luxury yacht grounded in maui

Efforts underway to remove a dinner cruise yacht ran aground off Maui coast

Efforts to defuel a luxury tour yacht that ran aground in shallow waters off Lahaina, Hawaii , last week are underway. 

The Maui Princess, a 100-foot passenger vessel widely popular for its sunset dinner cruises around Maui, broke free from its mooring farther offshore on Thursday after “a part reportedly failed,” according to a news release by the Hawaii State Department of Land and Natural Resources (DLNR). The ship drifted closer to shore and ended up stuck on “a shallow shelf of sand and rubble.”

The incident did not cause any injuries. 

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Maui Princess owner David Jung hired Willoughby Consulting and Adjusting to lead the defueling effort. The company started removing the ship’s 2,500 gallons of fuel, batteries, hazardous materials and other items on Monday afternoon. 

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The release said the process is expected to take several days and involve up to 10 helicopter trips to remove the majority of the fuel. 

“This is pretty calm compared to the stuff I’ve done in the past,” David Willoughby from Willoughby Consulting and Adjusting said in a transcription from Monday.

Jung did not immediately respond to USA TODAY’s request for comment but told local media outlet KITV 4 Island News on Friday that the grounding was an accident. 

Since the Maui wildfires destroyed Lahaina Harbor last August, the boat has paused all commercial operations and struggled to find a location to be permanently docked. 

The DLNR Division of Aquatic Resources is “providing expertise and guidance for the removal operation to minimize any additional impacts to important hard substrate and living corals in the area.” Aquatic biologists have been unable to assess possible damage to marine life due to high surf along the West Maui coastline.

After the defueling, a salvage contractor will move the boat into deeper water during high tide. 

Last February, a different private luxury yacht ran aground off the northern coast of Maui. The vessel leaked fuel into the ocean and damaged coral and live rocks.  

Kathleen Wong is a travel reporter for USA TODAY based in Hawaii. You can reach her at [email protected] .

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Owners of grounded luxury yacht Nakoa seeking contested case over $1.8 million fine

The owners of the luxury yacht Nakoa want a formal contested case hearing to fight a $1.8 million fine assessed last month by the Board of Land and Natural Resources.

On April 26, the Land Board increased an initial fine more than 10 times for environmental damage inflicted when the vessel went aground on a reef about 600 yards north of the Honolua-Mokulē‘ia Bay Marine Life Conservation District in February 2023. The fine took into account biological and cultural damages, as well as “emotional distress to the community.”

This coming Friday, the Land Board will take up a recommendation to deny the April 30 request of yacht owners Kevin and Kimberley Albert for a contested case proceeding. They are represented by attorney Randall Schmitt of the Honolulu law firm McCorriston Miller Mukai MacKinnon.

In his letter to the board, Schmitt said yacht owners Kevin and Kimberley Albert maintain there’s “no basis to impose liability against either the Alberts or (their) Trust because the grounding took place following the theft of the vessel, and neither the Alberts nor the trust violated any provisions of the Hawaiʻi Administrative Rules.”

Schmitt also said damage from the initial grounding must be separated from the damage related to salvage. “DLNR and its chosen salvor were the cause of the much greater damage, and they should be responsible for the damage caused by their choices and conduct,” he said.

“As members of the Save Honolua Coalition and residents who were front and center trying to mitigate any further damage this boat caused, and being present to see the utter negligence and disrespect for our place, we find the recent developments deeply concerning. As locals and as Hawaiians, we are compelled to accept the consequences of our actions, especially when they involve negligence or rule-breaking,” said Paele Kiakona President of Save Honolua Coalition.

Kiakona said the statement from the boat’s owner, now challenging the $1.8 million fine imposed by the Board of Land and Natural Resources, raises serious questions about accountability. “During the official hearings held by the BLNR to address this issue and determine appropriate fines, community members diligently participated, voicing their concerns and impacts. In stark contrast, the owner’s representatives failed to appear at any of these sessions to present their perspective. This absence should cast doubt on the legitimacy of any subsequent claims or defenses they might attempt to assert regarding this matter,” he said.

The Land Board’s Division of Aquatic Resources recommends denying the petition for a contested case hearing because the board is not required to do so when the petitioners fail to comply with procedural requirements.

Schmitt maintains the Alberts complied with legal requirements because their April 30 submission was within 10 days after the end of the board meeting on April 26.

The Aquatic Resources Division said there’s a two-step legal requirement: First, a request for a contested case hearing by the board must be made orally or in writing by the close of the board meeting at which “the subject matter of the request is scheduled for board disposition.” Then, “the initial request must be followed by the filing of a written petition no later than 10 calendar days after the close of the Board meeting at which the matter was scheduled for disposition.”

However, for good cause, the time period for making such requests may be waived, the division staff says. And, it adds that the “petitioners have not provided good cause for why the board should waive the requirements” of requesting a contested case hearing in time periods set out in administrative rules.

Kiakona called the petition for a contested case hearing “a further attempt to evade responsibility.”

“Our community fully supports the BLNR’s efforts to proceed with the enforcement of the fine and to deny this petition, reinforcing our commitment to justice and accountability. The owner’s continued attempts to deflect blame onto others, including the salvage company and individuals within their organization, only underscores their reluctance to accept responsibility for their actions. Ultimately, the responsibility lies with the owner. Our community is united in its call for justice and insists that this situation serve as a deterrent to prevent future disregard for our land and its people,” according to an email response for comment from the Save Honolua Coalition.

The Alberts’ dispute of the reef damage fine is one of many items on a busy Land Board agenda for its May 24 meeting. That meeting is set to begin at 9 a.m. in the DLNR Board Room at the Kalanimoku Building at 1151 Punchbowl Street, 1st Floor, in Honolulu. The Land Board’s deliberations will be on Zoom (meeting ID: 893 5594 2602) or Zoom link: https://us06web.zoom.us/j/89355942602 . The meeting will also be available livestream on YouTube at https://www.youtube.com/live/2r_eOTqSlsM .

Written testimony is encouraged prior to the meeting so it can be distributed to board members and allow their timely review of submittals. Testimony can be emailed to [email protected] or mailed to the Land Board at P.O. Box 621, Honolulu 96809.

After it was grounded for nearly two weeks, the yacht was scuttled in 800 feet of water on March 5, 2023, after it was freed from the rocky coastline near Honolua. According to the DLNR division staff, the department’s Division of Aquatic Resources conducted two biological damage surveys and documented at least 119 stony coral colonies and at least 1,640.5 square meters of live rock that were damaged as a result of the grounding.

