District of Hawaii
Press releases recorded for this federal judicial district.
Multiple Arrests Follow from Indictment of 37 on Drug ChargesRead the Press Release
HONOLULU -- The Federal Bureau of Investigation, Homeland Security Investigations, and the Honolulu Police Department today arrested 22 defendants named in six indictments returned by a federal grand jury on November 30, 2016, and December 7, 2016, which remained sealed until today’s arrests. The six indictments charge 37 defendants with a variety of drug trafficking offenses and three of those defendants are charged with firearm offenses. Defendants arrested in Hawaii today will have an initial appearance and arraignment before U.S. Magistrate Judge Richard L. Puglisi either today or on December 9.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the indictment alleges 105 drug trafficking offenses ranging from July 2014 to November 2016, as well as five firearm offenses. Arrested today in Hawaii were:
Eliu Afoa, age 29, a resident of Honolulu, Hawaii;
Laauli Amani, age 43, a resident of Honolulu, Hawaii;
Gilbert Enos, age 65, a resident of Honolulu, Hawaii;
Aukisitino Falaniko, age 38, a resident of Honolulu, Hawaii;
Daryl Kuresa, age 36, a resident of Aiea, Hawaii;
Duane Liupaono, age 35, a resident of Aiea, Hawaii;
Lee Lopez, age 44, a resident of Kaneohe, Hawaii;
Dorani Luavai, age 22, a resident of Honolulu, Hawaii;
Dorothy Lupe, age 38, a resident of Mililani, Hawaii;
Robert Paga, age 41, a resident of Honolulu, Hawaii.
Faaalo Salavea, age 42, a resident of Ewa Beach, Hawaii;
Piliopo Salavea, age 45, a resident of Ewa Beach, Hawaii;
Eldean Tacuban, age 46, a resident of Kaneohe, Hawaii;
Kilisi Toliniu, age 35, a resident of Honolulu, Hawaii;
Papa Tupua, age 58, a resident of Honolulu, Hawaii;
Alesana Vaimasanuu, age 38, a resident of Honolulu, Hawaii;
Roger Whitmarsh, age 39, a resident of Honolulu, Hawaii; and
Rodney Wong, age 49, a resident of Honolulu, Hawaii.
Arrested today in California were:
Kpel Hollins, age 34, a resident of Waipahu, Hawaii;
Jeremiah Ieremia, age 26, a resident of San Francisco, California;
Jeremiah Matau, age 34, a resident of Antioch, California; and
Faanimo Paopao, age 25, a resident of San Francisco, California.
The following individuals were previously arrested in connection with the overarching investigation in this case and are currently in federal custody:
James Abalos, age 38, a resident of Honolulu;
Jessie Momosea, age 31, a resident of Honolulu;
Theresa Tuua-Montgomery, age 45, a resident of Honolulu;
Victor Daniels, age 48, a resident of Honolulu; and
Villiami Tapuketau Naufahu, age 26, a resident of San Mateo, California.
The following individuals were charged but are currently in State of Hawaii custody:
Lelauti Sakaria, age 35, a resident of Honolulu, Hawaii; and
June Gibson, age 43, a resident of Honolulu, Hawaii
If convicted of the most serious drug charges in the indictment (violations of 21 USC 841(b)(1)(A)), defendants face up to a maximum of life in prison, with mandatory minimum prison terms of ten years. Other charges (violations of 21 USC 841(b)(1)(B)) have maximum terms of 40 years in prison, with mandatory minimum prison terms of five years, while the least serious drug offenses (violations of 21 USC 841(b)(1)(C)) have maximum prison terms of 20 years. The three firearm offenses alleging possession of firearms and/or ammunition during and in relation to a drug trafficking crime carry a mandatory five-year prison term consecutive to the sentence for the drug trafficking crime. The two firearm offenses alleging the defendant to be a felon in possession of firearms and/or ammunition carry a maximum term of imprisonment of ten years. The charges in the indictment are merely accusations, and the defendants are presumed innocent until proven guilty.
The arrest and charges resulted from a joint investigation conducted by the Federal Bureau of Investigation, Homeland Security Investigations, and the Honolulu Police Department. The case is being prosecuted by Assistant U.S. Attorneys Tony R. Roberts and Marion Percell.
Hawaii Couple Sentenced for Tax Violations Resulting in Non-Payment of over $4 Million in TaxesRead the Press Release
HONOLULU -- United States District Judge Derrick K. Watson yesterday sentenced Calvin Kim, 55, and Chun Cha Kim, 64, husband and wife to 36 and 12 months in prison, respectively, for violations of federal tax laws. Calvin Kim pleaded guilty to conspiring to defraud the United States by dishonest and deceitful means for the purpose of impeding, impairing, obstructing, and defeating the lawful functions of the IRS in the assessment and collection of federal income taxes, while Chun Cha Kim pleaded guilty to willfully failing to pay taxes for the years 1999-2012.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Judge Watson also ordered Calvin Kim and Chun Cha Kim to pay restitution in the amounts of $1,969,463 and $1,937,267, respectively, which represent all back taxes and penalties. Criminal fines of $250,000 and $100,000 were also imposed on Calvin Kim and Chun Cha Kim, respectively. In addition, both defendants agreed to the imposition of a fraud assessment by the IRS, which may amount to an additional civil penalty of $3 million. According to information produced to the court, the Kims already have paid more than $4 million in back taxes and interest.
According to documents filed with the court, Mr. and Mrs. Kim operated two companies which sold heating pads and other products. In October 2000, they became followers of so-called "tax protestors" and decided not to file a valid tax return from then till May 2014. The court documents reflect that from 2005 to 2012 alone, the tax returns of the Kims’ businesses, of which they were then the sole shareholders, showed payments ranging from $418,238 to $971,983 for Calvin Kim for each year, and $271,564 to $1,000,562 for Chun Cha Kim, resulting in taxes owed for each of those years ranging from $133,009 to $325,375 for him and $83,828 to $335,378 for her.
The case was investigated by the Internal Revenue Service - Criminal Investigation. The prosecution has been handled by Assistant U.S. Attorney Marshall Silverberg.
$1.3 Million in Forfeiture Funds Delivered to HPDRead the Press Release
HONOLULU -- United States Attorney Florence T. Nakakuni (third from left in attached photo), Homeland Security Investigations Special Agent-in-Charge Joanna K. Ip (second from left), United States Marshal Gervin K. Miyamoto (fourth from left), Federal Bureau of Investigation Assistant Special Agent-in-Charge Tuan M. Nguyen (third from right) and Internal Revenue Service Supervisory Special Agent David Meisenheimer (second from right) today delivered a $1,310,469.86 check to Chief Louis M. Kealoha and Vice Division Lt. Phillip Johnson (far left) of the Honolulu Police Department (HPD), as a portion of the funds equitably shared with HPD, resulting from forfeited assets. The payment was part of a total of over $2.8 million the Department of Justice delivered to HPD from forfeitures in the investigation and prosecution of an internet gambling operation which also committed money laundering and tax violations.
United States Attorney Nakakuni said that starting in 2009, the Federal Bureau of Investigation, the Internal Revenue Service, Homeland Security Investigations and the Honolulu Police Department conducted a joint undercover investigation into a large-scale internet gambling operation. According to information produced in court, the investigation revealed that, between 2005 and 2012, the illegal operation, established by Allen Yamada and led by Felix Tom, placed gross wagers totaling over approximately $670 million through internet websites based in Costa Rica.
U.S. Attorney Nakakuni said that according to law enforcement investigations, in the last several years, dozens of internet bookmakers have come into existence, many of whom are located in foreign countries where bookmaking activities are not illegal. These bookmakers direct their activities toward bettors in the United States, who are interested in gambling on American sporting events such as baseball, football, and basketball.
The prosecution identified in excess of 20 agents located primarily on Oahu. The investigation also revealed that many agents also recruited sub-agents (lower-level bookies or runners), who also had their own client base. A total of 26 defendants, including Yamada and Tom, pled guilty to gambling, tax, and/or money laundering offenses. The case was prosecuted by Assistant U.S. Attorney Larry L. Butrick (far right in photo).
U.S. Attorney Appoints Election OfficerRead the Press Release
HONOLULU -- United States Attorney Florence T. Nakakuni announced today that Assistant United States Attorney (AUSA) Michael Nammar will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Nammar has been appointed to serve as the District Election Officer (DEO) for the District of Hawaii, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Nakakuni said, "Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Nakakuni stated that AUSA/DEO Nammar will be on duty in this District while the polls are open (7:00 a.m. to 6:00 p.m.). He can be reached by the public at the following telephone number: (808) 541-2850.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (808) 566-4300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Nakakuni said, "Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division."
North Carolina Man Pleads Guilty to Defrauding University of HawaiiRead the Press Release
HONOLULU – Marc Hubbard, age 48, of Charlotte, North Carolina, pled guilty today in federal court to one count of wire fraud, for defrauding the University of Hawaii and one of its supporters of $250,000 in relation to a concert involving the recording artist Stevie Wonder that never took place. According to court documents, the fraudulent scheme ran from in or about March 2012 through on or about October 3, 2012.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that, according to information presented in court, Hubbard engaged in a scheme to defraud involving the solicitation of money through various false representations. Hubbard falsely represented that he was in contact with Stevie Wonder’s management, when in fact he had not actually contacted anyone affiliated with Stevie Wonder who was in a position to book Stevie Wonder for the University of Hawaii concert, and that he would provide the funds that he received to Stevie Wonder. In court proceedings, Hubbard admitted he kept money for himself, rather than providing it to Stevie Wonder or his management and that he personally obtained $147,500.
Hubbard will be sentenced on February 16, 2017, by United States District Judge Leslie E. Kobayashi, and will face a maximum penalty of 20 years imprisonment. Hubbard will also be ordered to pay restitution to the victims of his wire fraud scheme and has admitted that he owes $200,000 to the University of Hawaii and $50,000 to its supporter.
The case was investigated by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Marc A. Wallenstein.
Mililani Businesswoman Pleads Guilty to Filing False Tax ReturnRead the Press Release
HONOLULU – Amalia Ralar, age 43, of Mililani, Hawaii, doing business as Muscle Inc., pleaded guilty in federal court on September 26 to filing a false tax return for the year 2012. At sentencing, scheduled for January 12, 2017, before Senior District Judge Helen Gillmor, Ralar faces a maximum three-year prison sentence and a fine of up to $250,000.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to court documents, Ralar filed a Form 1040 tax return for 2012 that claimed tax due and owing of only $10,872 based on $50,672 in taxable income. In fact, Ralar’s actual income for 2012 was $380,364, which would have resulted in tax of $112,703. As a result, Ralar under-reported her tax for 2012 by $101,831.
