Homm, Joseph McAdams of Hot Springs and Richard Smyth of Amelia Island, Fla.
The defendants used false and misleading financial reports that hid more than $30 million in losses and glorified financial forecasts to induce further investment including investments by Homm and McAdams," according to the lawsuit filed in May by the investors.
In October 2001, Lahaina appointed Homm, an award-winning fund manager, entrepreneur and capital markets expert, to its board of directors.
re-financing boom," Homm said in a 2001 news release.
As the company was about to hemorrhage, UCAP's executives asked Homm for more cash.
The investors also said that UCAP executives didn't tell Homm about the concerns accounting firm Rickey May had about the company.
Moudy said Homm had full knowledge of the financial risk and voluntarily handed over the money in exchange for the ultimate ownership of the company.
On April 13, 2004, Homm sent another message to Moudy seeking a complete restructuring.
Homm was Managing Partner in the European division of Tweedy Browne, one of the oldest and most successful value managers.
Homm will focus on raising the company's standing among investors while providing corporate finance advice and strategy.
commented, "Florian Homm brings capital market know-how, visibility, and credibility to our board.
Homm explains, "Lahaina is a direct beneficiary of lower interest rates and the associated US re-financing boom.