BlueSky Communications Sues Former President CEO

adolfo-montenegro

BlueSky Communications has sued its former president and CEO, Aoee Adolfo Montenegro, and his company, ACMA Management Consulting Inc, for compensatory, consequential and punitive damages for an amount according to proof at trial and for punitive damages from the defendants.

The suit filed yesterday by Attorney Richard de Saulles in the High Court, Trial Division states that this action arises from greed.

It alleges that despite earning hundreds of thousands of dollars each year as CEO of BlueSky’s family of companies in the South Pacific, Montenegro and his company, ACMA Management Consulting Inc. exploited their position of trust and authority with Bluesky to improperly assign a property lease of a house renovated by Bluesky to ACMA, Montenegro’s company, while also diverting business funds for Montenegro’s personal use without the knowledge or consent of shareholders of BlueSky.

Defendant ACMA is a management company that Montenegro set up to provide management services for BlueSky’s companies here, and Samoa.

According to the lawsuit, under the last management agreement between BlueSky and ACMA which was effective in April 2014, ACMA agreed to provide the services of Montenegro as President and CEO of BlueSky in American Samoa and Blue Sky Samoa.

Montenegro’s compensation package according to the suit included a salary of $260,000 per year, an annual bonus of up to $130,000, a stay bonus of up to $100,000, housing and transportation expenses including a vehicle not to exceed $109,000 per year, a daily per diem of $110, tuititon reimbursement for children of $20,00 per year for two children, a travel allowance of up to $60,000 per year plus health and life insurance reimbursements of up to $36,000 per year.

Other benefits included free internet and cell phone usage, gym fees in both Samoa, and 20 paid vacation days per year.

Montenegro also enjoyed the use of company housing in American Samoa, Samoa and Cook Islands.

Tbe suit alleges that Montenegro while CEO converted a home leased by BlueSky on Canco Hill to his company, ACMA, without authorization, that he engaged in unjust enrichment of himself at BlueSky’s expense, that Montenegro breached his fiduciary duty to Blue Sky when he illegally transferred the lease property to his company and spent $50,000 of company money on renovations of the home, that his actions breached his duty of loyalty to act in good faith and not to commit acts of fraud, bad faith or willful tortuous misconduct and that he breached the covenant of good faith and fair dealing implicit in the management agreement between Bluesky and ACMA by, in bad faith, unilaterally converting property of BlueSky for his personal use and benefit and doing so without proper notice or adequate consideration to BlueSky.

The suit states that in 2015, BlueSky’s parent company Amper was facing financial struggles resulting in a capital shortfall.

Seeing an opportunity, on or about January 2015, Montenegro through counsel Barry Rose formally notified Amper and BlueSky of his intention to organize an investor group to purchase certain equity interest in BlueSky and ASH, the American Samoa Hawaii Cable, of which ASG is a minority shareholder.

The suit alleges that Montenegro, while CEO of BlueSky made both direct and indirect efforts to disrupt and or frustrate the planned buyout of BlueSky, even after Bluesky’s parent company had signed a letter of intent with Fiji company Amalgamated Telecom Holdings, and after Montenegro had been instructed by Amper to facilitate the sale of BlueSky to ATH.

Meanwhile Montenegro headed a group of investors who made an offer to buy BlueSky.

The complaint states that an investigation is still ongoing into the various dealings of Montegnero and the plaintiff anticipates moving the court to amend the complaint once sufficient evidence to support additional causes of action is obtained

In addition to compensatory, consequential and punitive damages from Montenegro and ACMA in an amount according to proof at trial, the suit seeks declaratory judgment that the home at Canco Hill belongs to Bluesky and a lease agreement that Montenegro effected assigning the home to ACMA is null and void.

BlueSky also wants all its funds and assets that were coming with Montenegro and ACMA’s to be reimbursed or returned.

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