Moreover, according to information produced to the court, Ralar agreed that the tax returns she filed for the years 2007, 2008, 2009, 2010, 2011, 2013, and 2014 were also not true and accurate returns. Ralar excluded income from her business operations, resulting in total unpaid tax from 2007 to 2014 of $354,511. Ralar stipulated that she owes that amount in restitution to the IRS. While Ralar’s guilty plea is specifically for the 2012 tax year, her sentencing will be based on the aggregate amount of the loss from all of the years she filed false returns.
The Internal Revenue Service Criminal Investigation Division (IRS CI) led the investigation. The prosecution was handled by Assistant U.S. Attorneys Ken Sorenson and Larry Tong.
Honolulu Man Pleads Guilty to Identity Theft and Admits to Fraudulent Tax Return SchemeRead the Press Release
Richard Lee Derrick, Jr., 52, of Honolulu, pled guilty today in federal court to one count of aggravated identity theft. Derrick will face a mandatory term of imprisonment of two years, a fine of up to $250,000, and restitution when he is sentenced on January 10, 2017, by United States District Judge Derrick K. Watson.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, stated that, according to documents filed with the court, Derrick engaged in a scheme by which he filed numerous fraudulent federal and state income tax returns using the personal information of others. During court proceedings, Derrick admitted to filing one such fraudulent federal tax return using his deceased wife’s social security number on February 20, 2014. As part of the plea agreement, Derrick pled guilty to the identity theft offense but also agreed that he was responsible for fraudulently obtaining $241,897.60 in refunds from the State of Hawaii. Derrick agreed to pay restitution in that amount to the State of Hawaii Department of Taxation.
The case was investigated by the Internal Revenue Service - Criminal Investigation, the Social Security Administration Office of Inspector General, and the United States Postal Inspection Service, with the assistance of the State of Hawaii Department of Taxation, Criminal Investigation Section. The prosecution is being handled by Assistant U.S. Attorney Amalia Fenton.
Two Former Maui Residents Sentenced for Fraud Charges Related to Operation of $26 Million Dollar Ponzi SchemeRead the Press Release
HONOLULU -- United States District Judge Derrick K. Watson yesterday sentenced George Lindell, 68, and Holly Hoaeae, 41, both formerly of Maui, to 210 months and 120 months imprisonment, respectively, for their involvement in operating an extensive Ponzi scheme in which 166 individuals were induced to invest over $26 million dollars. A federal jury found Lindell and Hoaeae guilty of eight counts of mail fraud and two counts of wire fraud after a 27-day trial concluding in May 2015. Lindell was also convicted of four counts of money laundering.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Judge Watson also ordered both defendants to pay restitution of $8.9 million dollars representing the net loss to investors in the case. According to evidence produced in court, Lindell and Hoaeae began an investment scheme in connection with their operation of their business "The Mortgage Store", in which they issued promissory notes promising to pay a guaranteed rate of return of seven percent. Lindell and Hoaeae, using radio ads, magazines and a weekly radio show, urged potential investors to attend their weekly workshops at "The Mortgage Store" where they taught seminars on how to "harness" or use the equity in their homes for investment purposes. Lindell and Hoaeae would then utilize their status as mortgage brokers to refinance investor residences in order to extract the equity in investor homes for the purposes of investment. Lindell and Hoaeae would then urge investors to invest money in their investment scheme, known as "The Parking Lot", where investors could "park" their money and earn guaranteed rates of interest. Lindell and Hoaeae advertised the Parking Lot as "safe" and invested largely in secure corporate bonds in Fortune 500 companies. In truth and fact, Lindell and Hoaeae were investing in "junk" bonds and/or marginal real estate investment activity and using the bulk of the funds to support their luxurious lifestyles and pay existing investors with new investor funds. During the scheme Lindell built a $3.5 million dollar residence above Lahaina in large part with investor funds and Hoaeae used hundreds of thousands of dollars in investor funds to fund her personal lifestyle including trips, automobiles and pay extensive credit card debt.
The investigation of this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Ken Sorenson and Andrea Hattan.
Police Officer Arrested on Honest Services Wire FraudRead the Press Release
HONOLULU -- Agents of the Federal Bureau of Investigation today arrested Maulia LaBarre, 34, a resident of Honolulu, and a Honolulu Police Department (HPD) officer, after a federal grand jury returned an indictment on September 14, charging him with five counts of honest services wire fraud. LaBarre will have an initial appearance and arraignment before U.S. Magistrate Judge Richard L. Puglisi on September 19.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, LaBarre breached his duty of honesty and loyalty to the citizens of the City and County of Honolulu and the HPD to act in the public’s interest and not for his own illicit enrichment. The indictment alleges that, between January and March 2016, LaBarre solicited, and agreed to accept, sex from an individual by promising to arrange to have an arresting officer not appear to testify in a pending case involving prostitution charges against that individual. LaBarre is alleged to have sent wire communications in the form of text messages for the purpose of executing his criminal scheme.
If convicted of the charges in the indictment, LaBarre faces a maximum of 20 years in prison on each count. The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty.
The arrest and charges resulted from a joint investigation conducted by the Federal Bureau of Investigation and the Investigations Division of the Department of the Attorney General for the State of Hawaii. Homeland Security Investigations also provided assistance during the joint investigation. The case is being prosecuted by Assistant U.S. Attorney Michael Nammar.
College Agrees to Pay $295,442 to Resolve Allegations of Improper Claims for Educational Benefit PaymentsRead the Press Release
HONOLULU -- Remington Colleges, Inc., an Arkansas non-profit corporation doing business as Remington College – Honolulu Campus ("Remington College"), will pay $295,442.00 to settle certain civil claims under the federal False Claims Act in an agreement signed on July 25, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the United States had alleged that Remington College submitted false statements and false claims to obtain educational benefit payments from the United States Department of Veterans Affairs ("VA"). Between January 2010 and May 2011, Remington College submitted six false statements and claims in which it certified to the VA that five VA beneficiaries were enrolled as students in Massage Therapy, a VA-approved program, when in fact, the five VA beneficiaries were enrolled in Cosmetology, an unapproved program. While Remington College agreed to the settlement, it did not admit that the allegations were correct.
U.S. Attorney Nakakuni noted that under the federal False Claims Act, the United States can seek up to triple damages, plus penalties, for false and fraudulent claims for payment that are submitted to the federal government. She stated: "We will work tirelessly with our law enforcement partners in the VA’s Office of Inspector General ("VA-OIG") and the Federal Bureau of Investigation ("FBI") to combat fraud and protect the taxpayers’ money."
This civil investigation was conducted by the VA-OIG and the FBI. The case was handled by Assistant U.S. Attorney Rachel Moriyama.
Korean Company Fined $275,000 for Second Violation of the Act to Prevent Pollution from ShipsRead the Press Release
HONOLULU -- United States District Court Judge Leslie E. Kobayashi today accepted the guilty plea of Doorae Shipping Co., LTD, a South Korean maritime operations company, and sentenced the company to pay a fine of $275,000, and a term of three years of probation for the failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships.
According to the Information to which Doorae pled guilty, the operation of a marine vessel, such as the B. Pacific, a petroleum oil tank ship registered under the flag administration of the Marshall Islands, and operated by Doorae, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. U.S. law requires that the movement and transfer of oil on board a ship be accurately documented in the ship’s Oil Record Book.
Information produced to the court established that from between July 8, 2016 through July 14, 2016, during a Port State Control examination conducted by the United States Coast Guard, employees of Doorae Shipping presented the B. Pacific’s Oil Record Book to representatives of the United States Coast Guard knowing that it failed to document or acknowledge that approximately 5,400 gallons of oil contaminated bilge water had been placed into and stored in an unapproved void space neither designated nor appropriate for the storage of oil and other ship generated liquids. In addition, the Oil Record Book also failed to document the location of approximately 8,400 gallons of machinery space oil contaminated bilge water.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said "It is unacceptable for a maritime company which was convicted and sentenced to pay $950,000 in fines and penalties four months ago for violating the Act to Prevent Pollution from Ships to commit another criminal violation of the Act. This failure to properly follow the law with respect to maintaining an accurate and truthful Oil Record Book requires another conviction and sentence commensurate with Doorae’s conduct. By this prosecution and today’s sentence, we demonstrate our continuing resolve to keep our ocean environment clean, and the commercial tanker ships which port in Honolulu accountable." Doorae pled guilty and was sentenced to paying a $750,000 fine and making a $200,000 community service payment in April 2016.
"Environmental crimes are a serious threat to the health of our oceans," said Capt. Mike Long, Coast Guard Captain of the Port for Honolulu. "The Coast Guard is dedicated to enforcing all U.S. laws and international requirements to prevent marine pollution in Hawaii and all U.S. waters. This case sends a clear message that violators will be vigorously investigated and prosecuted."
The case was investigated by U.S. Coast Guard Sector Honolulu and the U.S. Coast Guard Investigative Service. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Operator of Chinatown Game Rooms Sentenced to 37 Months ImprisonmentRead the Press Release
HONOLULU - Senior United States District Court Judge Susan Oki Mollway sentenced Delvin Phuong Pham, a.k.a. "Kevin Pham," age 49, to 37 months in prison yesterday for operating illegal gambling businesses and conspiring to bribe an agent of an organization receiving federal funds. Pham’s sentence also included forfeiture of over $96,000, personal property and 14 illegal gambling machines. Pham plead guilty as charged on March 8, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that information produced to the court reflected that Pham was operating numerous illegal game rooms in the Chinatown and Kalihi neighborhoods which allowed patrons to illegally gamble through the use of slot machines, "fish" video game machines and Bacarrat card tables. According to records and information obtained during the investigation, Pham received proceeds of between $10,000 to $28,000 per week from his illegal gambling operations. In addition, Pham initiated contact and through four transactions paid over $7,200 in bribes to an HPD officer pretending to be willing to accept the money for the protection of Pham’s illegal gambling operations from law enforcement actions and for the return of illegal gambling machines previously seized during the execution of search warrants.