The original fine of $117,471.97 was recommended by the DLNR Division of Aquatic Resources, while leaving consideration of penalties for biological and cultural damage, and community distress, to the board. After hearing impassioned public testimony, including one calling the proposed fine a “slap on the wrist,” the Land Board ordered a fine of the statutory maximum of $1,818,851.97, payable by the responsible parties within 60 days of the April 26 board meeting.

It was the third time an enforcement action against Jim Jones, Noelani Yacht Charters, LLC and Kevin S. Albert, Kimberly L. Albert, and the Albert Revocable Trust, had come before the Land Board. Earlier, in July 2023, the board reached a tentative agreement with the Alberts and their trust to pay the lesser fine. However, the Land Board reserved its right to assess fines and penalties against Jim Jones and Noelani Yacht Charters. After six months and  despite numerous requests  to the Alberts, the settlement failed to materialize.

In January, the DLNR renewed its administrative enforcement action against all parties. At the board’s direction, the department held a community meeting Feb. 22 at Kumulani Chapel in West Maui to solicit public input about the proposed fine and the the grounding incident.

Residents told state officials the fine amount was too low, and a maximum fine should be imposed as a deterrent against future groundings. Members of the public also called for improved policing and management of Honolua Bay, which they maintained should be closed to all commercial activities.

*Editor’s note: This post was updated to include comments from the Save Honolua Coalition, which were received after initial publication.

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Defueling of grounded luxury yacht on Maui done; $460,000 plus salvage operation next

On Saturday, defueling of the 120-ton, 94-foot luxury yacht “Nakoa” that was grounded along the shoreline of Maui was completed.

Next is the $450,000 plus salvage operation that is expected to begin on Sunday just outside the Honolua-Mokulē’ia Marine Life Conservation District, according to the Hawaiʻi State Department of Land and Natural Resources. 

The U.S. Coast Guard assumed responsibility for the operation to remove an estimated 470 gallons of petroleum products, other hazardous substances, and 14 marine batteries off the yacht owned by Jim Jones.

The boat grounded six days ago. Although the area has day-use moorings with a time limit of two hours, Jones told media that he didn’t know the rules and stayed overnight with his family when one of the lines snapped and the boat hit the rocks.

The Coast Guard retained Sea Engineering of Honolulu as the contractor.

Sea Engineering hired Maui-based Pacific Helicopters Hawai‘i to fly 55-gallon drums of fuel from the boat’s stern to a staging area near the top of Līpoa Point, where they were transported by truck for disposal. 

Chief David Jones of the Coast Guard Sector Honolulu called the defueling a success.

“For the last five days we’ve been working with the contractors from Sea Engineering and Pacific Helicopters, starting with getting on the vessel and putting absorbent materials down to collect any free petroleum products,” he said. “Then for the last three days we’ve had the flight operations. Folks on deck pumped any fuel, oils and other materials out of tanks and machinery spaces into the barrels, where they were airlifted to land to be hauled off for proper disposal.”

David Jones and others characterize safe defueling as a complex operation that takes time and expertise to plan and execute. 

Sea Engineering President Andrew Rocheleau said the 2 1/2 days to defuel the yacht took longer because the vessel is listing, or leaning to one side, at the shoreline, so fuel moved into baffles within the boat’s 2,400-gallon tank.

“It took additional time to get into each of those compartments and either pump diesel out or use absorbent pads to soak it up,” he said. 

Rocheleau and everyone working on the defueling and salvage of the yacht understand the frustration many people on Maui have expressed about it taking almost a week to try and float the boat off the nearshore rocks and reef. 

“The process is actually fairly streamlined,” Rocheleau said.

Even before the Coast Guard and Department of Land and Natural Resources were notified by the vessel’s owner that he couldn’t pay for defueling or salvage of the 94-foot-long yacht, discussions and planning were already underway between the agencies and contractors, Rocheleau said.

“It takes time, as you have to assess risk to personnel, planning for safe helicopter operations, procurement and being sure that all government rules, regulations and laws are followed,” Rocheleau said. 

Now that defueling is finished, the vessel is under the control of the state Division of Boating and Ocean Recreation. The division contracted Visionary Marine of Honolulu to salvage the vessel and the company is expected to begin work Sunday morning. 

The dirt road leading into a viewing area at Līpoa Point will remain closed during the salvage operations for safety. 

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Crews await favorable tides to attempt Honolua Bay luxury yacht removal

by: Sandy Harjo-Livingston , Elizabeth Ramos

Posted: Feb 20, 2023 / 10:26 PM HST

Updated: Feb 27, 2023 / 09:58 PM HST

HONOLUA BAY, Hawaii (KHON2) — According to the Department of Land and Natural Resources, on the evening of Feb. 27 the rigging attached to the grounded yacht on Honolua Bay failed.

DLNR said crews are headed back to Oahu to resupply with stronger rigging and will resume operation Wednesday.

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Late on Sunday, DLNR said that a crew and ship from Visionary Marine LLC attempted more than a dozen pulls of the grounded yacht, Nakoa, during high tide.

DLNR said that after dark they managed to move the vessel that had been grounded for almost week with their final pull. The vessel moved about 10 to 20 feet, however, an estimated extra 20 to 30 feet of movement will be needed to clear the yacht from the rocky coastline.

DLNR said the salvage crew will return to the location tomorrow, Feb. 27 to continue operations, meanwhile, the dirt road at Lipoa Point will remain closed until the operations have concluded.

Earlier in the day, DLNR had mentioned that the salvage ship, Kahi, was circling outside of Honolua-Mokulē’ia Marine Life Conservation District, waiting for ideal tide conditions to free the 120-ton luxury yacht, Nakoa, stuck on the shoreline.

Since early this morning, the salvage ship has been rigging Nakoa with ropes and straps in preparation for the haul according to DLNR. It was added that the yacht has also sustained several holes in its hull from bouncing around on rocks in the surf for six days.

“It is our hope that first pull will free the boat and allow the salvage company to pull it out into deeper ocean water,” said DOBOR Administrator, Ed Underwood.

On Feb. 25, DLNR said that the luxury yacht had been defueled and that salvaging efforts would begin Feb. 26.

The U.S, Coast Guard had to assume operational responsibility for the removal of an estimated 470 gallons of petroleum products along with hazardous materials and 14 marine batteries.

“For the last five days we’ve been working with the contractors from Sea Engineering and Pacific Helicopters, starting with getting on the vessel and putting absorbent materials down to collect any free petroleum products.” said Chief David Jones, of the USCG Sector Honolulu

USCG said they hired local contractors to “fly 55-gallon drums of fuel from the boat’s stern to a staging area near the top of Līpoa Point, where they were transported by truck for disposal.”

