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This profile was last updated on 5/23/15  and contains information from public web pages and contributions from the ZoomInfo community.

Harold C. Johnston Jr.

Wrong Harold C. Johnston Jr.?

Director and Chief Executive Offi...

Summit Communications , Inc.

Employment History

Board Memberships and Affiliations


  • Kamehameha Schools
  • MBA
    San Jose State University
  • Bachelor of Science Degree
    the United States Naval Academy at Annapolis , Maryland
10 Total References
Web References
Harold Johnston has worked ..., 23 May 2015 [cached]
Harold Johnston has worked in the telecommunications industry since 1968 and in 1996 he cofounded Summit Communications, Inc. (Summit) to provide communications-related services to businesses in Hawaii.
In 1998, Johnston was approached by Al Hee, the founder of another communications services provider, Sandwich Isles Communications, Inc. (SIC), to manage SIC's telephone operations.
Johnston was initially hesitant to join SIC as he felt a duty to ensure Summit's financial well-being. In order to induce Johnston, Hee offered him (in addition to salary and benefits) a loan of $450,000, with the understanding that if he accepted the loan, Johnston would in turn lend the $450,000 to Summit in order to support its operations.
Johnston and SIC executed an employment agreement in 1998, which allowed Johnston to continue to serve as a director and chief executive officer of Summit, and stated that the SIC loan would become due upon the termination of Johnston's employment with SIC. Later that year, Johnston requested an additional $20,000 loan from SIC's parent company, Waimana Enterprises, Inc., and passed the funds on to Summit. In 2000, SIC sold its interest in the original $450,000 loan to Waimana.
Shortly after Johnston began his employment with SIC, Summit began to receive sizable contracts from SIC, and in late 2000 it became apparent that Johnston was needed to manage Summit full time because of its rapid growth. In 2001, with Hee's approval, Johnston resigned his position with SIC. Although his resignation triggered his repayment obligations for the SIC loan, SIC and Waimana did not demand repayment of the SIC loan at that time, nor did either company issue a Form 1099-C, Cancellation of Debt.
In 2001 SIC received a large loan from the U.S. Department of Agriculture to finance a project to provide telecommunications service to rural communities in Hawaii. With the additional financing SIC reduced its reliance on Summit, which forced Johnston to reduce expenses, cut salaries, and lay off employees. Johnston continued to work for Summit until it filed for bankruptcy in 2002, and he went back to work for SIC in 2005.
Hee met with Johnston in 2011 and notified him that the SIC loan was still due and owing.
Johnston arranged to begin making payments on the SIC loan via payroll deductions from his SIC paycheck.
In 2010, in connection with an audit of SIC's return, the IRS audited Johnston's return for 2007. Despite the fact that he had been insolvent in 2007, Johnston agreed to an income adjustment of $20,000 related to COD income from the Waimana loan, resulting in a partial assessment of tax due for 2007. In 2013 IRS sent Johnston a notice of deficiency determining that he had failed to report COD income for the SIC and Waimana loans in 2007.
The IRS argued that Johnston realized COD income in 2007 because SIC and Waimana failed to take collection action on the $450,000 SIC loan before the period of limitations for collection expired in 2007.
The Tax Court disagreed with the IRS's claim that the SIC loan had been canceled, pointing out that Hee testified that Waimana considered the SIC loan outstanding and that Johnston was repaying the SIC loan via payroll deductions of $1,000 per month.
The court also noted that if the SIC loan had been forgiven, Waimana would have a strong incentive to report the loan as discharged so that it could benefit from a bad debt deduction, and that Johnston did not receive a Form 1099-C from Waimana discharging the SIC loan.
The IRS took issue with the fact that Johnston did not make a payment on the SIC loan until after the IRS examined his 2007 return, arguing that Johnston sought to repay the SIC loan only to escape taxes. The Tax Court disagreed, noting Johnston sought to repay the SIC loan because he understood it was his obligation to repay it.
The IRS additionally argued that Johnston realized COD income in 2007 from discharge of the $20,000 Waimana loan. Although Johnston's agreement to this adjustment during the 2010 audit resulted in a partial assessment of tax for 2007, he disputed this claim at trial. The court agreed with the IRS, noting that the fact the Waimana loan was written off in 2007 demonstrated the intention of Waimana to forgive the loan. Additionally, the court found no evidence that Johnston was repaying the loan, or that Waimana considered the loan outstanding.
However, the court concluded that because Johnston was insolvent in 2007, and neither the IRS's nor Johnston's calculations of his insolvency exceeded the canceled debt, the COD income of $20,000 was excludable from his income under Code Sec. 108(a)(1)(B).
