital, this time in Hawaii, and this time for good. For three days in March, Elsa had been arguing with Dorcy’s new team about Dorcy’s health. Dorcy appeared to her to be incoherent, his eyes were unfocused and he was patting his chest and moaning a lot. “I told Kehaulani and Hansi that Mr. Dorcy is really sick and that I had never seen him this sick before,” she testified. “Kehaulani said not to worry, he was fine. I told her: ‘He is not fine. Are you blind?’” Petro Hoy, who was now coming by regularly under a new code name, “C.V. Hansen,” wanted to take Dorcy out to do business, but Elsa refused to let him go. On the morning of March 26,  after she found Dorcy on his bed in the fetal position, struggling to breathe, she insisted he get medical attention. She testified that Kanuha, Kehaulani and the Hoys shut themselves in Dorcy’s room for several hours, before finally agreeing to call an ambulance.

A young Baron Dorcy with Linda Leilani Dorcy Sanford, a cousin, circa 1950.

Kanuha forbade Elsa from telling anyone Dorcy was hospitalized, she testified, but she could not keep that secret. She called Pettigrew and Dorcy’s cousin, Linda Leilani Dorcy Sanford, who lives in Honolulu. Sanford, who had been on the phone with Dorcy in recent weeks, arrived and confronted Kanuha and Kosaka, demanding answers about Henry Rice. At the mention of that name, she testified, “Mr. Kosaka jumped out of his chair, went ballistic and shouted, ‘There is no Henry Rice, there is no Henry Rice.’”

Dorcy’s Honolulu physician, Dr. Stephen Arnold, testified that he, too, had an unsettling interaction with Kosaka. While Dorcy lay in bed under sedation, with a feeding tube up his nose and a respirator down his throat, Kosaka called asking to have the sedation withdrawn so Dorcy could sign documents. The doctor refused, and recommended in his medical note that Adult Protective Services be notified.

The legal wheels began to turn. Pettigrew went to court and wrested medical guardianship of Dorcy away from Kanuha. Hans went to court, told the judge that Dorcy had raised him, and won an unusual adult adoption, which the judge later rescinded, stating “there was a lot of misrepresentation as to how that adoption was granted in the first place.” The state attorney general got involved to protect the charitable beneficiaries named in Dorcy’s first will. Meanwhile, a federal grand jury indicted Leatrice and Petro Hoy, along with three others, on fraud and other charges in the Ko Hawaii Pae Aina case. (Leatrice has since pleaded guilty; Petro is still under indictment.)

Three days after the indictments, on June 2, 2011, Dorcy died.

That same day, Kosaka revealed the will naming Kanuha as sole beneficiary. This brought Jeff Peterson, a beneficiary under the first will and Dorcy’s longtime trust adviser from Minneapolis, where the 1917 Hill trust was based, out of retirement to challenge the new will. During discovery, Kosaka took the Fifth Amendment during one deposition, then had a change of heart and fielded questions during a second. Petro Hoy struggled with his memory during his deposition, then grew indignant at the questioning and walked out of the proceedings. A fire broke out in Kanuha’s office, destroying records he had been ordered to turn over.

After the sealed, out-of-court settlement was reached in February 2012, Kanuha’s attorney, James Krueger, told the Honolulu Star-Advertiser that his client felt “vindicated” by the settlement. HONOLULU Magazine was unable to reach either Kanuha or Kosaka for comment. Some of the beneficiaries of the first will, however, who were neither privy to the terms of the settlement nor bound to refrain from talking about it, have told HONOLULU they are certain Kanuha did not inherit any money at all from Dorcy.

Meanwhile, the criminal investigation continues. Stay tuned.

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