“Then for the last three days we’ve had the flight operations. Folks on deck pumped any fuel, oils, and other materials out of tanks and machinery spaces into the barrels, where they were airlifted to land to be hauled off for proper disposal,” explained Jones.

Jones also stated that defueling is a complex process that requires skill and expertise to perform.

Because the vessel ended up resting on one side, also known as listing, the defueling process took longer than usual.

“It took additional time to get into each of those compartments and either pump diesel out or use absorbent pads to soak it up,” said Sea Engineering President Andrew Rocheleau.

Rocheleau also acknowledged the frustration that folks are feeling with the length of time this has taken.

“The process is actually fairly streamlined. Even before the USCG and the DLNR Division of Boating and Ocean Recreation (DOBOR) were notified by the vessel’s owner that he couldn’t pay for defueling or salvage of the 94-foot-long yacht, discussions and planning were already underway between the agencies and contractors,” added Rocheleau. 

There is much more to defueling than simply taking out diesel from the boat.

“It takes time, as you have to assess risk to personnel, planning for safe helicopter operations, procurement and being sure that all government rules, regulations and laws are followed,” Rocheleau explained. 

DLNR said that now that the defueling process has been complete, DOBOR has taken control of the vessel. They have contracted with a local company to salvage the yacht which is expected to commence on Sunday, Feb. 26; and for everyone’s safety, the dirt road that provides access to Līpoa Point will remain closed throughout the rest of the salvaging process.

The County of Maui provided information on the luxury yacht Nakoa that has been grounded outside the marine sanctuary at Honolua Bay. The Department of Land and Natural Resources said that it will probably be another few days before the 94-foot yacht can be freed.

There were attempts on Monday afternoon, Feb. 20, to dislodge the vessel, but they were unsuccessful. And, this morning, Feb. 21, DLNR said they found diesel fuel leaking from the vessel’s hull into the surrounding water.

DLNR Division of Conservation & Resources Enforcement reported that a friend of the owner boarded the vessel today to shut off all pumps which made the sheen go away but that the smell of fuel remained present.

DLNR DOCARE said they are placing booms around the fuel to prevent more leakage beyond the area.

In response to this issue, Maui County Officials said they issued an emergency permit to “allow equipment to access the site via the shoreline and assist in dislodging the vessel from the reef it is resting on and enable it to reach deeper water to exit the area.”

The emergency permit was issued by Acting Planning Director Kathleen Ross Aoki Monday afternoon after discussions with West Maui Council Member Tamara Paltin and the excavation company involved.

According to the DLNR, the owners of the luxury yacht have hired a private contractor to salvage the vessel.

DLNR said it is the responsibility of the owner to remove their vessel when it runs aground and to work closely with DLNR to ensure that the vessel is removed with the least amount of damage possible to the marine environments.

The U.S. Coast Guard has determined that fuel and batteries need to be removed. They federalized the vessel today which means that all fuel, batteries and other pollutants must be removed from the yacht before it can be moved.

Once these potential hazards are removed, the U.S.C.G. said they will release the yacht back to the owner. The owner will be required to provide a salvage plan for the boat’s removal, and the plan must be approved by the U.S.C.G.

In the case that the plan is not approved, the owner will have to formulate a new strategy. If the owner cannot afford to perform the salvage, Hawai’i state will take control of the salvage effort, and the owner will be have to pay the State back for all expenses.

DLNR added that as of 10 a.m. Tuesday, they are awaiting a written salvage plan from the yacht owner and is expecting for it to entail the use of a tugboat to pull the yacht out to sea.

DLNR said that they do not currently plan to issue a permit allowing an excavator to try and push the boat out from land.

DLNR’s Division of Aquatic Resources performed an initial underwater assessment in an attempt to estimate damage and potential damage to the coral reef and live rock on which the boat rests. However, they said they will not know the full extent of the damage until the yacht has been removed.

DLNR DAR said that based on their initial estimates, the owner may be facing some fairly hefty penalties since coral reef and live rocks are protected under State law.

“We are coordinating our actions very closely with Maui County, the boat’s owner, the USCG, area legislators and the salvage company. We want to do everything possible to prevent any additional damage to the reefs in the MLCD or elsewhere in the bay” said Dawn Chang, DNLR Chair.

DLNR DOCARE said they are investigating the circumstances that led to Nakoa being grounded, and indicated that there may more fines and penalties levied once their investigation is done.

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“We understand everyone’s frustration with the grounding and harm to the reef at Honolua, a bay with abundant marine life that’s loved by many residents of Maui and visitors alike. Wednesday, the focus will be defueling the vessel; and then, we can turn to efficient removal with the least additional damage possible,” said DLNR First Deputy Laura Kaakua.

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Salvage of grounded luxury yacht continues Monday

KAPALUA, Maui — Salvage work of a luxury yacht that ran aground in Honolua Bay in northwest Maui will resume on Monday after more than a dozen "pulls" were attempted on Sunday, the Department of Land and Natural Resources said.

After dark, the final pull managed to move the vessel, which has been grounded since Feb. 20, about 10 to 20 feet.

"It's estimated another 20-30 feet of movement seaward will be needed before the yacht is clear of the rocky coastline," the DLNR said.

On Saturday, officials defueled the vessel, which has been grounded outside the Honolua-Mokuleia Marine Life Conservation District.

What You Need To Know

The nakoa, a 94-foot yacht owned by noelani yacht charters, ran aground in honolua bay on monday, feb. 20 during an attempt to remove the vessel from the reef tuesday morning, some fuel leaked into the bay officials have defueled the luxury yacht and began salvage operations on sunday, which will resume on monday initial assessments of the reef found that there was some damage to corals; the owners may face "significant penalties".

The dirt road at Lipoa Point will remain closed until salvage operations have concluded.

The U.S. Coast Guard assumed responsibility for the salvage operation to try to remove some 470 gallons of petroleum products, including diesel fuel, and other hazardous substances off the yacht.

“For the last five days we’ve been working with the contractors from Sea Engineering and Pacific Helicopters, starting with getting on the vessel and putting absorbent materials down to collect any free petroleum products," said Chief David Jones, of the U.S. Coast Guard Sector Honolulu. "Then for the last three days we’ve had the flight operations. Folks on deck pumped any fuel, oils, and other materials out of tanks and machinery spaces into the barrels, where they were airlifted to land to be hauled off for proper disposal.” 

The yacht's owner Jim Jones  told the Honolulu Star-Advertiser  last week that seawater entered the engine room of the 94-foot yacht, which made the ship's bilges pump out diesel fuel. He said “not a lot” got in the water and the pumps have been turned off.

