District of Hawaii
Press releases recorded for this federal judicial district.
Clare E. Connors Sworn in as United States AttorneyRead the Press Release
HONOLULU – Clare E. Connors today took the oath of office to become the United States Attorney for the District of Hawaii. USA Connors was nominated by President Joseph Biden on September 28, 2021 and confirmed by the U.S. Senate on December 7. She took the oath of office from Chief United States District Judge J. Michael Seabright.
“I am grateful to return to this office with the opportunity to lead its efforts in serving the Hawaii community,” said USA Connors. “We will continue to protect the interests of the United States and all the people and organizations we represent.”
As U.S. Attorney, USA Connors is the top-ranking federal law enforcement official in the District of Hawaii, which consists largely of the State of Hawaii but also includes some areas in the Pacific outside Hawaii. She oversees a staff of approximately 60 employees, including 28 attorneys and, presently, 29 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to national security, drug trafficking, public corruption, child exploitation, firearms, and violent crime. The office also initiates affirmative civil actions, defends the United States in civil cases and collects debts owed to the United States.
USA Connors was raised in Honolulu and graduated from Punahou School. Until this appointment, she had been serving as the Attorney General of the State of Hawaii since January 3, 2019. She previously was an Assistant U.S. Attorney in the District of Hawaii from 2004 to 2011, and a Trial Attorney in the Tax Division of the Department of Justice from 2003 to 2004. After leaving the U.S. Attorney’s Office, she was an attorney at the Honolulu law firm of Davis Levin Livingston from 2011 to 2019.
USA Connors received her J.D. in 2002 from Harvard Law School and her B.A. in 1996 from Yale College. She is a member of the Hawaii State Bar Association.
Arizona Man Receives Three Years in Prison for CyberstalkingRead the Press Release
HONOLULU – Micah Austin Goodale, 27, of Queen Creek, Arizona was sentenced today in federal court by Chief U.S. District Judge J. Michael Seabright to 36 months imprisonment plus three years of supervised release for cyberstalking. Goodale pleaded guilty to a single count indictment on July 7, 2021.
According to court documents and information presented at sentencing, Goodale had previously been in a relationship with the victim, an adult female, and during that time, Goodale had recorded sexually explicit and graphic videos of the victim. Sometime after their relationship had ended, Goodale uploaded and published the sexually explicit videos onto a website that hosts adult pornographic content for free public streaming. Alongside the videos on the pornographic website, Goodale added the victim’s full name, phone number, and address, and included comments inviting viewers to harass the victim.
On or about November 13, 2019, Goodale signed onto a Facebook social media account that belonged to the victim, who then resided in the District of Hawaii. Goodale then posted links to the sexually explicit videos that featured the victim on her Facebook account for everyone in her social network to view. Subsequently, Goodale also created a Twitter profile using the victim’s name and likeness and posted additional sexually explicit content featuring the victim there. In addition, Goodale sent harassing messages to the victim using a variety of electronic means, both directly and on public messaging boards.
“Cyberstalking and revenge pornography are just new forms of harassment and intimidation that have been made possible by advancing social media technology,” stated Acting U.S. Attorney Judith A. Philips. “The digital nature and global reach of social media present unprecedented potential for harm, and criminals who abuse these new technologies to unlawfully harass and intimidate others in substantial ways will be brought to justice.”
"What Micah Goodale did is horrific, and the impact on the victim is immeasurable," said Federal Bureau of Investigation Special Agent in Charge Steven Merrill. “By using online tools to scare and disrupt the victim's life, the defendant tormented and caused substantial distress to the victim. While today’s sentencing cannot erase that harm, it ensures he will remain behind bars for a very long time, unable to victimize anyone else. This sentencing is a success in the fight against those who exploit the vulnerable and illustrates our dedication to bring these criminals to justice. The FBI will continue to hold accountable those who engage in such conduct and will never stop working to put cyberstalkers like him behind bars.”
The investigation that led to the indictment was led by the FBI. Assistant U.S. Attorney Gregg Paris Yates is handling the prosecution.
Former Maui Police Officer Receives 30 Months in Prison for Soliciting Sexual Relationship for Official ActsRead the Press Release
HONOLULU – United States District Judge Leslie E. Kobayashi today sentenced Brandon Charles Saffeels, 36, a resident of Maui and former Maui Police Department (MPD) officer, to 30 months in prison for public corruption in the form of honest services wire fraud. The indictment to which Saffeels pled guilty in May 2021 alleges that he engaged in a bribery scheme wherein he solicited a sexual relationship with a female motorist in exchange for an official act as an MPD officer.