This case was investigated by an extensive Organized Crime Drug Enforcement Task Force investigation using a network of confidential informants and undercover police officers overseen by Homeland Security Investigations, the Internal Revenue Service and the Honolulu Police Department. Assistant United States Attorney Chris A. Thomas prosecuted the case.
Former Kauai Police Department Lieutenant Pleads Guilty to Federal Theft OffenseRead the Press Release
HONOLULU -- Karen M. Kapua, 53, formerly a lieutenant of the Kauai Police Department, pled guilty today in federal court to one count of stealing $25,000 belonging to the County of Kauai. The theft constituted a violation of federal law because the County of Kauai received federal grants of more than $10,000 annually, including grants from the United States Drug Enforcement Administration.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced to the court, Kapua admitted cashing a $25,000 check on December 5, 2014, made payable to her by the County of Kauai, and earmarked for vice section operations, and converting the money to her own use. Kapua, in her former position as lieutenant in the Kauai Police Department’s vice section, was authorized to request County of Kauai checks to obtain money to make undercover purchases of narcotics.
Kapua was originally charged in a January 2016 indictment with stealing a total of $75,000 from the County of Kauai on three separate dates between December 23, 2013 and December 5, 2014, and with laundering the proceeds of one of the theft offenses by making a $11,457.98 wire transfer to pay off her debts. As part of the plea agreement, Kapua pled guilty to only one offense but agreed that she was responsible for the theft of a total of $75,000.
Kapua will face a term of imprisonment of up to ten years, a fine of $250,000 and restitution when she is sentenced on October 31, 2016 by Chief United States District Judge J. Michael Seabright.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Kauai Police Department, and is being prosecuted by Assistant U.S. Attorney Larry Tong.
$200,000 Community Service Payment for Hawaii Reef Projects ReceivedRead the Press Release
HONOLULU -- United States Attorney Florence T. Nakakuni (center in attached picture); Rear Adm. Vincent Atkins, Commander, Fourteenth Coast Guard District (far left); Resident Agent-in-Charge Donna Kahakui of the Environmental Protection Agency’s (EPA) criminal enforcement program (second from right), and Special Agent Eric Goldberg of the Coast Guard Investigative Service (far right) delivered a $200,000 check to Scott Hall, Director of Seabird Conservation with the National Fish and Wildlife Foundation (holding check), representing the community service payment of Doorae Shipping Co., LTD, on Friday, July 1 at the U.S. Attorney’s Office. The payment was part of the sentence Doorae received after pleading guilty in April 2016 to failing to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships, and making false statements to the U.S. Coast Guard concerning the discharge of oil contaminated bilge water.
According to court documents, the operation of a marine vessel, such as the B. Sky, an oil tanker ship flagged out of Vanuatu and operated by Doorae, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be recorded in an oil record book, a log that is inspected by the U.S. Coast Guard. Information produced to the court established that instead of running bilge water through an oil water separator, the B. Sky discharged over 500 gallons of oily machinery space bilge water directly into the ocean and failed to record the discharge in their oil record book as required by law.
United States District Judge Leslie E. Kobayashi approved the payment of the $200,000 community service payment, per an agreement between the government and Doorae, to be donated to the National Fish and Wildlife Service Foundation to fund projects that preserve and enhance coral reefs and reef ecosystems in Hawaii. Judge Kobayashi also imposed a $750,000 fine on Doorae as part of the sentence.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said "Community service can be a means through which a corporate defendant addresses the results of its criminal activity. This payment represents a significant community service contribution as part of the sentence in this case."
"Maritime pollution is a serious threat to the health of the world's oceans. Annually, Coast Guard pollution investigators respond to 210 cases here in the Hawaiian Islands, diligently striving to help keep our waters pristine and healthy," said Rear Adm. Atkins. "In this case, Coast Guard and EPA investigators built a strong case package against a blatant polluter, helping the U.S. Attorney's Office successfully prosecute this case. Importantly, the nearly $1 million paid by Doorae included $200,000 for environmental restoration in our waters."
The case was investigated by U.S. Coast Guard Sector Honolulu, the U.S. Coast Guard Investigative Service and the EPA. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Kailua Man Sentenced to 46 Months in Prison for Drug Offense Committed Near SchoolRead the Press Release
HONOLULU -- Chief United States District Judge J. Michael Seabright yesterday sentenced Aaron Hu, 52, of Kailua, to 46 months imprisonment for possessing, with intent to distribute, a quantity of methamphetamine and heroin within 1,000 feet of a public elementary school on March 30, 2015. Hu was convicted on February 25, 2016 following a three-day jury trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced for the court, Hu agreed to sell approximately one ounce of heroin and a quantity of methamphetamine within 1,000 feet of Kailua Elementary School to an individual who was cooperating with law enforcement. Hu was also sentenced to serve a 12-year term of supervised release following the completion of his prison term as a result of having previously been convicted by the State of Hawaii for promotion of a dangerous drug in the second degree in 2006.
The case arose from an investigation conducted by the Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Thomas C. Muehleck.
Former Executive Director of Contractors Association Sentenced to 42 Months in Jail for Mail Fraud and Tax OffensesRead the Press Release
HONOLULU -- Raymond Fujii, 68, a resident of Kailua, Hawaii, was sentenced today by Chief U.S. District Judge J. Michael Seabright to 42 months in federal prison for engaging in a mail fraud scheme involving the embezzlement of $1,483,800, and failing to report that income on his federal tax returns. In addition to the 42 month term of imprisonment, Fujii was ordered to pay $1,234,713 in restitution to the victim organization and the Internal Revenue Service. Fujii pled guilty to mail fraud and filing a false federal income tax return on January 27, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced to the court, from 1997 through 2014, Fujii used his position to embezzle money from the Painting and Decorating Contractors Association of Hawaii ("PDCA"), and the Painting Industry of Hawaii Trade Promotion and Charity Fund ("TP&C"), a trust fund that promotes the local painting industry. Fujii, who was executive director of the former and administrator of the latter, organized and directed board meetings, and prepared minutes of meetings and financial statements for both organizations. Fujii also was an authorized signatory on the bank accounts for both entities.
During court proceedings, Fujii admitted writing checks to a company that he owned, either forging or fraudulently obtaining the signatures of directors on the checks, and then depositing the money in his personal account. Fujii obtained a total of $1,483,800, but failed to report the money on his federal or State of Hawaii income tax returns. The failure to report the income resulted in tax losses to the federal and state governments of $315,829 and $135,565, respectively. Following the discovery of the offense, Fujii sold his personal residence and used the funds to repay $564,915 to the PDCA.
During today’s sentencing proceedings, Chief Judge Seabright noted that Fujii’s conduct was a "naked betrayal" of the painting association’s trust, and that Fujii had obtained the money tax-free by not reporting it on his income tax returns.
The case was investigated by the Internal Revenue Service, Criminal Investigation, and the Department of Labor Office of Management Labor Standards, and was prosecuted by Assistant U.S. Attorney Larry Tong.
Kalihi Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
HONOLULU – Michael K. Kormanik, age 54, of Kalihi, was sentenced yesterday by Senior District Judge Helen Gillmor in federal court to 20 years imprisonment, followed by supervised release for life, for transporting and possessing child pornography. As part of his federal conviction, Kormanik will be required to register as a sex offender. Kormanik was charged with and pled guilty to two counts of transportation of child pornography and one count of possessing child pornography.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, Kormanik’s home computer contained more than 3,000 images and more than 400 videos of child pornography, and an IP address associated with Kormanik on a peer-to-peer file sharing network also had images of child pornography.
Kormanik faced a mandatory minimum sentence of 15 years because he had a prior conviction for sexual assault of a minor, related to his repeated sexual abuse of a ten-year-old boy. Kormanik also admitted having previously sexually abused two other young boys. During the sentencing proceedings, Judge Gillmor expressed serious concern that Kormanik had recently been spending significant time with young boys who lived in his neighborhood, and that he had provided them with marijuana.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Marc A. Wallenstein.
Oahu Woman Given Prison Term for Assaulting Her Child on Alaska-Hawaii FlightRead the Press Release
HONOLULU – U.S. Magistrate Judge Kevin S.C. Chang today sentenced Samantha Lealoha Watanabe, 38, of Oahu, to 30 days of imprisonment and one year of supervised release, including 90 days of home detention for assaulting her 15-month old child while onboard an Alaska Airlines flight from Anchorage to Honolulu on March 3, 2015.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that a jury found Watanabe guilty following a one-week trial in December 2015. According to evidence presented in court, Watanabe repeatedly hit her child in the face with a stuffed doll; hit her child’s face with an open hand; and pulled out tufts of her hair, among other acts. Passengers and flight attendants testified that they did not observe the child do anything to warrant that treatment.
Judge Chang noted that five of Watanabe’s other children had been permanently removed from her custody; that the victim in this case was no longer in her custody; and that Watanabe had just given birth to a seventh child.
The investigation resulting in this prosecution was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Marc A. Wallenstein and Thomas J. Brady conducted the prosecution.
Korean Company Fined $750,000 and to Make $200,000 Community Service Payment for Illegal Discharge of Waste WaterRead the Press Release
HONOLULU -- United States District Court Judge Leslie E. Kobayashi today accepted the guilty plea of Doorae Shipping Co., LTD, a South Korean maritime operations company, and sentenced the company to pay a fine of $750,000, a community service payment of $200,000, and a term of two years of probation for the failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships, and making false statements to the U.S. Coast Guard concerning the discharge of oil contaminated bilge water.
According to the Information to which Doorae pled guilty, the operation of a marine vessel, such as the B. Sky, an oil tanker ship flagged out of Vanuatu and operated by Doorae, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be recorded in an oil record book, a log that is inspected by the U.S. Coast Guard.
Information produced to the court established that instead of running bilge water through an oil water separator, the Chief Engineer of the B. Sky discharged over 500 gallons of oily machinery space bilge water directly into the ocean. The Court approved the payment of the $200,000 community service payment, per an agreement between the government and Doorae to be donated to the National Fish and Wildlife Service Foundation to fund projects that preserve and enhance coral reefs and reef ecosystems in Hawaii.