“Once we found out the fuel was coming out, we turned it over to the Coast Guard,” Jones said.

The Coast Guard brought in the salvage company Sea Engineering to remove the fuel and vessel, the company's president, Andrew Rocheleau, said.

Once all fuel and pollutants are removed, the Nakoa will be released to its owner. Then, the owner must provide an acceptable salvage plan to the DLNR. If the agency doesn’t find the plan satisfactory, the state will remove the yacht and the owner will be responsible for the cost of the salvage operation. 

The yacht  ran aground Monday morning  in Honolua Bay after its mooring line snapped.

The vessel is stuck on the rocks near where surfers paddle out to surf. It's about 700 feet outside the state's Honolua-Mokuleia Bay Marine Life Conservation District.

According to the DLNR release, a team from its Division of Aquatic Resources conducted an underwater assessment of the area’s coral reefs and live rocks. “Divers noted an estimated 30 coral and live rock that were damaged, but will need to return to do a more thorough assessment once the vessel is removed.” It said that the owner may face “significant penalties” as corals and live rock are protected by state law. 

Other fines may be levied via DLNR’s Boating and Ocean Division and DOCARE once the investigations are completed. 

“We understand everyone’s frustration with the grounding and harm to the reef at Honolua, a bay with abundant marine life that’s loved by many residents of Maui and visitors like,” said DLNR First Deputy Laura Kaakua. “Wednesday, the focus will be defueling the vessel, and then we can turn to efficient removal with the least additional damage possible.”

The Nakoa is one of two luxury yachts owned by Noelani Yacht Charters. It has four bedrooms, five bathrooms and a full kitchen. Charter packages start at $9,801, according to the company’s website.

—The Associated Press contributed to this story.

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Board fines trust $117,000 over grounded yacht incident

Penalties for vessel operator to be decided by state at a later date.

The 94-foot luxury yacht Nakoa is seen grounded along the rocky shoreline in the Honolua Bay area on Feb. 24. — The Maui News / MATTHEW THAYER photo

A trust affiliated with the luxury yacht that was grounded for two weeks on the West Maui shoreline will pay a fine of around $117,000 for the damages and costs to the state under a settlement agreement approved Friday by the state Board of Land and Natural Resources.

Kevin and Kimberly Albert, trustees of the Albert Revocable Trust in New Mexico, will pay the state a recommended a penalty of $117,471.97, which was calculated by the state Department of Land and Natural Resources’ Division of Aquatic Resources.

DAR officials said at Friday’s board meeting that the total was based on the biological damage — which included damage to 119 stony coral colony specimens and 1,640.5 square meters of live rock — along with violations and staff costs.

But penalties for Jim Jones of Noelani Yacht Charters, who bought the 94-foot luxury yacht “Nakoa” from the trust and had been on the vessel when it grounded, will be determined later.

“We primarily want more community input such as cultural impact from the Nakoa grounding incident,” said Board Member Doreen Canto of Maui, who made the motion to accept the settlement agreement and defer action for Jones and Noelani Yacht Charters.

A damaged coral is shown during an assessment by the state Department of Land and Natural Resources’ Division of Aquatic Resources at Honolua Bay on March 7. — Photo courtesy DLNR

Board Member Wesley “Kaiwi” Yoon said that “the board is still contemplating and open to seeking any kind of fair and reasonable damages done to our cultural and natural resources.”

He said he wanted to be clear to the community and those who hold Honolula Bay as very special that “it’s not over.”

“Just because we are settling here because it is fair and reasonable based on our metrics and in-house metrics as to what kind of damage this is, and what that might cost to the coral might be,” he said. “I personally struggle with the fact that there is no abacus or calculator to either begin to quantify how much adverse affect the cultural resources might cost. I’m hopeful with this board and this administration that we can soon take those steps to contemplate that.”

Canto, Yoon and other board members initially felt the recommended fines for all the parties, which included the trust and Jones, was too low.

“I just don’t agree with it all.

It does an injustice to our department,” Canto said prior to an executive session to discuss the possible settlement.

BLNR Chairwoman Dawn Chang said she understood board members’ concerns but noted that the settlement agreement does not preclude the board from seeking damages from Jones.

Chang also said that the Albert trust insurance repaid the state for the approximately $470,000 in towing costs and that the trust has cooperated with the state.

The settlement agreement also releases the Alberts and the trust from any future claims related to the incidents.

Charlie Taylor, a legal fellow with the Division of Aquatic Resources, explained the breakdown for the fines — $60,220 for the resource value that was damaged, $56,851.97 in administrative costs relating to the incident and $400 for other violations.

Taylor said that DAR uses its own matrix in deriving penalties for damaging stony coral and live rock, in which marine life is visibly attached or affixed. He said the matrix is used because damages to coral or live rock may not be all the same, and there is also differing values to corals.

State law does allow for a fine of $1,000 per coral specimen injured along with $1,000 per live rock specimen injured.

The maximum administrative fine for the 119 stony coral colony specimens damaged would be $120,000, which includes a $1,000 administrative fine for a first-time stony coral damage violation. The maximum administrative fine for the 1,640.5 square meters of live rock damage would be $1.642 million, which would also include the $1,000 administrative fine for the first-time live rock damage, Taylor said.

“This tool and what we are doing, we are investigating the biological impact to the area. We are focusing on living coral and on live rock habitat,” said Russell Sparks, state aquatic biologist on Maui, in response to a board member’s question regarding the fine recommendation.

“I know a lot of people were upset, it was a big boat, it was very visible, it was very upsetting,” Sparks said. “We don’t have a way from a biologist point of view of integrating that into this. That’s more your role I guess in the fines. But from a biological perspective, this is what we found.”

The yacht grounded along the rocky shoreline in late February, setting off a two-week struggle to remove it and spurring public criticism from residents and environmental advocates.

Jones was on the Nakoa with family, friends and a crew and had moored the 120-ton yacht overnight in Honolua Bay from Feb. 18 to 19, according to DAR.

Between 5:20 and 5:45 a.m. on Feb. 20, the Nakoa became adrift and grounded onto the shoreline. Eight boaters on board were rescued by the Maui Fire Department. Officials tried to remove the yacht the same day during high tide but were unsuccessful. The next day, Maui DAR staff conducted the first biological site assessment.

State officials said the grounding was outside the Honolua-Mokuleia Bay Marine Life Conservation District.

After the U.S. Coast Guard “federalized” the vessel, allowing for the removal of batteries, fuel and other potentially hazardous materials, DLNR and a salvage team worked to move the yacht from the shoreline. Some attempts failed due to poor weather and failed rigging.