According to court documents and information provided in court, in July 2019, then-MPD Officer Saffeels arrested a woman ("Individual A") for operating a motor vehicle while under the influence of an intoxicant, and, after she was released from custody, Saffeels began communicating with Individual A over the phone and through text messages. Among other things, Saffeels told Individual A that he would help her to beat the state case being brought against her by the Prosecuting Attorney for the County of Maui. Saffeels explained that he would provide perjured testimony at her trial so that the court would throw it out or the jury would find in her favor. However, Saffeels told Individual A that she would have to meet in person for him to help her. At one point during the course of their communications, he invited her to come to his house and told her to bring clothes.
Acting U.S. Attorney for the District of Hawaii Judith A. Philips said: "Brandon Saffeels betrayed our expectation that law enforcement officers will not take advantage of their authority for personal benefit. This prosecution demonstrates our determination to hold public officials accountable for criminal abuse of their positions."
FBI Special Agent in Charge Steven Merrill said: "The cornerstone of the public’s trust in law enforcement relies on the expectation that each person who takes the oath to protect and serve the public will do so with integrity. Today, former Officer Saffeels was sentenced for violating that trust. I’m proud of our team who worked collaboratively after becoming aware of concerns regarding the former officer’s conduct. They exemplify our commitment to ensure all public servants are worthy of the public’s trust and confidence."
The FBI conducted the investigation resulting in this conviction. Assistant U.S. Attorney Mohammad Khatib is handling the prosecution.
Honolulu Bookkeeper Indicted for $1.2 Million Fraud and Money LaunderingRead the Press Release
HONOLULU – Paul Henri Marie Harleman, 34, of Honolulu, was indicted today by a federal grand jury on six counts of wire fraud and seven counts of money laundering. He was arrested on April 23, 2021, and previously charged by criminal complaint. Upon motion of the government, Harleman has been detained pending trial since his arrest.
Judith A. Philips, Acting United States Attorney for the District of Hawaii, announced that the indictment alleges that while Harleman was working as a contract bookkeeper, he devised two fraud schemes to obtain money from three of his clients. In the first scheme, from July 2018 to May 2020, Harleman allegedly formed a limited liability company with a name nearly identical to the name of a significant vendor to one of his clients, and then charged the client’s credit card for more than $146,000 in fraudulent invoices. In the second scheme, from September 2019 to his arrest, Harleman allegedly transferred more than $1,064,000 in a series of payments disguised as payroll from two of his clients to Harleman’s limited liability company. According to the indictment, Harleman moved money fraudulently obtained from his three clients from his personal checking account to a personal investment account, resulting in the money laundering charges.
"This office will continue to work with our law enforcement partners to root out and prosecute fraud and other economic crimes perpetrated against local businesses, non-profit entities, and individuals," stated Acting U.S. Attorney Philips.
"Today’s indictment shows IRS Criminal Investigation’s commitment to act when those in our communities are being taken advantage of and stolen from," said Bret Kressin, IRS Criminal Investigation Special Agent in Charge. "We will continue to be vigilant in protecting the public against fraud and theft."
"Financial crimes are a top priority for HSI, particularly when hardworking people and small businesses are the victims," said John F. Tobon, Special Agent in Charge, Homeland Security Investigations. "Our agents will continue to investigate and seek out the perpetrators of these kinds of illegal and complex financial schemes."
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by Internal Revenue Service Criminal Investigation and Homeland Security Investigations of the Department of Homeland Security. Assistant United States Attorney Craig S. Nolan is prosecuting the case.
Six Individuals in Hawaii Charged with Conspiring to Defraud the IRS and Other Fraud OffensesRead the Press Release
Three individuals were arrested this week in the District of Hawaii on conspiracy to defraud the IRS and other fraud charges.
Marciaminajuanequita Dumlao, Elvah Miranda and Daniel Miranda were arrested and made their initial appearances before U.S. Magistrate Judge Wes Reber Porter of the U.S. District Court for the District of Hawaii. A federal grand jury in Honolulu, Hawaii, returned a 45-count superseding indictment on Sept. 9 charging Rosemarie Lastimado-Dradi, Dumlao, Elvah Miranda, Daniel Miranda, Lazerrick Lawrence and Danitta Ross Morton with conspiring to defraud the United States. Additionally, Lastimado-Dradi was charged with aiding and assisting in the preparation of a false tax return, and Daniel and Elvah Miranda and Dumlao were charged with filing false tax returns and with making false statements under oath in a bankruptcy proceeding. The superseding indictment also charged Lastimado-Dradi, Dumlao and Elvah Miranda with money laundering.