In addition, the Court also took the guilty plea of the Chief Engineer of the B. Sky, JEUNG MUN, to one charge of causing the maintenance of a faulty oil record book in violation of the Act to Prevent Pollution from Ships. The Court scheduled MUN’s sentencing for July 27, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said "All maritime companies, including those that provide refueling services on the open seas, must respect the laws and the obligations of their trade, which exist to prevent the spoiling of oceans and marine habitat. This office will continue to aggressively investigate and prosecute those who violate our nation’s laws enacted to protect our oceans and environment.
"The Coast Guard has a long-standing commitment to protecting our nation's maritime environment," said Captain Shannon Gilreath, Coast Guard Captain of the Port of for Honolulu. "This case is a great example of inter-agency teamwork to hold accountable vessel operators that choose to pollute the waters around the Hawaiian Islands."
"The oceans and marine wildlife must be protected from marine companies that look to cut corners by dumping untreated waste," said Jay M. Green, Special Agent in Charge of the Environmental Protection Agency’s (EPA) criminal enforcement program in Hawaii. "The defendants in this case falsified their log books in an attempt to conceal their crimes, but thanks to the thoroughness of Coast Guard and EPA investigators and the persistence of the United States Attorney’s Office, the defendants got caught. Today’s guilty pleas demonstrate that the American people will not tolerate the flagrant violation of U.S. laws."
The case was investigated by U.S. Coast Guard Sector Honolulu, the U.S. Coast Guard Investigative Service and the EPA. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Honolulu Man Sentenced to Life Without ParoleRead the Press Release
HONOLULU –Gilbert Lee Medina, 52, of Honolulu, was sentenced to life in prison in federal court yesterday by Senior District Judge Helen Gillmor for conspiring to distribute and possess with intent to distribute methamphetamine. There is no parole under current federal criminal law. Medina’s two prior drug felony convictions in California made imposition of the life sentence mandatory. A jury found Medina guilty of the conspiracy in December 2015, and also found him guilty of unlawfully possessing a firearm and attempting to enter a secure area of the Honolulu International Airport by fraud or false pretenses.
According to the evidence presented at trial, Medina was at the center of a large scale methamphetamine trafficking conspiracy that spanned at least 12 months from April 2012 to April 2013, and was responsible for well over 20 pounds of methamphetamine being brought from California to Hawaii. Medina received the large quantity of methamphetamine from several different sources and was responsible for distributing the methamphetamine to other members of the conspiracy in Hawaii.
The evidence presented at trial also established that Medina unlawfully possessed a firearm on his boat docked at the Ala Wai harbor. Evidence produced in court established that Medina attempted to use a false identification at the Honolulu International Airport in an effort to flee from Hawaii in May 2013, which led to the additional criminal offense for attempting to enter the secured area of the airport by presenting the false identification. Transportation Security Administration (TSA) officials did not permit Medina to get past the security, and ultimately he was arrested.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said, "This sentence is a stern warning that those individuals who repeatedly participate in drug trafficking risk being severely punished for their criminal conduct."
Michael Carney, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Honolulu, and United States Attorney Nakakuni observed that, "Methamphetamine is a vicious drug that destroys lives, devastates our communities and seriously compromises the public’s safety." Acting SAIC Carney said, "The sentence in this case is fitting of the serious crimes committed by the defendant, and HSI along with its federal, state and local law enforcement partners are committed to combatting the serious threat methamphetamine presents to the well-being of our communities."
The investigation which resulted in the charges in the case was conducted by HSI, with assistance from the United States Postal Inspection Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. TSA at Honolulu International Airport also contributed significantly to the investigation. Assistant U.S. Attorney Tony R. Roberts handled the prosecution.
Repeated Illegal Re-Entry Results in 28 Months Imprisonment for Mexican NationalRead the Press Release
HONOLULU -- United States District Judge Leslie E. Kobayashi sentenced Palemon Alexander Delatorre, age 37, to 16 months imprisonment and three years of supervised release on February 16, 2016, for re-entering the United States from Mexico without permission. In a related hearing conducted immediately after his sentencing, Judge Kobayashi revoked Delatorre's supervised release in another criminal immigration case and sentenced him to an additional 12 months imprisonment to be served consecutively to the 16 months imprisonment.
United States Attorney Florence T. Nakakuni said that according to court documents and information presented in court, Delatorre was previously convicted in this district court in September 2014, of re-entering the United States in May 2014 after having been deported in April 2014 following his apprehension by the Hawaii Police Department in Kona. Only two months prior to that deportation, in February 2014, Delatorre had been allowed to voluntarily leave the United States after being arrested by the Hawaii Police Department in Kona for contempt and traffic-related offenses.
According to information produced to the court, after he served approximately three and a half months in prison on his prior conviction for illegal re-entry, Delatorre, who also was sentenced to a one-year term of supervised release, was again deported back to Mexico in September 2014. Subsequently, Delatorre unlawfully re-entered the United States and was again arrested by the Hawaii Police Department in March 2015, resulting in the illegal re-entry charge and violation of a term of supervised release for which he was sentenced on February 16.
The investigation was conducted by Immigration and Customs Enforcement’s Homeland Security Investigations, assisted by the Hawaii Police Department. The prosecution was handled by Assistant U.S. Attorney Tracy Hino.
Hilo Man Convicted of Disobeying Park RangerRead the Press Release
HONOLULU – After a two-day bench trial in United States District Court, United States Magistrate Judge Richard L. Puglisi found Travis R. Sanders, age 36, of Hilo, guilty on February 10, 2016, of violating a lawful order of a United States Park Ranger and sentenced him to pay a $1,000 fine. The trial was held in Hilo, on the island of Hawaii.
Florence T. Nakakuni, Untied States Attorney for the District of Hawaii, said that Sanders was convicted of disobeying a lawful order of a government employee, a Class B misdemeanor, while Sanders was in Hawaii Volcanoes National Park on the island of Hawaii during the evening of April 25, 2015. According to the evidence presented at trial, Sanders was flying a drone over a crowd gathered to view the Halema’uma’u crater. It is unlawful to fly a drone in a national park. A United States Park Ranger identified himself as a law enforcement officer and ordered Sanders to bring down the drone. Sanders initially refused, then eventually landed the drone. After Sanders refused to identify himself upon request of the Ranger, the Ranger attempted to place Sanders in custody and Sanders fled. The Ranger ordered Sanders to stop, which Sanders refused to do. The Ranger then used his taser to apprehend Sanders and took him into custody.
Magistrate Judge Puglisi found that Sanders heard and understood the Ranger’s order to stop; that the order was lawful; and that Sanders willfully disobeyed the order. Magistrate Judge Puglisi further found that the Ranger’s conduct, including deploying the taser, was "entirely justified." Sanders was not convicted of two other counts related to disobeying the orders to land the drone and to identify himself because he eventually complied with those orders. In addition to having to pay the fine, Sanders is banned from the Park for one year.
The National Park Service conducted the investigation which resulted in the charges in the case. Assistant U.S. Attorney Marc Wallenstein handled the prosecution.
Former Waipahu Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
HONOLULU -- Derek West, 33, formerly of Waipahu, Hawaii, was sentenced yesterday to 30 years in prison for producing child pornography. West, who had previously pled guilty to the offense, must also serve a lifetime term of supervised release following his jail term.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to a December 16, 2014 complaint, the case began with a report to the Honolulu Police Department (HPD) that child pornography had been found on West’s cellular telephone. HPD detectives obtained a search warrant for the telephone, and found approximately 482 images that depicted children engaged in sexually explicit conduct. HPD detectives then contacted the Federal Bureau of Investigation (FBI). FBI and Homeland Security Investigations (HSI) agents later determined that 52 of the images were of a two year- old girl, some of which showed her engaged in sexual acts with West. During court proceedings, West admitted taking those pictures and sharing them over the internet.
In imposing the maximum terms of imprisonment and supervised release, United States District Judge Derrick K. Watson noted that the damage done to the two year-old victim was "immeasurable and enduring." West has been in custody since his arrest on December 16, 2014.
The case was investigated by the FBI, HSI, and HPD. The prosecution was handled by Assistant U.S. Attorney Larry Tong.
Honolulu Businessman Sentenced to 46 Months in PrisonRead the Press Release
HONOLULU – Albert S.N. Hee, 61, of Kailua, Hawaii, was sentenced today to 46 months in prison for engaging in a ten-year scheme of corruptly interfering with the Internal Revenue Service (IRS) in the calculation and collection of his taxes, and for filing six false individual tax returns which underreported his income for the years 2007-2012, announced Florence T. Nakakuni, United States Attorney for the District of Hawaii. Senior U.S. District Judge Susan Oki Mollway also ordered Hee to pay $431,793 in restitution to the IRS, and to pay a fine of $10,000.
Hee was convicted of all counts in the Indictment on July 10, 2015, after an eleven day jury trial. According to court documents and the evidence introduced at trial, Hee owned Waimana Enterprises, Inc., a telecommunications company based in Honolulu, Hawaii. Hee used his company to pay approximately $2.9 million of his personal expenses. The bulk of the expenses were falsely claimed as business deductions on Waimana’s corporate income tax returns, or falsely characterized as “loans” to Hee, Waimana’s sole shareholder. Hee did not report the receipt of the payments as income on his personal income tax returns, and did not pay tax on it.
Information presented to the court reflected that Hee’s lavish spending included $96,000 for personal massages which were deducted as “consulting fees,” $1.6 million in salaries and benefits for his wife and children who were not real employees of the company, and more than $736,900 in college tuition, housing and other expenses for his children. In 2008, Hee bought a $1.3 million dollar home in Santa Clara, California with corporate money and told his accountants that the property would be used by employees of the company. Instead, Hee’s children lived in the home from 2008-2012, which was within skateboarding distance of Santa Clara University, where they attended college. Hee’s children lived at the home, rent-free, and collected rent from others, without paying the amounts over to Waimana. Waimana also paid for vacations for Hee’s family to DisneyWorld, Tahiti, France, and Switzerland, which he falsely characterized as business related. Hee also directed Waimana to pay $17,000 for a five-day family vacation at the Mauna Lani resort on the Big Island of Hawaii, which Hee falsely characterized as a “stockholder’s meeting” even though he was the sole shareholder of the company.
The case was investigated by the Internal Revenue Service-Criminal Investigation, and prosecuted by Assistant U.S. Attorney Larry Tong and Trial Attorney Quinn P. Harrington of the Tax Division of the Department of Justice.