But on March 5, the team was able to move the Nakoa into deeper water, and as they towed it out to sea, it sank in about 800 feet of water.

Maui DAR staff conducted a second biological site assessment of the damages on March 7.

Community members during the meeting on Friday asked the board to levy the maximum penalties possible.

Paele Kiakona, who is acting president of the Save Honolua Coalition and said he was one of the first that responded to the grounding, understood the damage assessment for the coral and live rock but questioned the potential damage that leaking diesel has caused. DLNR officials said shortly after the grounding that diesel fuel was leaking from the boat’s hull and that booms had been placed to keep it from moving out of the area.

Kiakona advocated for the maximum fine, noting also the “emotional damage that is has done to the community” and to “people like myself that utilize this area and care very deeply about this place.”

“This will send a strong message to communities across Hawaii to show that our state is advocating for the right thing. And I believe this is the right thing to do,” Kiakona said.

Kai Nishiki, an environmental and shoreline access advocate, also asked for the maximum fine.

“This is really about setting a precedent and sending a real message about how important our public trust resources are and protection of them,” Nishiki said.

Napili resident Leonard “Junya” Nakoa, who also pushed for a maximum fine, said he goes to the area once or twice a week, while some go there every day.

“We got to deal with these dummies that come over there and disrespect our cultural rights and our resources and everything about Honolua and what it means to us,” Nakoa said.

He added that while the yacht was grounded, he and other community members couldn’t go to the site as they normally do.

In March, the Albert Revocable Trust filed a lawsuit in federal court against Jones and his company, Noelani Yacht Charters, seeking more than $2 million in damages.

The lawsuit said Jones and the company purchased the yacht for $1.45 million in December and used the commercial vessel “in a grossly negligent manner” for a personal trip without seeking the approval of the trust. The suit also was filed against the captain.

The Alberts are seeking at least $1.45 million for the loss of the yacht, which was supposed to be paid off over the course of 15 years, as well as at least $500,000 for the salvage work and at least $500,000 for environmental damages, according to the suit filed in March.

* Staff Writer Melissa Tanji can be reached at [email protected].

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Maui Yacht Owner: ‘I Didn’t Know What I Was Getting Into’

Jim Jones says he wants to make things right, but former employees and Maui residents say he shouldn't have a boat.

Jim Jones says he wants to make things right, but former employees and Maui residents say he shouldn’t have a boat.

The owner of a luxury yacht that ran aground last month in Honolua Bay is trying to salvage his reputation as efforts continue this week to remove his 94-foot Sunseeker from a delicate reef off Maui.

“We are taking full responsibility for this,” Noelani Yacht Charters owner Jim Jones said Thursday. “We’re not running.”

That assurance may not be enough to persuade Maui politicians, community advocates and local mariners who say he shouldn’t stay in business at all. Several of his former workers have said he repeatedly ignored state boating regulations and skirted recommended safety practices, to the point where multiple people who worked with Jones said they quit because of risky behavior.

“He shouldn’t be allowed to have a boat,” a former worker said, speaking on the condition of anonymity .

Jones said he started out with a dream to buy a boat. A woodworker by trade, he began looking for one a few years ago around Honolulu and first set his eyes on a 65-footer — a “big monster boat.”

But his friend, a boat captain, cautioned him against getting one so big for his first vessel. Plus, harbors to store boats of that size are scarce in Hawaii. Where would he put it?

So Jones kept looking until 2020, when he settled on what he thought was the perfect opportunity: a 74-foot yacht that came with its own slip in Kewalo Basin Harbor. It had been used for charters in the past, and by renting it out in the future, Jones hoped it would pay for itself. The owner agreed to let him pay it off over time, sealing the deal.

In the height of the pandemic, Jones began pouring his resources into marketing and establishing a “luxury yacht image,” equipped with private chefs, bartenders and local musicians. 

“I’ll be honest, I didn’t know what I was getting into. I just figured it was something to pay the bills,” Jones said. “And then once this thing took off, we’re going, ‘Holy shit.’”

Now Jones is trying to assure government officials and the community that he will cover the cost of a nearly $500,000 salvage job .

On Feb. 20, Jones said he was on a family outing, spending the weekend in Honolua Bay, when his mooring line failed while attached to a mooring that’s only allowed to be used for two hours at a time.

The Nakoa, a 94-foot yacht that Jones said he brought to Hawaii in December, ended up drifting onto the reef. By the next day, the hull had been punctured, and diesel fuel spilled into the water leading into one of Maui’s most beloved marine sanctuaries . 

In the days that followed, the Hawaii Department of Land and Natural Resources announced that it was putting up $460,000 to try to haul the 120-ton yacht away. But after unsuccessful attempts and delays because of stormy weather, the yacht remained on Thursday evening.

DLNR officials said earlier this week that the salvage ship Kahi, operated by Visionary Marine, will return to Maui on Friday or Saturday. 

“We’ve been talking to the DLNR to let them know we’re not leaving them with the bill,” Jones said.

Jones said he was working with his insurance company to cover the cost. Asked to provide a copy of his coverage, he declined, citing the current investigation into the incident. He said he didn’t know the specifics of his insurance policy or how much it covered. 

“I feel his actions were extremely irresponsible,” said Maui County Council member Tamara Paltin, who has long fought to protect Honolua Bay. “I don’t think he fully understands how special a place Honolua is to so many of us and just how much aggravation he has caused our community.” 

As Jones works with attorneys, insurance agents and the state, he said he’s also determined to make amends with the Maui community and work to restore his company’s reputation. Since the incident in Honolua, he said he’s continued to run charters on his Oahu-based yacht, the Noelani, which will help him pay the debts he owes. 

But the Noelani has its own history of problems. The boat caught fire in Kewalo Basin Harbor in October, according to the Honolulu Fire Department.

Asked about the incident, Jones said the fire broke out in a guest suite, just as he was flying out of state to purchase the Nakoa. He blamed the fire on incandescent light bulbs that are common in older boats. Fortunately, he said, the Honolulu Fire Department responded and contained the fire from spreading out of the room. 

“When I first got a boat, my friends were telling me, ‘No, don’t get a boat; it’s nonstop problems,’” Jones said. “There’s constantly stuff going on.”

But mariners interviewed by Civil Beat say fires aren’t one of the nonstop problems boat owners regularly face.

“I can’t think of a reported fire incident in Maalaea Harbor in the 40 years I’ve been here,” said Michael Wildberger, a captain on Maui who’s run thousands of snorkel tours.

Catering To The Jet Set

After buying his first yacht in 2020, Jones said he quickly realized that catering to the ultra-wealthy in search of day trips on megayachts was an untapped market in Hawaii. High-end hotels were looking for luxury activities to send their clients on, Jones said.