According to the superseding indictment, from at least January 2015 through September 2018, the defendants conspired to defraud the IRS. As part of the tax fraud scheme, the conspirators allegedly filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS allegedly issued refunds totaling over $1 million. To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators allegedly created trusts, opened new bank accounts in the name of business entities and the trusts, and transferred the criminal proceeds between the accounts to conceal the funds from the IRS. Lawrence also allegedly filed retaliatory liens on behalf of Dumlao and the Mirandas against an IRS employee assigned to recover the fraudulently obtained refunds. The superseding indictment further alleges that Lastimado-Dradi, Dumlao and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions.
Lawrence and Ross Morton were arrested on Sept. 15 and were arraigned on Sept. 23 before U.S. Magistrate Judge Rom A. Trader of the U.S. District Court for the District of Hawaii.
If convicted, each of the six individuals charged face a maximum sentence of five years for conspiracy to defraud the United States. Lastimado-Dradi, Dumlao and Elvah Miranda each face a maximum sentence of 10 years in prison for each count of money laundering. The Mirandas and Dumlao each face a maximum sentence of three years for each count of filing a false tax return and a maximum sentence of five years for each count of making false statements under oath in a bankruptcy proceeding. Lastimado-Dradi faces a maximum sentence of three years for each count of aiding and assisting in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Defendants Charged with Conspiring to Defraud the IRS and Other Fraud OffensesRead the Press Release
HONOLULU – Three defendants were arrested this week in Hawaii on conspiracy to defraud the IRS and other fraud charges. Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda were arrested and made their initial appearances before U.S. Magistrate Judge Wes Reber Porter of the U.S. District Court for the District of Hawaii. A federal grand jury in Honolulu, Hawaii, returned a 45-count superseding indictment on September 9, 2021 charging Rosemarie Lastimado-Dradi, Dumlao, Elvah Miranda, Daniel Miranda, Lazerrick Lawrence, and Danitta Ross Morton with conspiring to defraud the United States. Additionally, Lastimado-Dradi was charged with aiding and assisting in the preparation of a false tax return, and Daniel and Elvah Miranda and Dumlao were charged with filing false tax returns and with making false statements under oath in a bankruptcy proceeding. The superseding indictment also charged Lastimado-Dradi, Dumlao, and Elvah Miranda with money laundering.
According to the superseding indictment, from at least January 2015 through September 2018, the defendants conspired to defraud the Internal Revenue Service (IRS). As part of the tax fraud scheme, the conspirators allegedly filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS allegedly issued refunds totaling over $1 million. To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators allegedly created trusts, opened new bank accounts in the name of business entities and the trusts, and transferred the criminal proceeds between the accounts to conceal the funds from the IRS. Lawrence also allegedly filed retaliatory liens on behalf of Dumlao and the Mirandas against an IRS employee assigned to recover the fraudulently obtained refunds. The superseding indictment further alleges that Lastimado-Dradi, Dumlao, and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions.
Lawrence and Ross Morton were arrested on September 15 and were arraigned on September 23 before U.S. Magistrate Judge Rom A. Trader of the U.S. District Court for the District of Hawaii.
If convicted, each of the six individuals charged face a maximum sentence of five years for conspiracy to defraud the United States. Lastimado-Dradi, Dumlao, and Elvah Miranda each face a maximum sentence of ten years in prison for each count of money laundering. The Mirandas and Dumlao each face a maximum sentence of three years for each count of filing a false tax return and a maximum sentence of five years for each count of making false statements under oath in a bankruptcy proceeding. Dradi faces a maximum sentence of three years for each count of aiding and assisting in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Returned After Investigation Involving Seizure of 16.4 Kilograms of Methamphetamine, 3.14 Kilograms of Pills Containing Fentanyl, $400,000 in CashRead the Press Release
HONOLULU – A federal grand jury returned an indictment today charging Courtney Gene Jeter, 61, Janet Pauline Nelson, 62, and David Abraham Monalim, 46, with conspiring to distribute and possess with intent to distribute (1) 50 grams or more of methamphetamine; (2) 400 grams or more of a mixture or substance containing a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, commonly known as fentanyl; (3) 100 grams or more of a mixture or substance containing a detectable amount of heroin; and (4) 500 grams or more of a mixture or substance containing a detectable amount of cocaine. Jeter and Nelson were previously arrested pursuant to criminal complaints containing related charges, on September 30, 2021, and October 1, 2021, respectively. Jeter was ordered detained earlier today, and Nelson’s detention hearing is scheduled for tomorrow.