Honolulu Man Convicted of Drug and Firearm ChargesRead the Press Release
HONOLULU – After an eight-day trial in the United States District Court in Honolulu, a federal jury found Gilbert Lee Medina, 52, of Honolulu, guilty on Friday, December 18, of conspiring to distribute and possess with intent to distribute methamphetamine, as well as unlawfully possessing a firearm. The jury also found him guilty of attempting to enter a secure area of the Honolulu International Airport on May 29, 2013, by fraud or false pretenses.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the evidence presented at trial, Medina was at the center of a large scale methamphetamine trafficking conspiracy that spanned at least 12 months from April 2012 to April 2013, and was responsible for well over 20 pounds of methamphetamine being brought from California to Hawaii. Medina received the large quantity of methamphetamine from several different sources and was responsible for distributing the methamphetamine to other members of the conspiracy in Hawaii.
The evidence presented at trial also established that Medina unlawfully possessed a firearm on his boat docked at the Ala Wai harbor. Medina had prior felony convictions and is prohibited from possessing firearms. Additionally, the evidence established that Medina attempted to use a false identification at the Honolulu International Airport in an effort to flee from Hawaii in May 2013. TSA officials did not permit Medina to get past the security, and Medina was ultimately arrested and charged with an additional criminal offense for attempting to enter the secured area of the airport by presenting the false identification.
Because of his prior criminal record, Medina faces a possible sentence of life in prison on the methamphetamine trafficking charge when he is sentenced by Senior District Judge Helen Gillmor on March 31, 2015. The maximum penalty for the firearm offense is up to ten years in prison, while the unlawful entry offense is a misdemeanor.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations, with assistance from the United States Postal Inspection Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Transportation Security Administration at Honolulu International Airport also contributed significantly to the investigation. Assistant U.S. Attorney Tony R. Roberts handled the prosecution.
U.S. Attorney's Office Collects over $10 Million in Civil and Criminal Actions for U.S. TaxpayersRead the Press Release
HONOLULU –U.S. Attorney Florence T. Nakakuni announced today that the District of Hawaii collected over $7.8 million in criminal and civil actions in Fiscal Year 2015. Of this amount, approximately $7.7 million was collected in criminal actions. Additionally, her office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2.3 million in civil actions pursued jointly with these offices.
Attorney General Loretta E. Lynch previously announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Lynch. "The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."
In January 2015, for example, the District of Hawaii recovered $1 million from Matson Terminals, Inc. as a result of convictions on two criminal charges relating to the unauthorized discharge of approximately 233,000 gallons of molasses into Honolulu Harbor in September 2013. The $1 million consisted of a $400,000 fine and $600,000 in restitution, the latter divided equally between the Waikiki Aquarium to support Coral Programs and Invasive Algae Clean-ups and Sustainable Coastlines Hawaii to inspire local communities to care for coastlines through beach clean-ups.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Prison Gang Member Sentenced to over 17 Years in PrisonRead the Press Release
HONOLULU – Florence T. Nakakuni, United States Attorney for Hawaii, announced that Defendant Tineimalo Adkins was sentenced by U.S. District Judge Leslie E. Kobayashi to 210 months (17 ½ years) imprisonment on November 10. On October 10, 2014, following a multiple-week trial, a jury found Adkins guilty of the crime of Violent Crimes in Aid of Racketeering Activity (VICAR).
According to information produced in court, on February 17, 2013, Adkins, along with other USO Family prison gang inmates, beat and assaulted another inmate, resulting in the victim suffering traumatic brain injury and multiple facial fractures and lacerations,. At the time, Adkins was the "shot caller," for the USO Family prison gang which ordered the attack on the inmate at the Halawa Correctional Facility in order to further their power and influence within the facility.
The trial involved extensive testimony about the USO Family’s use of violence and witness intimidation to maintain their status as the most powerful prison gang within the state prison system.
In rendering the sentence, Judge Kobayashi told Adkins that the assault was "shockingly brutal," and that "it was [his] personal status and position in the USO family that allowed [him] to design and lead this assault."
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the State of Hawaii Department of Public Safety, and the Honolulu Police Department. Assistant U.S. Attorneys Jill Otake and Thomas J. Brady prosecuted this case.
Honolulu Man Indicted for Murder of WifeRead the Press Release
HONOLULU – A federal grand jury today indicted Michael Walker, age 36, of Honolulu for murder in the first degree for the killing of his wife and a second charge of conspiring to do so. This superseding indictment joined Walker with Ailsa Jackson, age 25, who had previously been indicted for the same murder occurring between November 14 and 15, 2014, on Aliamanu Military Reservation on Oahu. Walker was arrested without incident by the Federal Bureau of Investigation (FBI), assisted by the Army Criminal Investigation Command (CID), after the indictment, and his initial appearance is set in U.S. District Court on November 5 at 11:00am.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the superseding indictment alleges that:
- In September 2014, Walker expressed to Jackson his desire to have his wife "gone," after which Jackson said that one way to stage a killing was to make it look like a burglary.
- During a meeting on November 14, 2014, Jackson informed Walker that she was going to execute the killing that night, and Walker confirmed that he was working that night and gave Jackson instructions as to how she would know which method of entry into Walker’s home would work.
- Around midnight between November 14 and 15, Jackson entered Walker’s home on Aliamanu Military Reservation with the assistance of a key left near the rear entry of the house, grabbed a knife from the kitchen, and stabbed Walker’s wife multiple times, resulting in her death.
The maximum penalty if convicted of murder in the first degree is death, while the maximum penalty for conspiring to commit murder is life imprisonment. Charges and allegations contained in the superseding indictment are merely accusations, and each defendant is considered innocent unless and until proven guilty. The investigation of this case was conducted by the FBI, which has acknowledged the critical assistance of the Army CID. The prosecution is being handled by Assistant U.S. Attorneys Thomas Brady and Jill Otake and Special Assistant U.S. Attorney Sean Mahoney.
Former Honolulu Police Department Officer Sentenced for Violating the Civil Rights of Two MenRead the Press Release
WASHINGTON – District Judge J. Michael Seabright today sentenced former Honolulu Police Officer Vincent Morre, 38, to 30 months in prison for violating the civil rights of two Honolulu men. On May 19, 2015, Morre pleaded guilty to two counts of depriving the two men’s right to be free from the use of unreasonable force by a law enforcement officer on Sept. 5, 2014.
According to information presented to the court, Morre, then a 10 year veteran of the Honolulu Police Department, was searching for a fugitive when he entered a game room on Hopaka Street. Once in the game room, Morre, in an unprovoked attack, kicked J.T. in the head. Morre then continued to search the game room for the fugitive. On his way out, Morre reapproached J.T. but first struck F.F. (who was seated next to J.T) in the face twice and then kicked his chest. Morre then continued the assault on J.T. by kicking J.T. off his chair. As Morre was leaving the game room, he threw a metal stool which hit J.T. in the head, requiring three stitches. Five days later, Morre filed a false police report omitting that he had assaulted J.T. or F.F.
“When this defendant violated the trust of the people he was sworn to serve, the Department of Justice stood ready to enforce the law and protect the civil rights of all Americans,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.
“This case represents important steps in vindicating the civil rights of the victims of unreasonable use of force by a law enforcement officer,” said U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
“The FBI would like to thank the Honolulu Police Department for its cooperation, assistance, and transparency during this investigation,” said Special Agent in Charge Paul Delacourt of the FBI’s Honolulu Field Office.
Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii and Trial Attorney Angie Cha of the Civil Rights Division prosecuted the case.
Methamphetamine Trafficker Admits False Accusations and Receives over 14 Years in PrisonRead the Press Release
HONOLULU – Chief United States District Judge Susan Oki Mollway sentenced Malia Arciero, age 34, a Honolulu resident, yesterday to 172 months (14 years, four months) imprisonment for four counts of knowing and intentional distribution of 50 grams or more of methamphetamine. A federal jury found Arciero guilty of those charges on January 8, 2015.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Chief Judge Mollway found that Arciero’s accusations of criminal misconduct against the lead federal criminal investigator in the case during the criminal litigation constituted obstruction of justice and were attempts to manipulate the judicial proceedings toward a disposition favorable to her. On the eve of this sentencing, Arciero filed a sworn declaration that the prior assertions she made about the agent’s misconduct in the criminal litigation were unsubstantiated and without any basis. She also filed a dismissal of a state civil lawsuit against the agent containing similar allegations.
According to the information produced to the court, Arciero was arrested on April 30, 2013, as she was transporting a pound of methamphetamine to a person cooperating with law enforcement. After her arrest, Arciero confessed to transporting the methamphetamine and previously distributing multi-pound quantities of methamphetamine.
The case resulted from an investigation by agents of Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney Beverly Wee Sameshima is handling the prosecution, while former Assistant U.S. Attorney Michael Kawahara conducted the prosecution through trial.
Wire Fraud Defendant Convicted of Failure to Surrender for Service of SentenceRead the Press Release
HONOLULU - A federal jury yesterday convicted Ruben Carrillo Gonzalez, age 53, for failing to surrender to federal authorities for service of his term of imprisonment. U.S. District Court Judge Leslie E. Kobayashi had ordered Gonzalez to self-surrender on January 5, 2015 at a federal correctional institution in California, but Gonzalez failed to surrender on that date.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said as a result of this conviction for failure to surrender for service of his sentence, Gonzalez is facing a sentence of up to ten years imprisonment which is required to be consecutive, or in addition, to the term of imprisonment for which he failed to surrender. Gonzalez had been sentenced by Judge Kobayashi on September 13, 2012, to 41 months imprisonment for committing wire fraud and had remained out of custody during the time of the appeal of this conviction to the Ninth Circuit Court of Appeals, which ultimately rejected the appeal and affirmed the conviction. According to information produced during the trial, the United States Marshal’s Service arrested Gonzalez on January 9, 2015 in Arizona where he resided pursuant to an arrest warrant issued after he failed to surrender.
This case was investigated by the Marshal’s Service with the assistance of the United States Pre-Trial Services Office. Assistant United States Attorney Chris A. Thomas prosecuted the case.
Maui Resident Sentenced to 72 Months for Mail TheftRead the Press Release
HONOLULU – Senior District Judge Helen Gillmor yesterday sentenced Davelyn Mahi, 42, a resident of Maui County, to six years imprisonment of 72 months for aggravated identity theft and theft of mail. The Court also sentenced Mahi to a term of one year of community confinement following her release from custody to assist the United States Probation Office in supervising her, and ordered her to pay $8,551.03 in restitution.