Board of Directors, 2 Feb 2015 [cached]
Representative(s): Harold Johnston; Puni Kekauoha (alternate)
Council for Native Hawaiian Advancement, 15 April 2010 [cached]
Representative: Harold Johnston, President, and B. Puni Kekauoha, Executive Director
Mr. Johnston resides on Hawaiian Home Lands at Papakolea and is a graduate of the Kamehameha Schools and received a Bachelor of Science Degree from the United States Naval Academy at Annapolis, Maryland, and an MBA from San Jose State University. Mr. Johnston is the Director of Service & Operations for Sandwich Isles Communications and is responsible for overseeing the quality of network operations and services, and also for the planning and implementation of all new services, including emerging broadband technology applications. In addition to being a director of the CNHA board, Mr. Johnston serves as board president of the non-profit Papakolea Community Development Corporation, which supports educational and economic development opportunities for residents of Papakolea.
Cordell Inc. Announces New MetaSwitch-interoperable Network Management Capabilities | Metaswitch, 8 April 2009 [cached]
Harry Johnston, SIC's Director of Service and Operations, said that Cordell has been a true partner in supporting the network management aspects of SIC's continuing transition from a primarily TDM platform to the newer IP-based service platforms and applications. "We use Cordell as the focal point for network element alarming, after-hours notifications " environmental conditions trending," says Johnston.
Hawaii's Act 221: Wiping Out Hawaii's Taxpayers, 27 Nov 2009 [cached]
Summit, which provides call-center and telephone services, was founded in 1996 by Harry Johnston , a former executive of Hawaiian Telephone, and Richard Ichikawa, a former engineer of Hawaiian Telephone.
Harold Johnston resigned as president and was replaced by his son,Grant Johnston.
The report said the company had kept poor track of its finances, even in bankruptcy and that several questionable thousand-dollar payments had been received by Grant and Harry Johnston, which should be investigated by a trustee....
In a court document, Summit said the examiner, Mark Yee, focused on matters that happened before Harold Johnston stepped down, which provided an inaccurate picture of Summit's situation.
Sandwich Isles Communications Inc., headed by Al Hee, loaned the money in March 1998 to Summit through Summit's then-chief executive and part-owner, Harold C. Johnston , according to a lawsuit.
In 2001, Harold Johnston received $8,400 in interest payments from Summit for the loan .
Harold Johnston denied loaning the money to Summit.
The trustee, Derek J. Sakaguchi, filed a lawsuit April 30 in U.S. Bankruptcy Court against Harold Johnston and his sons Grant Johnston and Chad C. Johnston, who were all officers of Summit.
The five-count suit said Harold Johnston misled some of Summit's directors, investors and creditors about the relationship with Sandwich Isles, which allowed the company to continue to operate under the status quo when it was in trouble .
The lawsuit also accuses the Johnstons of receiving excessive compensation and benefits ....
Hee, president of Sandwich Isles, and Harold Johnston confirmed that Sandwich Isles made a loan to Johnston.
"Whatever happened between me and Sandwich Isles is a private and personal matter," Johnston said.
They declined to answer any questions about the loan, including its status or its purpose.
However, the lawsuit said: "A loan for $456,793to SCI made in March of 1998 was shown on SCI's financial statements as a loan made by Harold Johnston. In fact the $456,793 was loaned and funded by Sandwich Isles."...
The loan was secured by a pledge of Harold Johnston's stake in Summit, the lawsuit said . Harold Johnston owned 37.7 percent of Summit as of January 2003, while Ichikawa owned 25.1 percent .
Al Hee said the loan to Johnston did not involve any federal funds.
That was around the same time that Sandwich Isles loaned the money to Johnston .
Also around that time, Johnston stopped spending time with Summit and became general manager for Sandwich Isles.
After Harold Johnston began working for Sandwich Isles, Chad Johnston became responsible for day-to-day operations at Summit.
In a letter to Summit shareholders, Harold Johnston said he was not aware until January 2001 that Summit was not paying its taxes.
Harold Johnston said an outside accountant had been handling those affairs, and was terminated. He declined to name the accountant.
The court-appointed examiner has described Summit's pre-bankruptcy books as worthless ....
Johnston said he accepts some responsibility for Summit's financial problems, but he did not commit fraud or other misdeeds.
The lawsuit seeks repayment of the $8,400 in interest that Harold Johnston allegedly pocketed from the loan to Summit, as well as repayment of a $50,245 loan Summit allegedly made to Harold Johnston.
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