Kona Grill (NDAQ: KONA) management is raking investors over the coals and they aren’t happy. Clarke Bennitt LLC was the first to uncover some questionable regulatory filings that clearly demonstrate a conflict of interest with shareholders. Now, many shareholders like Clarke Bennitt are demanding changes be made in order to restore confidence in the company, according to a Schedule 13D filing with the SEC.

A recent 8-K filing made with the SEC on December 29, 2008 was a shocking read to the shareholder. In the regulatory filing Marcus Jundt, chief executive of Kona Grill, quietly disclosed a large stock sale to his father at the ridiculously low price of $1.19 per share. Incredibly, this sale accounted for nearly 5% of the company’s outstanding shares!

Clarke Bennitt was also surprised by a Schedule 13D filing made by the second largest shareholder in the company. Mill Road Capital noted its opposition to a loan that violated the Sarbanes-Oxley amendments to the Act of 1943 prohibiting the company from directly or indirectly arranging loans to management. Further, the proposal wasn’t even part of a competitive bidding process.

It has become clear to these two shareholders that the Kona Grill is not operating in their best interest. Not only is it against the law to make personal loans to management, but the proceeds ended up coming from an under-market sale to an executive’s father for just $1.19 per share. The proposal hurts shareholders in two ways and they demanded it be rescinded immediately to ensure that a fair price is being achieved for both Kona Grill and its shareholders.

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Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) shares may be living up to their stock symbol after Sam Zell’s Equity Group Investments signed a confidentiality agreement with the hotel chain. Zell already owns approximately 8 percent of the firm, but the agreement could signal the famous investor’s appetite for boosting his stake in the firm. The move may also prove to be bullish for the hotel sector as any confidence in Starwood may also mean confidence in a larger recovery in the sector.

Sam Zell made his fortune in the real estate business by setting up Equity Group Investments, which spawned three public companies, including Equity Residential, the largest apartment owner in the United States, Equity Office Properties, the largest office owner in the country, and Manufactured Home Communities, a mobile home company. These were among the first public REITs and took advantage of shareholder money to buy up properties when debt wasn’t available due to terrible market conditions.

Sam Zell has lost at least a bit of his cache, however, with his acquisition of Tribune Company. The real estate billionaire’s entry into the media business turned out to be ill-timed with the news agency now suffering under $13 billion in debt that was used to take it private in 2007. Eventually, this led to the firm’s Chapter 11 bankruptcy earlier last month – or late last year. However, these events do not mean that Sam Zell has lost any of his ability to predict the real estate market through his investments!

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Kingsway Financial Services Inc. (NYSE: KFS) shares surged higher after an activist shareholder threatened to take action to unlock value. The Stilwell Group, which owns a 9 percent stake in the firm, demanded that the company institute aggressive cost-cutting measures and focus on its core business in a Schedule 13D filing with the SEC. If not, the hedge fund vowed to seek board representation during the next annual meeting scheduled for February 10th of next year.

“If a majority of owners of Kingsway support our nominees on February 10th, we pledge to work aggressively to reduce expenses, to exit non-core lines, and to reduce balance sheet risk,” said managing member Joseph Stilwell. “Further, if we win, I commit to hold our 9 percent stake for at least the next three years.”

Kingsway has acted by selling non-core businesses and getting out of unprofitable insurance lines as well as cut 162 jobs and freeze salaries to lower costs. However, the firm still reported a net loss of $17.4 million, or 32 cents per share, in the third quarter. As a result, Stilwell recommends that shareholders vote to remove CEO Shaun Jackson and Michael Walsh and replace them with his own slate of directors. The result could be a much improved bottom line and higher profits for shareholders.

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