Florence T. Nakakuni, U.S. Attorney for the District of Hawaii, said, "The scope of this crime demonstrates the continuing need for vigilance in protecting personal information." Evidence offered in court showed that Mahi stole hundreds of mail items and recovered credit cards and other property over at least a six month time period, which she then used to fraudulently purchase thousands of dollars worth of goods. Mahi’s 230 prior arrests and 36 prior convictions were substantial factors supporting the Court’s decision to impose a sentence of imprisonment above the maximum sentence advised by the United States Sentencing Guidelines.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, "Postal Inspectors worked closely with the U.S. Attorney’s Office and the Maui Police Department on this investigation and will continue to vigorously protect the U.S. mail against all forms of criminal attack and misuse."
The case was prosecuted by Assistant U.S. Attorney Ken Sorenson of the U.S. Attorney’s Office for the District of Hawaii.
Leader of Methamphetamine Trafficking Conspiracy Sentenced to 18 Years in PrisonRead the Press Release
HONOLULU - United States District Judge Derrick K. Watson sentenced Serafine Magallon, 41, to 225 months imprisonment on August 11, for conspiracy to distribute and possess with intent to distribute more than five hundred grams of methamphetamine. In sentencing Magallon, a San Jose, California resident, Judge Watson found that he held a leadership role in the conspiracy.
United State Attorney Florence T. Nakakuni said that according to information produced in court, the case involved undercover and wiretap investigations and the coordinated efforts of law enforcement agents in Honolulu, Nevada, and California. The information reflected that in August 2012, an express mail parcel containing nine pounds of methamphetamine ("ice") was seized in Honolulu after it was sent from Las Vegas to Honolulu. The seizure resulted in the arrests of Honolulu and Las Vegas residents. Those arrests in turn led to additional arrests, including that of Magallon, and the seizure of approximately 20 more kilograms of "ice" in Las Vegas, Sacramento and Honolulu as a result of searches in all three locations.
The case resulted from an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration in the judicial districts of Hawaii, Nevada, and Eastern California, as well as the United States Postal Inspection Service. Assistant United States Attorney Beverly Wee Sameshima handled the prosecution.
Moiliili Resident Sentenced to 25 Years in Prison for Distributing Methamphetamine and CocaineRead the Press Release
HONOLULU - United States District Judge Derrick K. Watson sentenced Charles H. Foster, age 33, to 304 months in prison on July 21 (Tuesday) for conspiring to possess with intent to distribute methamphetamine and cocaine from approximately September 2012 to February 2013. A jury had convicted Foster and codefendant John Garcia on February 19, 2015, after a five-day trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, Foster was the leader of a drug trafficking ring in Honolulu that was found to be accountable for distributing over 1,300 grams of "Ice", over 2,700 grams of generic methamphetamine and over 2,200 grams of cocaine. In February 2013, the Honolulu Police Department executed a search warrant and recovered from Foster’s Waiola Street apartment approximately three pounds of "Ice," over $33,000, and an assault rifle with three magazines loaded with ammunition Foster also had a prior state felony drug conviction in Hawaii in 2007 for distributing cocaine.
The drug trafficking ring also included Foster’s half brother, codefendant Chrystyan Burke, who was sentenced to 50 months imprisonment in March 2015. Garcia’s sentencing is set for September 17, 2015.
This case was investigated by the Honolulu Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Chris A. Thomas prosecuted the case.
Pearl City Man Sentenced to over 29 Years in Prison for Child Pornography ProductionRead the Press Release
HONOLULU – Ray K. Yokoyama, age 54, formerly of Pearl City, Hawaii, was sentenced in federal court today to 350 months in prison for producing images of a minor engaged in sexually explicit conduct, and making them available over the Internet. United States District Judge Derrick K. Watson also ordered that Yokoyama register as a sex offender, and undergo a lifetime of supervised release following service of his prison term.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced to the court, Yokoyama (1) produced child pornography using a minor on two occasions in 2009, (2) distributed child pornography over an Internet file-sharing network in July 2012, and (3) possessed child pornography in January 2013. According to an affidavit filed on January 18, 2013, the Federal Bureau of Investigation initiated an investigation after an undercover agent in Dallas, Texas downloaded child pornography from a computer in Hawaii. Agents traced the computer's Internet Protocol address to Yokoyama's home in Pearl City, and executed a search warrant for the residence. Agents recovered computer storage media, including a disk that contained images of a minor boy engaged in sexually explicit conduct.
During later court proceedings, Yokoyama admitted taking pictures of a minor boy engaged in sexually explicit conduct. According to information provided in court, the boy was approximately nine years old at the time. Images of the boy were later found in a folder in Yokoyama’s computer, which was available to the public over a file-sharing network.
In imposing today’s sentence, United States District Judge Derrick K. Watson observed that Yokoyama had prior criminal convictions, had once impersonated a law enforcement officer, and failed to accept responsibility for his conduct. Yokoyama has been detained at the Federal Detention Center since his arrest on January 18, 2013.
The case was investigated by the FBI, with support from Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Larry Tong.
Honolulu Woman Pleads Guilty to Fraud SchemeRead the Press Release
HONOLULU – Jennifer McTigue, age 48, of Honolulu, today pled guilty to conspiring to commit wire fraud, mail fraud, and money laundering, as well as committing wire fraud, mail fraud and money laundering. McTigue pled guilty in federal district court before Senior District Judge Consuelo B. Marshall a day after jury selection for her trial was to have commenced.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, McTigue and codefendants Marc Melton and Sakara Blackwell operated a scheme to defraud lending institutions, buyers of real property and title insurance companies through a process of filing fraudulent mortgage release documents with the Hawaii Bureau of Conveyances. Once the Bureau of Conveyances accepted and filed the defendants’ fraudulent "satisfaction of mortgage" forms, McTigue, Melton and Blackwell were able to market and sell properties at substantial profit, since the lending institution holding the mortgage was never paid its outstanding debt. The scheme resulted in the defrauding of not only mortgage lenders, but also innocent buyers who unwittingly bought properties that appeared to be free and clear but were still subject to the existing mortgages. Documents filed in court allege that the defendants defrauded others of over $3.1 million through the operation of their scheme.
McTigue faces up to five years imprisonment as to one conspiracy and up to ten years imprisonment as to the other; up to 20 years imprisonment for wire fraud and mail fraud charges, and up to to ten years imprisonment on the money laundering charge. McTigue will be sentenced by Judge Marshall on October 26, 2015. Melton and Blackwell previously pled guilty and are to be sentenced by Senior District Judge Charles R. Breyer on September 29, 2015.
The investigation resulting in this prosecution was conducted by the Federal Bureau of Investigation. John A. Michelich, Senior Litigation Counsel of the Fraud Section of the Criminal Division of the Department of Justice, and Assistant U.S. Attorneys Marc A. Wallenstein and Kenneth M. Sorenson handled the prosecution.
Honolulu Businessman Convicted of Tax ChargesRead the Press Release
HONOLULU – A federal jury today found Albert S.N. Hee, 61, of Kailua, Hawaii, guilty of corruptly interfering with the Internal Revenue Service in the calculation and collection of his taxes, and with filing six false individual tax returns which failed to report his income for the years 2007 through 2012. The verdict concluded deliberations which had begun on Friday, July 10, after an 11-day trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that, according to evidence presented in court, Hee owned Waimana Enterprises, Inc., a holding company which owned various subsidiaries including Sandwich Isles Communications and ClearCom, Inc. Between 2002 and 2012, Hee directed Waimana to pay approximately $2.3 million in personal and family expenses on his behalf, and falsely deducted the payments as if they were legitimate business expenses. According to the trial testimony, Hee also failed to report the value of the benefits which he received as income on his own income tax returns. The personal expenses paid for by Waimana included the following items:
- Personal massage payments totaling $96,000 for two-hour massages given to Hee twice a week;
- $119,909 in credit card charges made for personal expenses, including trips to DisneyWorld, Tahiti, France and Switzerland made by Hee’s wife, children, and others, and a four-day family vacation at the Mauna Lani resort, which Hee falsely characterized as a "stockholder’s meeting";
- College tuition and housing expenses totaling over $736,900 for Hee’s three children, who attended college on the mainland; and
- Approximately $1,676,685 in wages and fringe benefits paid to Hee’s wife and three children, who did little or no work for Waimana.
According to testimony presented during the trial, Hee also had Waimana buy a home in Santa Clara, California for $1.3 million, which he used as college housing for his two children. The children were also allowed to rent rooms out to others, and to keep the money to fund their own expenses.
Hee will face a maximum penalty of three years’ imprisonment, and a fine of $250,000, as to each of the seven counts when he is sentenced on October 26, 2015.
The case was investigated by the Internal Revenue Service, Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Les Osborne and Larry Tong, and Trial Attorney Quinn Harrington of the Tax Division of the Department of Justice.
Jury Finds California Man Guilty of Attempted Methamphetamine Trafficking on KauaiRead the Press Release
HONOLULU – A federal jury found Roman Gabriel Contreras, 44, of Ontario, California, guilty on Monday, July 6, after a three day trial in United States District Court in Honolulu. Contreras was found guilty of attempted possession with intent to distribute of more than 500 grams of a substance containing methamphetamine on Kauai on March 24, 2015.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that evidence presented at trial showed that Contreras, utilizing a false name, flew to Lihue airport from Los Angeles International airport on March 24, 2015 with three plastic containers hidden in baggage checked under the fictitious name. Evidence also established that the three containers which held almost three pounds of pure methamphetamine, were discovered after Drug Enforcement Administration (DEA) agents executed a search warrant on March 25th on Contreras’ bags. Evidence also showed that Contreras attempted to avoid a DEA agent and Kauai Police Department Officers after he deplaned the California flight at Lihue airport.
Contreras, who has a prior state felony drug conviction for promoting methamphetamine, faces up to life in prison, with a mandatory minimum 20-year term of imprisonment when he is sentenced by District Judge Derrick K. Watson on October 21, 2015.
The investigation which resulted in the charge in the case was conducted by DEA and the Kauai Police Department. The prosecution was handled by Assistant U.S. Attorney Thomas Muehleck.