In his marketing strategy, he made it clear: Noelani Yacht Charters wasn’t a basic fishing or snorkeling charter. His website advertises trips on Maui starting at $9,800 . 

“We cater to these guys that are flying in on their private jets,” Jones said. 

For almost two years, Jones grew his business with the Noelani, until he found an investor willing to help him acquire the Nakoa, the vessel that ran aground last month.

At first, Jones said he thought the investor would pay the transportation costs to have the Nakoa sent to Hawaii from overseas. When the investor suddenly said he wouldn’t cover that cost, Jones said he put up the money for the transport, which meant he missed out on paying almost $290,000 for the final payment he owed for the Noelani.

He was later sued for not making that payment, as well as failing to pay back $100,000 he borrowed from another person to pay for the Noelani.

Jones downplayed the lawsuits, calling them mutual agreements and “just records of the payment plans that we’ve created.”

With the Nakoa, Jones dreamed of expanding his business to allow multinight charters to Maui, where he planned to whisk clients away to snorkel trips around Molokini or head over to Hulopoe Bay on Lanai. He said he discovered Honolua Bay during trips on the Noelani, describing it as a place he couldn’t believe he could visit with a yacht of that size. 

Jones said he took his family to Honolua for a holiday weekend last month, and tied up at the mooring that’s only supposed to be used for two hours at a time. Asked if he was aware of the rule, Jones said was never informed of it by the Coast Guard or DLNR but had been “getting flak from day one” from Maui tour companies in the bay. 

“When you have the same company coming in, they’re switching boats every two hours,” he said. “What’s the difference of that versus us just staying there?”

It’s not the only law that community members have complained about Noelani Yacht Charters allegedly violating.

A month before the Nakoa ran aground, Tina Wildberger, South Maui’s former state lawmaker, wrote to DLNR about a dinghy shuttling passengers between the yacht and Kihei Boat Ramp, which she said isn’t allowed without a permit.

“There’s some serious high end pirate action happening here with these yachts,” Wildberger said in her January email to DLNR. “Does this vessel have a special permit to pick up passengers at Kihei Boat Ramp today?”

The next day, Wildberger got her answer: The boat didn’t have a special permit. 

Jones said he often stopped at Kihei Boat Ramp to make crew runs, including going to Ace Hardware. He denied picking up passengers though. He said that he doesn’t have a commercial permit for the Nakoa, but that he operates his business in a way that allows him to get around that. 

“That’s a whole other gray area,” Jones said.

His first boat, the Noelani, has a commercial permit. But Jones said he ran the Nakoa with a workaround called “bareboat charters.” That means that he rents the boat out to people without providing any crew. Instead, he can suggest when they rent the boat that the clients hire the crew that he’s vetted ahead of time. It’s a business model that’s popular among yacht rental businesses.

For now, Jones said he’ll keep running tours on the Noelani out of Oahu while charting his next steps. He’s hoping to find a replacement for the Nakoa and continue his expansion to Maui — if residents will have him.

“I’m hoping that we can meet everybody personally, to apologize to them face to face — let them know that and show them that I am local,” Jones said. “I think once we talk, they’ll realize I’m just like them.”

Civil Beat’s coverage of Maui County is supported in part by grants from the Nuestro Futuro Foundation and the Fred Baldwin Memorial Foundation.

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Luxury Yacht Grounded in Maui Will Cost Owner $460K for Salvage

(HONOLUA BAY, MAUI) – Work to remove fuel, other pollutants, and batteries from the grounded 94-foot-long luxury yacht  Nakoa , continues at Honolua Bay in northwest Maui.

The DLNR Division of Conservation and Resources Enforcement (DOCARE), the U.S. Coast Guard (USCG), and Maui Police Dept. will maintain the closure of the L?poa Point dirt road tomorrow for continued helicopter operations. The road is expected to reopen as soon as the defueling process is completed.

USCG federalized the vessel, meaning it has jurisdiction over the yacht which cannot be moved until all potentially dangerous materials on board are removed. As soon as the process to remove fuel, hazardous materials and batteries is complete, the USCG will turn over control of the vessel to DLNR.

DLNR will take control of the vessel because the yacht owner informed DLNR that they are unable to contract and pay for the removal of the vessel. In preparation to take control of the vessel, the DLNR Division of Boating and Ocean Recreation (DOBOR) requested bids from experienced large vessel salvage companies. This afternoon, DOBOR selected the contractor with the lowest price and that could start work the soonest.

Visionary Marine of Honolulu will commence salvage operations when the USCG releases the boat. The State will bill the yacht’s owner for reimbursement of the $460,000 salvage cost, and for additional staff and administrative costs, and take legal action if necessary.

After completing its investigation, DLNR may impose fines for any violations, and also seeks to work with the community to heal and restore the coral and bay and deter any recurrence.

“The grounding at Honolua Bay and harm to the reef that it caused is felt deeply by those connected to the special area of Honolua,  Mokul?‘ia, and L?poa ,” said DLNR Chairperson Dawn Chang. “DLNR’s duty is to conserve the natural and cultural resources of Hawai?i, so when the owner of a grounded vessel refuses to pay for removal, and the vessel poses a continued risk to natural and cultural resources, we must step up and contract for the removal ourselves. Our natural and cultural resources come first.”

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Maui businessman sued for $2M after grounding luxury yacht

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WAILUKU, Hawaii (AP) — A business owner whose luxury yacht ran aground and leaked diesel fuel into waters off the Hawaiian island of Maui last month is being sued for more than $2 million in damages by a trust that sold him the vessel.

The lawsuit filed in U.S. District Court in Honolulu on Monday seeks at least $1.45 million for the loss of the yacht, which was supposed to be paid off over the course of 15 years, The Maui News reported . It also seeks at least $500,000 for salvage work and at least $500,000 for environmental damages.

Kevin and Kimberly Albert, trustees of the Albert Revocable Trust in New Mexico, filed the lawsuit against Jim Jones, his company Noelani Yacht Charters and the ship captain. It says Jones and his company used the vessel “in a grossly negligent manner” for a personal trip without seeking the approval of the trust.

The 94-foot yacht Nakoa ran aground in Honolua Bay on Feb. 20 after its mooring line snapped. Private contractors towed the ship out to sea, where it sank in about 800 feet (244 meters) of water on March 5.

The state Department of Land and Natural Resources plans to bill Jones for the $460,000 cost of salvaging the boat. It’s also considering fines after the episode damaged coral reef.

The lawsuit says Jones notified the trust after the grounding that he had taken the yacht out for personal use.

