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TheBuzz

Giving away a cottage to finance a castle

By Erika Engle

POSTED: 01:30 a.m. HST, Dec 03, 2008

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A Big Island couple is going to give away a house, using an essay contest that is open worldwide, via the Internet.

On the Net:

» castleinhawaii.com

» winhawaiianhome.com

All essay entries must be written in English, however.

Sheri Smith and her husband, John Williams of Puna, are giving away what they call their "Sweetheart Cottage," a 1,300 square-foot home they say has never been lived in.

The contest Web site describes the home as "nestled in an enchanted forest with singing frogs."

As in, coqui frogs. Well, the winner might get used to them.

Williams, a builder who owns the trade name Castle Enterprises, built the house to sell, to use the proceeds to finish The Castle, a yet-to-open bed and breakfast on the Puna coastline between Kaimu and Kalani Honua, Smith said.

"That's exactly when the market took a dive," so they came with the contest.

"Essay 101," has an entry fee of $101 which sent up red flags in your columnist's head as potentially illegal.

The Hawaii County Police Department took interest, conferring with the Hawaii County Prosecutor's Office following inquiries from TheBuzz.

Generally "the law is that any game of chance that people are required to pay money to participate in is illegal gambling," said Deputy Prosecutor Rick Damerville.

Contests by companies specify "no purchase necessary," for instance.

"If it's a game of skill, it's a bit different," he said.

The contest Web site calls "Essay 101" a game of skill.

"From what I'm hearing, they're saying you have to win an essay contest, so maybe it's a game of skill, maybe it's not, it just requires additional investigation to find out," Damerville said.

It has been forwarded to the state Attorney General's office, which could assign the matter to its Investigations Division. If it goes further, it could be prosecuted by the Criminal Justice Division, but Damerville added, "it is way too early to say anything about whether or not it's legal or illegal because there hasn't been any investigation."

Smith is represented by Hilo attorney Henry Nakamoto "and I had him research it thoroughly," she said. "Everything is kosher."

The contest started Monday and ends May 1. Smith and Williams hope to receive 6,000 entries. That adds up to $606,000.

"No matter what, we're going to give thirty grand to the schools" in the Puna District, Smith said.

She has contacted state Department of Education officials to seek judges.

In the meantime, others have contacted her about disposing of their homes in a similar way. Smith has registered the trade name Habitat for Hawaii as a nonprofit entity that will explore a home raffle, also using essays as entries.

Erika Engle is a reporter with the Star-Bulletin. Reach her by e-mail at erika@starbulletin.com

A Big Island couple is going to give away a house, using an essay contest that is open worldwide, via the Internet.

On the Net:

» castleinhawaii.com

» winhawaiianhome.com

All essay entries must be written in English, however.

Sheri Smith and her husband, John Williams of Puna, are giving away what they call their "Sweetheart Cottage," a 1,300 square-foot home they say has never been lived in.

The contest Web site describes the home as "nestled in an enchanted forest with singing frogs."

As in, coqui frogs. Well, the winner might get used to them.

Williams, a builder who owns the trade name Castle Enterprises, built the house to sell, to use the proceeds to finish The Castle, a yet-to-open bed and breakfast on the Puna coastline between Kaimu and Kalani Honua, Smith said.

"That's exactly when the market took a dive," so they came with the contest.

"Essay 101," has an entry fee of $101 which sent up red flags in your columnist's head as potentially illegal.

The Hawaii County Police Department took interest, conferring with the Hawaii County Prosecutor's Office following inquiries from TheBuzz.

Generally "the law is that any game of chance that people are required to pay money to participate in is illegal gambling," said Deputy Prosecutor Rick Damerville.

Contests by companies specify "no purchase necessary," for instance.

"If it's a game of skill, it's a bit different," he said.

The contest Web site calls "Essay 101" a game of skill.

"From what I'm hearing, they're saying you have to win an essay contest, so maybe it's a game of skill, maybe it's not, it just requires additional investigation to find out," Damerville said.

It has been forwarded to the state Attorney General's office, which could assign the matter to its Investigations Division. If it goes further, it could be prosecuted by the Criminal Justice Division, but Damerville added, "it is way too early to say anything about whether or not it's legal or illegal because there hasn't been any investigation."

Smith is represented by Hilo attorney Henry Nakamoto "and I had him research it thoroughly," she said. "Everything is kosher."

The contest started Monday and ends May 1. Smith and Williams hope to receive 6,000 entries. That adds up to $606,000.

"No matter what, we're going to give thirty grand to the schools" in the Puna District, Smith said.

She has contacted state Department of Education officials to seek judges.

In the meantime, others have contacted her about disposing of their homes in a similar way. Smith has registered the trade name Habitat for Hawaii as a nonprofit entity that will explore a home raffle, also using essays as entries.

Erika Engle is a reporter with the Star-Bulletin. Reach her by e-mail at erika@starbulletin.com

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