Man Sentenced to 17.5 Years in Prison for Methamphetamine Trafficking on MauiRead the Press Release
HONOLULU – Ruben Settle, 38, was sentenced on June 29 by Chief District Judge Susan Oki Mollway to 210 months imprisonment for his aggravated role in a plan to distribute methamphetamine on the island of Maui. Settle had previously pled guilty on March 12, 2015 to possessing, with intent to distribute 500 grams or more of methamphetamine.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the evidence presented in court showed that Settle recruited other individuals to assist him in distributing methamphetamine on Maui including approximately 700 grams of "ice" seized from Settle by Maui Police on December 17, 2014.
At the sentencing hearing, the court found that Settle, a citizen of Mexico without legal authority to be in the United States, was a threat to the public safety based on the large amount of methamphetamine involved and Settle’s long criminal history including prior drug convictions. After completing his sentence, Settle will be deported to Mexico for the second time.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations and the Maui Police Department. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
California Man Receives Life in Prison for Methamphetamine TraffickingRead the Press Release
HONOLULU – United States District Judge Derrick K. Watson today sentenced California resident Alan L. Mapuatuli, age 44, to a prison term of life imprisonment, without the possibility of parole, for distribution of crystal methamphetamine and possession with intent to distribute crystal methamphetamine. Mapuatuli was subject to a mandatory life sentence on the latter charge and eligible for a life sentence on the former as a result of having two prior felony drug trafficking-related convictions in the State of California. Mapuatuli was found guilty after a jury trial in January 2015.
United States Attorney Florence T. Nakakuni said that according to information produced in court, Mapuatuli was convicted as the result of an undercover transaction between Mapuatuli and an informant involving a pound of methamphetamine. That transaction was monitored and recorded by federal agents. Based on information developed in the investigation, Mapuatuli was stopped as he drove away from the transaction. When his vehicle was searched, agents found the cellphone he had used to communicate with the informant, a backpack containing six ounces of crystal methamphetamine, $15,975.00 in U.S. currency, a loaded .45 caliber pistol, and a leather bag which contained an additional pound of crystal methamphetamine.
Mapuatuli also received a five-year term of imprisonment for possession of a firearm in furtherance of a drug trafficking crime, which is required to be consecutive to the other sentences.
The prosecution was the result of an investigation by Homeland Security Investigations/Immigration and Customs Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Assistant U.S. Attorney Jonathan M. F. Loo.
Two Former Maui Residents Found Guilty of Fraud Charges Related to Operation of $26 Million Dollar Ponzi SchemeRead the Press Release
HONOLULU -- Following a 25-day trial spanning over seven weeks, a federal jury yesterday found George Lindell, 67, and Holly Hoaeae, 40, both formerly of Maui, guilty of eight mail fraud and two wire fraud charges in connection with their operation of a multi-million dollar Ponzi scheme associated with their mortgage and insurance business on Maui. Lindell was also convicted of four counts of money laundering.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to evidence produced in court, 166 people invested over $26 million in an investment scheme called “The Parking Lot” and lost a net amount of $8.9 million dollars. Lindell and Hoaeae began an investment scheme in connection with their operation of their business “The Mortgage Store,” in which they issued promissory notes promising to pay a guaranteed rate of return of seven percent. Lindell and Hoaeae, using radio ads, magazines and a weekly radio show, urged potential investors to attend their weekly workshops at “The Mortgage Store” where they taught seminars on how to “harness” or use the equity in their homes for investment purposes. Lindell and Hoaeae would then utilize their status as mortgage brokers to refinance investor residences in order to extract the equity in investor homes for the purposes of investment.
According to the information revealed in court, Lindell and Hoaeae would then urge investors to invest money in their investment scheme, known as “The Parking Lot”, where investors could “park” their money and earn guaranteed rates of interest. Lindell and Hoaeae advertised the Parking Lot as “safe” and invested largely in secure corporate bonds in Fortune 500 companies. In truth and fact, Lindell and Hoaeae were investing in “junk” bonds and/or marginal real estate investment activity and using the remainder of the funds to support their luxurious lifestyles and pay existing investors with new investor funds. During the scheme Lindell built a $3.5 million dollar residence above Lahaina in large part with investor funds and Hoaeae used hundreds of thousands of dollars in investor funds to support her personal lifestyle including trips, automobiles and payments of extensive credit card debt.
Lindell and Hoaeae will be sentenced on September 9, 2015 by United States District Judge Derrick K. Watson. Lindell and Hoaeae face up to 20 years in prison on each of the ten mail and wire fraud offenses. Lindell also faces up to ten years in prison on each of the four money laundering offenses. Each charge also carries a potential fine of up to $250,000.
The investigation of this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Ken Sorenson and Andrea Hattan.
Army Sergeant Indicted for Accepting Bribes from Afghan Trucking Company in Exchange for Stealing Jet Fuel in AfghanistanRead the Press Release
HONOLULU -- Marvin L. Ware, 46, a Sergeant First Class with the 25th Infantry Division, 325th Brigade Support Battalion, Alpha Company, Schofield Army Barracks, Hawai’i has been indicted and arrested on federal charges arising from his alleged role in a scheme to steal jet fuel from Forward Operating Base Fenty, near Jalalabad, Afghanistan, in exchange for cash bribes from an Afghan trucking contractor.
According to an Indictment returned on May 20, 2015 by the federal grand jury in Hawai’i, during late 2011 and early 2012, FOB Fenty served as a regional fuel depot which supplied outlying U.S. military bases with JP8 jet fuel. Fuel deliveries were made by a local Afghan contractor, which transported the fuel in 3,000 gallon tanker trucks, termed “jingle trucks.” The Indictment alleges that between December 2011 and February 2012, Ware and two other servicemen, Sergeant Regionald Dixon and Specialist Larry Emmons, conspired to accept, and accepted, bribes in return for participating with the contractor in the theft of jet fuel from FOB Fenty. According to the Indictment, Ware and the others agreed to fill and divert jingle trucks, in return for which they received $6,000 for each truckload of stolen fuel.
The Indictment specifically alleges that Ware, Dixon and Emmons filled the jingle trucks with jet fuel, using United States military equipment, at clandestine locations and at times not likely to arouse suspicion. According to the Indictment, Ware and Emmons facilitated their scheme by creating fraudulent official military documents purporting to authorize the movement of fuel from FOB Fenty to other locations. Dixon and Emmons were charged and pled guilty to bribery charges in June 2012 for their participation in the scheme.
Ware was charged yesterday with conspiring to solicit and accept bribes, one count of bribery, one count of theft, and one count of money laundering based on the transfer, from Afghanistan to Wahiawa, Hawaii, of $25,000 which he knew were proceeds of his offenses, and which transfer was designed to conceal the nature, source and ownership of the funds.
Ware was arrested on May 21, 2015, and appeared in federal court, where he pled not guilty to all charges. Trial was scheduled for July 21, 2015 before United States District Judge Leslie E. Kobayashi. If convicted, Ware will face maximum penalties of five years’ imprisonment for the conspiracy offense, 15 years’ imprisonment for the bribery offense, 20 years’ imprisonment for the money laundering offense, and ten years’ imprisonment for the theft offense, as well as the forfeiture of the proceeds of the illegal activity. An indictment is merely an accusation, and Ware is presumed innocent until and unless proven guilty.
Ware is the seventh person charged as part of an ongoing, national investigation into the theft of fuel at FOB Fenty. In addition to Ware, Dixon and Emmons, Sergeant Christopher Weaver, Specialist Stephanie Charboneau, civilian Jonathan Hightower, and Sergeant First Class Kevin Abdullah were prosecuted in the District of Colorado and the Western District of Kentucky, respectively, for a separate scheme to steal fuel from FOB Fenty in 2010.
“It’s very troubling to discover that critical military supplies were stolen by the very people who are supposed to be protecting and serving our country,” said U.S. Attorney for the Southern District of California Laura Duffy. “That such corruption allegedly occurred in a war zone makes it even worse.”
“Today’s arrest again demonstrates our continued resolve to prosecute all corrupt public officials, at whatever level, wherever their conduct occurs,” added Florence E. Nakakuni, U.S. Attorney for Hawai’i.
“SIGAR has been at the forefront of a Southwest Asia theft of fuel initiative, which to date has prosecuted seven individuals, recovered over $1.6 million in illegal criminal proceeds and $20 million in civil penalties, and in the process, improved the safety and security of the supply of fuel to our Warfighters in Afghanistan. With the resources at our disposal, we will continue to identify and protect such strategic priorities through innovative, proactive investigatory measures, such as those that have proven so effective in these cases,” said John Sopko, the Special Inspector General of Afghanistan Reconstruction.
“It is reprehensible when a military service member abandons his ethical responsibilities and violates the sacred public trust for personal enrichment,” said Special Agent in Charge Janice M. Flores, of the Defense Criminal Investigative Service (“DCIS”) Southwest Field Office, Arlington, TX. “Today's arrest demonstrates the continued commitment of the DCIS, along with our law enforcement partners, to aggressively investigate and prosecute anyone who commits this kind of crime in order to protect the integrity of the Department of Defense and the sacrifices of the American public, especially those service members who are serving honorably and selflessly in Southwest Asia.”
The case is being investigated by SIGAR, DCIS, Army CID, and the Defense Contract Audit Agency, with substantial assistance from the FBI, and prosecuted by Assistant U.S. Attorneys Mark W. Pletcher of the Southern District of California and Ken Sorenson of the District of Hawai’i.
Anyone with information relating to fraud or corruption in government contracting should contact the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Following Justice Department's Review, Hawaii State Court Commits to Equal Access for Non-English SpeakersRead the Press Release
WASHINGTON – The Justice Department announced today that it has closed its review of the Hawaii Judiciary’s Language Access Program following the department’s successful provision of technical assistance to the Hawaii Judiciary. The department’s Federal Coordination and Compliance Section (FCS) of the Civil Rights Division began its work following the receipt of complaints raising concerns about the court system’s provision of language services to limited English proficient (LEP) individuals in state court proceedings and court operations in alleged violation of Title VI of the Civil Rights Act of 1964. Title VI requires recipients of federal financial assistance, such as courts, to provide competent language services free of charge to LEP individuals in court proceedings and operations. Nearly 13 percent of Hawaii’s population is LEP.
The department and the Hawaii Judiciary have worked cooperatively to effectuate a number of improvements to language services. The judiciary’s accomplishments include:
- Issuing a clear policy stating that all LEP individuals would be provided competent court interpretation free of charge in court proceedings, and that language services would also be provided for other court operations.