It says Jones and Noelani Yacht Charters breached a purchase agreement holding the buyer responsible for any risk of loss or damage. The agreement also outlined operations, crew requirements and restricted uses.

A phone message left for Jones at Noelani Yacht Charters was not immediately returned. The company’s website says it’s no longer in business.

The company told The Maui News in February that “this was a family retreat with an unfortunate ending.”

Friday, June 21, 2024 81° Today's Paper

Luxury yacht runs aground in Honolua Bay on Maui

By Jack Truesdale

Feb. 20, 2023

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A 97-foot yacht ran aground in Honolua Bay on Maui on Monday morning.

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A 94-foot Sunseeker luxury yacht ran aground in Honolua Bay on Maui Monday morning after its mooring line snapped, sparking outrage on social media over the boat’s potential damage to the marine environment.

Videos posted to social media showed the vessel, named the Nakoa, stuck on the rocks in front of where some surfers paddle out to the world-famous right-hand point break. It came to rest about 700 feet out­- side of the state Honolua-­Mokuleia Bay Marine Life Conservation District at the part of the reef surfers call the Point.

“Such a bummer,” big-wave surfer Kai Lenny commented on one Instagram post.

“They need to be held responsible for every inch of reef,” wrote another user. “I hope they receive millions in fines by the looks of the yacht that they have.”

The vessel is one of two luxury yachts owned by Noelani Yacht Charters. With a top speed of 32 knots, the Nakoa has four bedrooms, five bathrooms and a full kitchen. Charter packages start at $9,801, according to the company’s website.

“While she’s well suited for day trips around any of Hawaii’s major islands, she’s more perfectly suited for unforgettable multi-day luxury experiences for guests who demand only the best,” the website states.

Reached by phone, Jim Jones, owner of Noelani Yacht Charters, said, “The boat’s in great shape,” although some “stabilizer fins” broke off. Asked whether fuel was leaking from it as some Instagram users noted, he said, “There’s no leak at all.”

Jones was on a family outing when the mooring line snapped around 5:30 a.m., and the boat drifted onto the reef around 6 a.m., he said. “The wind came up strong this morning,” he said. Jones hoped the rising tide would lift it off the reef by 4 p.m. Monday, he said.

By 4:25 p.m. the boat could not be removed, according to Department of Land and Natural Resources spokesperson Dan Dennison. The Coast Guard was still on the scene Monday afternoon, he said. There was no leak of fuel or hazardous materials, he said.

DLNR’s Division of Aquatic Resources received a report at 6:30 a.m. that the boat had run aground, Dennison said. It was unknown whether the anchor or keel had been dropped, he said.

Crews were scheduled to return at 3 a.m. Tuesday to try to remove the boat at the next highest tide around 5 a.m., Dennison said.

DLNR’s Division of Boating and Ocean Recreation is checking the owner’s insurance, Dennison said. “If covered, recovery is the owner’s responsibility,” he said. “The full circumstances of this grounding are not known at this time, and the DLNR divisions will be following up appropriately,” he said.

Community members expressed their concern over the boat’s damage to the marine environment.

“The community is super concerned if another swell comes if the boat breaks apart in the lineup,” said Tamara Paltin, a Maui County Council member representing West Maui and volunteer president of the Save Honolua Coalition. “The Save Honolua Coalition has been trying for years to get the state to better manage the bay. The community is demanding full accountability from this company,” Paltin said.

When a crew tried to pull the boat off the reef at the 4 p.m. high tide Monday, “it wasn’t even budging,” Paltin said. “They might have one more chance tomorrow morning,” she said, when the tide is higher.

“What happened at Honolua Bay is an environmental disaster,” Tiare Lawrence, a board member of the community group Ka Malu o Kahalawai, wrote in a text. “In these situations, commercial and mooring permits should automatically be rescinded,” Lawrence wrote.

Day-use moorings have a limit of two hours, Dennison added. Buoys of this kind are intended to prevent boats from damaging the reef with their anchors, according to the Malama Kai Foundation.

Jones, who owns the Nakoa, says he spent the night in the boat moored to the day-use buoy. “We were unaware that that was not allowed,” Jones said.

“I get the locals are upset,” Jones said. “This is not intentional, and we apologize for being in this prime surf spot. We’re just trying to get off the rocks.”

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Second attempt made to collect fines from owners of super yacht that grounded in Honolua Bay

Jan 29, 2024 3 min read.

The Maui News

HONOLULU — Last July, the Board of Land and Natural Resources (BLNR) reached a tentative settlement agreement with the owners of a luxury yacht, the Nakoa, for $117,471.97 for damage to stony coral and live rock when the yacht grounded outside the Honolua-Mokulē’ia Bay Marine Life Conservation District on Maui in February 2023.

The yacht’s owners, identified as Jim Jones, Noelani Yacht Charters, LLC, Kevin and Kimberly Albert, and the Albert Revocable Trust, have not paid any of the settlement amount. Today, the DLNR Division of Aquatic Resources (DAR) brought the matter back to the BLNR at its regular meeting.

After hearing from numerous community members in person and virtually, the BLNR agreed to defer the matter until after the DLNR holds a community meeting in West Maui.

The DAR submittal notes, “The Nakoa grounding incident caused considerable angst and emotional distress to the public, especially to residents of northwest Maui. The DLNR does not have a tool to obtain a monetary value for emotional distress and cultural damage to the public, but DAR acknowledges the volumes of public testimony received at the July 2023 meeting regarding their emotional distress and cultural damage. Therefore, the DLNR leaves the decision to levy additional appropriate fines against the responsible parties to the Board in its discretion.”

At the conclusion of last July’s meeting, the Alberts and their trust reached a tentative agreement with the BLNR in which they would agree to pay the settlement amount for damage to natural resources, the restoration of natural resources, and the cost of the DLNR investigation. In return, the BLNR agreed to release them from any and all liability from current and future claims by the State, deriving from the February 20, 2023, Nakoa grounding incident. The BLNR reserved its right to assess fines and penalties against Jim Jones and Noelani Yacht Charters at a later date.

According to the DAR submittal, “Nearly six months have passed since the July 28, 2023, Board meeting and, despite numerous requests to the Alberts to finalize and pay the settlement amount, the settlement has not materialized.” The new submittal included all the owners.

The Nakoa broke loose from its mooring, was adrift, and ultimately grounded on the rocky shoreline between Honolua Bay and Līpoa Point. It took weeks to prepare the boat for removal and to conduct salvage operations. A salvage team determined the vessel was not salvageable and it was scuttled in 800-feet of water off Maui’s west coast, where it remains.

