Aloha Airlines Probe Targets Four Banks

Law360, New York (February 24, 2006, 12:00 AM EST) -- Four banks have been subpoenaed in connection with a federal investigation into whether Honolulu's Aloha Airlines illegally used employee pension funds to pay off bank loans prior to its Chapter 11 bankruptcy filing in December 2004.

The Department of Labor this week requested information from the banks regarding the carrier's 2,400-member machinists union's defined-benefit plan, according to the Associated Press.

The investigation concerns prebankruptcy events that occurred under the direction of former CEO Glenn Zander.

The banks in question—First Hawaiian Bank, Bank of Hawaii, American Savings...
To view the full article, register now.