- Implementing an awareness campaign to increase the public’s knowledge on how to access the court’s language services, including the creation of multilingual outreach materials in hard copy and on the web. It also enhanced its website to make it easier to find information about its language assistance services, and created 14 language-specific webpages that contain all of the language-specific translations in one location.
- Beginning to create a language assistance complaint system.
- Revising its court interpreter assignment system, training interpreters and providing mandatory training for judicial staff on the interpreter assignment process.
- Implementing oversight measures to ensure that the language access program complies with Title VI.
"I commend the Hawaii Judiciary for its proactive efforts to provide all communities with equal access to justice regardless of the language they speak," said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. "The results we are seeing in Hawaii are a testament to what collaboration and cooperation can achieve. Hawaii knows its work is not done, and we welcome the opportunity to continue to provide assistance whenever needed."
The department has worked with courts across the country to improve the provision of language services to LEP individuals. http://www.lep.gov/resources/resources.html#SC. It also released "Language Access Planning and Technical Assistance Tool for Courts" last year which provides court systems with a series of questions to consider as they develop and implement plans to provide language assistance.
Please click here for further information about FCS. For additional LEP-related resources, please go to the Federal Interagency LEP website.
Former Hawaii Couple Indicted on Tax and Prostitution-Related ChargesRead the Press Release
HONOLULU – A federal grand jury indicted Michael Paul Ernst, age 43, and Khemwika Ernst, age 38, former residents of Oahu, on March 11, 2015, for one count of conspiring to use interstate commerce to distribute proceeds of prostitution, two counts of using interstate commerce to distribute proceeds of prostitution, one count of conspiracy to defraud the United States in the collection of income taxes, and two counts of filing a false tax return.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the indictment alleges that Khemwika Ernst earned money as a prostitute working in Hawaii and deposited her earnings into an account which she jointly controlled with Michael Paul Ernst, her husband. He would then transfer the funds to a mainland bank he controlled. Khemwika Ernst also sent the money she earned via a package delivery service to New Jersey, where the funds were deposited into bank accounts Michael Paul Ernst controlled.
The indictment further alleges that in 2009, 2010, 2011, 2012, 2013, and 2014, Michael Paul Ernst and Khemwika Ernst filed joint federal income tax returns that did not disclose the income earned by Khemwika Ernst. They were specifically charged for filing false returns for substantially underreporting their income on federal tax returns for 2008 and 2009.
If convicted, Michael Paul Ernst and Khemwika Ernst, face up to five years imprisonment for each count of conspiracy and up to three years imprisonment for filing false returns. The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The investigation of this case was jointly conducted by the Internal Revenue Service -- Criminal Investigation, Homeland Security Investigations, Naval Criminal Investigative Service, and the Defense Criminal Investigative Service. The prosecution is being handled by Assistant U.S. Attorneys Leslie E. Osborne, Jr. and Andrea W. Hattan.
Former Corrections Officer Receives 97-Month Prison SentenceRead the Press Release
HONOLULU – Former corrections officer Feso Malufau, age 55, was sentenced today by U.S. District Judge Leslie E. Kobayashi to 97 months imprisonment on charges that he conspired with the USO Family prison gang to obtain and smuggle methamphetamine and other contraband into Halawa Correctional Facility. A federal jury found Malufau guilty of racketeering on October 10, 2014, following a nine-day jury trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information presented during the trial, other conspirators paid Malufau thousands of dollars to smuggle drugs, including methamphetamine, and cigarettes into prison and deliver them to USO gang members. In rendering the sentence, Judge Kobayashi addressed the dangers of injecting methamphetamine into the “powder keg” of a prison facility. As reasons for the length of the sentence, she pointed to Malufau’s abuse of the public trust (as a sergeant), his endangerment of the lives of his co-workers and vulnerable prison inmates, and his contributions to emboldening the powerful USO Family gang. Judge Kobayashi described the evidence against him at trial as “overwhelming,” and expressed a desire for the sentence to send a message to others considering engaging in similar behavior that it is not worth the risk.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, the State of Hawaii Department of Public Safety, and the Honolulu Police Department. Assistant United States Attorneys Thomas J. Brady and Jill Otake prosecuted this case.
Former Army Soldier Sentenced to Life in Prison for Murder of his Five-Year-Old DaughterRead the Press Release
WASHINGTON – An Army soldier was sentenced to life in prison without the possibility of parole today for murdering his five-year-old daughter, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
Naeem Williams, 34, was sentenced today by U.S. District Judge J. Michael Seabright of the District of Hawaii. On June 27, 2014, a federal jury in Honolulu found Williams guilty of beating his daughter, Talia Williams, to death at the family’s residence on Wheeler Army Airfield in Honolulu.
The jury also convicted Williams of participating, along with his wife, Delilah Williams, in a pattern and practice of assault and torture from December 2004 until July 16, 2005, that resulted in Talia’s death. In addition, Williams was convicted of obstructing justice and making false statements to Army Criminal Investigation Division agents on the night of his arrest in July 2005.
The evidence presented at trial demonstrated that Naeem Williams and his wife beat Talia almost daily. Naeem Williams testified that the abuse was aimed at disciplining his daughter for bathroom accidents and was exacerbated due to frustrations he was experiencing in his marriage. The evidence indicated that the physical abuse included punching Talia repeatedly, commanding her to eat her own feces, depriving her of food, requiring her to do strenuous exercises and then beating her when she was unable to continue, and using duct tape to bind her to a bed post where she was whipped with a belt. In the hours preceding her death, Naeem Williams struck Talia and her head slammed backwards against the floor. Talia then appeared to have a seizure.
Delilah Williams pleaded guilty to first-degree felony murder, agreed to testify against her husband and was sentenced to 20 years in prison.
This case was investigated by the FBI and the Army Criminal Investigation Division, and was prosecuted by Trial Attorney Steven D. Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii.
California Man Convicted of Methamphetamine DistributionRead the Press Release
HONOLULU – After a nine-day trial and less than one day of deliberation in United States District Court, a federal jury on Friday, January 30, found California resident Alan L. Mapuatuli, age 44, guilty of distribution of crystal methamphetamine, possession with intent to distribute crystal methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Mapuatuli faces a mandatory term of life imprisonment without parole when he is sentenced by United States District Judge Derrick K. Watson.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, Mapuatuli was convicted as the result of an undercover transaction between Mapuatuli and an informant involving a pound of methamphetamine. That transaction was monitored and recorded by federal agents. Based on information developed in the investigation, Mapuatuli was stopped as he drove away from the transaction. When his vehicle was searched, agents found the cellphone he had used to communicate with the informant, a black Adidas backpack containing six ounces of crystal methamphetamine, $15,975.00 in U.S. currency, and a loaded, .45 caliber pistol, and a leather bag which contained an additional pound of crystal methamphetamine.
The prosecution was the result of an investigation by Homeland Security Investigations/Immigration and Customs Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Assistant United States Attorneys Jonathan M. F. Loo and Michael K. Kawahara.
Matson to Pay $1 Million for Molasses SpillsRead the Press Release
HONOLULU –Matson Terminals, Inc., a Hawaii corporation, was sentenced by U.S. Magistrate Judge Richard L. Puglisi today to pay a $400,000 fine plus restitution of $600,000 based on previously entered guilty pleas to two criminal charges of unlawfully discharging molasses into Honolulu Harbor. By the terms of the plea agreement filed in connection with the case, the restitution would be divided equally between the Waikiki Aquarium to support Coral Programs and Invasive Algae Clean-ups and Sustainable Coastlines Hawaii to inspire local communities to care for coastlines through beach clean-ups.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information provided to the court, Matson Terminals, which loaded molasses from storage tanks into ships in Honolulu Harbor, discharged approximately 233,000 gallons of molasses into the Harbor without authorization from at least September 9, 2013, continuing to September 10, 2013. Matson had been aware of a State of Hawaii Department of Transportation report dated July 31, 2012, that the pipeline from which the discharge occurred was leaking molasses. The discharge caused or contributed to the death of approximately 25,000 fish in the harbor.
The prosecution resulted from an investigation conducted by the Environmental Protection Agency. Assistant United States Attorneys Leslie E. Osborne, Jr. and Marshall H. Silverberg handled the prosecution.
Former Honolulu Police Officer Sentenced to Prison for Extortion Scheme Against Local BusinessRead the Press Release
HONOLULU – United States District Judge Derrick K. Watson today sentenced Roddy Takao Tsunezumi, age 38, a former Honolulu Police Department (HPD) officer, to 33 months in prison. Tsunezumi pled guilty in July 2014 to interfering with commerce by threats in an extortion scheme aimed at a local Honolulu business.
Florence T. Nakakuni, U.S. Attorney for the District of Hawaii, said that according to information produced to the court, Tsunezumi joined with codefendant Jeremy Javillo to extort $15,000 from a local Honolulu business by attempting to convince the owners that they would be kidnapped and/or robbed if they did not hire a protection business offered by Javillo. The owners of the business had reported an apparent legitimate threat they received to Tsunezuni in his role as an HPD officer. Instead of properly investigating or referring the threat through normal police channels, Tsunezumi arranged for one of the owners to meet with his associate, Javillo, who Tsunezumi told them could arrange protection for them. In order to coerce the owners to employ this protection service, a series of threatening text messages were then sent anonymously to the business owners.
Javillo, who also pled guilty, is expected to be sentenced tomorrow by Judge Watson.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Woman Convicted of Methamphetamine DistributionRead the Press Release
HONOLULU – After a six-day trial in United States District Court, a federal jury today found Malia Elena Arciero, age 33, guilty of one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, two counts of distribution and possession with intent to distribute 50 grams or more of methamphetamine, and one count of distribution of some quantity of methamphetamine. Arciero faces up to life in prison with a mandatory minimum ten-year term of imprisonment on the first three counts and up to 20 years imprisonment on the fourth count when she is sentenced on May 4, 2015, before Chief U.S. District Judge Susan Oki Mollway.
United States Attorney Florence T. Nakakuni said that according to the evidence presented at trial, on April 30, 2013, Arciero had approximately one pound, four ounces of methamphetamine in her vehicle, one pound of which she was then in the process of delivering to one of her customers. Earlier in April, Arciero had provided a methamphetamine sample, which was later distributed by another person on April 20, and also supplied two ounces of methamphetamine on April 24, which was then sold by another person.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations. Assistant U.S. Attorney Michael Kawahara prosecuted this case.