Opinion ID: 3050656
Heading Depth: 3
Heading Rank: 1

Heading: Hawaii Environmental Holdings (HEH)

Text: In 1993, Sparkman purported to create and transfer his business to Hawaii Environmental Holdings (“HEH”), styled in its formation document an “Unincorporated Business Organization.” The formation document, entitled “Contract and Declaration of Unincorporated Business Organization,” provides that Sparkman (identified as the “Exchanger or Exchangers”) will convey the Mercury Solar business to HEH in exchange “for twenty-five dollars of silver, Certificates comprising a total of one hundred units, and other full and adequate consideration.” The formation documents also provide for a “Trustee” who will be responsible for the “exclusive management and control of [HEH’s] property and business affairs without any consent of Certificate holders.” The original such “Trustee” was “Lee Allan Hansen,” who is not otherwise identified in the record. The trustee immediately appointed Sparkman as “Agent” and “President” of HEH, with authority “to open bank accounts, act as the official authorized signature on said bank accounts and to operate the company to the same extent as if he were the owner.” Two months later, Hansen appointed Amanda Porter,2 at the time Sparkman’s wife, to be trustee. In 1996, Porter was removed as trustee, and Hansen appointed Sparkman himself and Cynthia McNeff as trustees. McNeff was removed as trustee the following year, and in 1999, Hansen was removed, leaving Sparkman as the sole trustee of HEH.