DAR conducted two natural resources damage assessments and found that 1,640.5 square meters of live rock were damaged and at least 119 living coral colonies were damaged or destroyed. Hawai’i Administrative Rules (HAR) lay out a fine schedule for each specimen damaged or destroyed in a boat grounding, though the BLNR has broad discretion in assessing fines.

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Luxury yacht owner denied insurance coverage to remove grounded boat from Maui’s Honolua Bay

HONOLULU (HawaiiNewsNow) - The state’s efforts to recover $460,000 in expenses for the removal of a grounded luxury yacht at Maui’s Honolua Bay have hit a snag as the owner’s insurance company has denied coverage.

Jim Jones, the owner of the yacht Nakoa, confirmed in federal court that the insurance company denied coverage and that he has hired a bankruptcy attorney.

This leaves the state uncertain about who will pay for salvage and reef repairs.

Jones is representing himself in a lawsuit filed by his investors, who are seeking more than $2 million in damages, alleging that he violated his contract when the yacht ran aground in February.

Jones has denied any negligence.

The Nakoa, which had been used for luxury charters, was removed from the reef in March after being stuck for more than a month. The grounding caused significant damage to the reef , and experts say it will take years to recover fully.

PREVIOUS COVERAGE:

• Suit alleges ‘gross negligence’ in Maui yacht grounding that damaged reef
• DLNR: Grounded yacht scuttled at sea after being ‘successfully’ freed at Honolua Bay
• Salvage work continues for grounded yacht at Honolua Bay; owner faces hefty fines
• DLNR: Crews successfully defuel luxury yacht grounded at Honolua Bay
• Cleanup efforts underway after grounded luxury yacht leaked fuel into Maui bay
• Maui officials: Luxury yacht that ran aground near marine sanctuary leaked fuel into bay

Copyright 2023 Hawaii News Now. All rights reserved.

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As Seen on Sunrise

120-ton yacht remains grounded on Maui

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Courtesy of the state Department of Land and Natural Resources

The luxury yacht Nakoa sits on the reef on Maui on Sunday after it broke its moorings last week and drifted.

The salvage ship, Kahi, back, was able to move the luxury yacht Nakoa, foreground, 10 to 20 feet further from shore on Sunday on Maui. The salvage teams returned on Monday to continue their efforts.

HONOLUA BAY, Maui — The state is still working to free a 120-ton super yacht from the corals and reefs of Honolua Bay in northwest Maui, more than a week after its owner accidentally landed the vessel on the shoreline.

On Feb. 20, Jim Jones, who owns Noelani Yacht Charters, grounded the Nakoa just beyond the boundary of the Honolua-Mokule‘ia Marine Life Conservation District in a blunder that has quickly made him infamous throughout the state.

In a Feb. 27 press release, the state Department of Land and Natural Resources stated that its hired contractor, Visionary Marine LLC, made more than a dozen attempts on Feb. 26 to pull the yacht off the shoreline using its salvage ship, the Kahi.

After rigging the Nakoa with various ropes and straps, the Kahi was only able to move the yacht about 10 to 20 feet before the “rigging lines on the Nakoa broke during the final pull.” At the time of the release on Feb. 27, the salvage crew had returned to continue their efforts, and was re-rigging the vessel with a stronger set of lines.

The DLNR also stated that a tractor tug, the Mary Catherine, operated by Sause Bros. Inc., was en route to Maui from Honolulu to provide additional assistance.

“Once on scene, it will join the Kahi in further attempts to pull the grounded yacht into deeper water,” the department said.

The DLNR estimated the yacht would need to be pulled another 20 to 30 feet before being freed.

The press release, which was issued close to 2 p.m., added that the salvage teams would wait until “higher tide conditions later today, before making additional attempts.”

The yacht has been de-fueled since Feb. 25, when all fuel and other hazardous materials were removed from the vessel. An unspecified amount of diesel fuel had leaked from the boat’s hull into the surrounding water, according to an earlier press release.

The DLNR said it had to take control of the yacht late last week, after Jones told the department he was unable to pay for the removal of his vessel.

“Since the yacht’s owner declined to pay for the $460,000 for retrieval of his boat, the DLNR Division of Boating and Ocean Recreation, by law, assumed control over the vessel, and will bill him.”

Jones also faces additional fines for “any violations of boating rules and regulations and for any potential damage to reef structures and live rock,” as well as additional staff and administration costs.

“All investigations are underway, and DLNR can’t comment further on pending charges or penalties.”

Jones had previously told The Garden Island that negative press was “blowing (him) away,” and that he was committed to resolving the issue and restoring the reef area.

“I live here. We’re local. It’s all about our land and our waters,” said Jones in a Feb. 22 phone interview.

“We definitely will be in contact with Maui specifically, all the environmental organizations, doing whatever we possibly can on our part to help them out,” he added.

Jones was unable to be reached for comment on reports that he was now unwilling to pay for the damage.

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Maui businessman, captain sued for $2M after grounding luxury yacht

A business owner whose luxury yacht ran aground and leaked diesel fuel into waters off Maui last month is being sued for more than $2 million in damages by a trust that sold him the vessel.

The lawsuit filed in U.S. District Court in Honolulu on Monday seeks at least $1.45 million for the loss of the yacht, which was supposed to be paid off over the course of 15 years. It also seeks at least $500,000 for salvage work and at least $500,000 for environmental damages.

Kevin and Kimberly Albert, trustees of the Albert Revocable Trust in New Mexico, filed the lawsuit against Jim Jones, his company Noelani Yacht Charters, and ship captain Kimberley Kalalani Higa.

The lawsuit says the only approved captain on the insurance policy was Joe Bardouche. Both have a 100 T U.S. Coast Guard license.

The lawsuit says Jones and his company used the vessel “in a grossly negligent manner” for a personal trip without seeking the approval of the trust.

The 94-foot yacht Nakoa ran aground in Honolua Bay on Feb. 20 after its mooring line snapped. Private contractors towed the ship out to sea, where it sank in about 800 feet (244 meters) of water on March 5.

The state Department of Land and Natural Resources plans to bill Jones for the $460,000 cost of salvaging the boat. It's also considering fines after the episode damaged coral reef.

The lawsuit says Jones notified the trust after the grounding that he had taken the yacht out for personal use.

It says Jones and Noelani Yacht Charters breached a purchase agreement holding the buyer responsible for any risk of loss or damage. The agreement also outlined operations, crew requirements and restricted uses.

A phone message left for Jones at Noelani Yacht Charters was not immediately returned. The company's website says it's no longer in business.

The company told The Maui News in February that “this was a family retreat with an unfortunate ending.”