The indictment also charges Jeter with four counts of distribution of 50 grams or more of methamphetamine, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of felon in possession of a firearm and ammunition; and one count of money laundering. Nelson is also charged with one count of possession with intent to distribute 50 grams or more of methamphetamine and a mixture or substance containing a detectable amount of cocaine, and Monalim is also charged with one count of possession with intent to distribute five grams or more of methamphetamine.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, said that according to information presented in court, on the date of Jeter’s arrest, law enforcement seized approximately 16.4 kilograms of methamphetamine, 3.14 kilograms of suspected counterfeit oxycodone pills containing fentanyl, one kilogram of heroin, over two kilograms of cocaine, over 400 rounds of ammunition, two loaded handguns, and over $400,000 in cash.
If convicted, (1) each defendant faces a minimum of ten years and up to life in prison and a fine of up to $10,000,000, on the conspiracy charge; (2) Jeter faces the same penalties on the four counts of distribution of 50 grams or more of methamphetamine, a mandatory five years’ imprisonment that must run consecutive to any other sentence imposed on possession of a firearm in furtherance of a drug trafficking crime, up to ten years in prison for possession of the ammunition, and up to 20 years in prison and a fine of up to $500,000 or twice the value of the property involved in the transaction for money laundering; (3) Nelson faces the same potential penalties as the conspiracy charge on her other charge; and (4) Monalim faces a mandatory minimum of five years’ imprisonment and a fine up to $5,000,000 on his other charge.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case is the result of an investigation conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation, and assisted by the Honolulu Police Department.
It is being prosecuted by Assistant U.S. Attorneys Margaret Nammar and Craig Nolan.
Waianae Man Sentenced to 18 Years in Prison for Methamphetamine TraffickingRead the Press Release
HONOLULU – In federal court today, District Judge Jill A. Otake sentenced Samuel K. Kapoi, 35, of Waianae, Hawaii, to 18 years’ imprisonment to be followed by five years of supervised release for leading a methamphetamine trafficking conspiracy on the islands of Oahu and Hawaii. Kapoi pled guilty on May 25, 2021, to conspiring to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Judge Otake ordered Kapoi, who remains on pretrial release, to self-report to the Bureau of Prisons on January 4, 2022 to begin serving his sentence.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, stated that according to information presented in court, Kapoi was responsible for distributing over 26 pounds of methamphetamine over approximately nine months, and possessed an unregistered AR-15 rifle, with no serial number, in connection with the offense. Judge Otake described Kapoi’s conduct as “injecting poison” into communities that lack the resources to deal with methamphetamine addictions, and emphasized his conduct was “not a victimless crime.”
“Methamphetamine remains the dominant drug of abuse in Hawaii, and this conviction and sentence demonstrate the price methamphetamine traffickers can pay for continuing to pursue this path to profit,” said Acting U.S. Attorney Philips.
“This significant sentence is the result of many hours of difficult and dangerous work carried out by brave law enforcement officers for the benefit of our society,” said John F. Tobon, Special Agent in Charge for Homeland Security Investigations (HSI) Honolulu. “HSI will continue to identify and investigate those who endanger our communities.”
The case was investigated by Homeland Security Investigations and the Hawaii County Police Department. It was prosecuted by Assistant U.S. Attorneys Margaret Nammar and Wayne Myers.
Two defendants charged in tax conspiracyRead the Press Release
HONOLULU – A federal grand jury returned a 15-count indictment on July 15, 2021, which was unsealed on September 9, 2021, charging two individuals with conspiring to defraud the United States, filing false tax returns, and money laundering.
According to the indictment, from 2015 to 2019, Hannah Heart, Sook Young Jung and another individual allegedly conspired to defraud the United States by seeking fraudulent refunds from the Internal Revenue Service (IRS) based on false claims that they had paid sizeable tax withholdings. The conspirators allegedly filed a false 2014 amended individual income tax return that claimed a refund of $464,904 and a false 2015 individual income tax return that claimed a refund of $1,134,902. The indictment further alleges that the conspirators took steps to prevent the IRS from recovering the fraudulently obtained refunds, and that Heart and Jung laundered the fraudulently obtained refunds through a series of financial transactions.
Jung was arrested on September 4 and made her initial court appearance on September 7 before U.S. Magistrate Judge S. Kate Vaughan of the U.S. District Court for the Western District of Washington. Jung’s matter was ordered transferred to the U.S. District Court for the District of Hawaii.
Heart was arrested on September 18 and made her initial court appearance on September 21 before U.S. Magistrate Judge Rom Trader of the U.S. District Court for the District of Hawaii.
If convicted, Heart and Jung each face a maximum sentence of ten years in prison for each count of money laundering. Heart and Jung each face a maximum sentence of three years for filing a false tax return and a maximum sentence of five years for conspiracy to defraud the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Registered sex offender sentenced to 11 years in prison for attempted sexual enticement of 13 year-old and possession of child pornographyRead the Press Release
HONOLULU – Senior District Judge Susan Oki Mollway sentenced Neal Both-Magnisi, 39, of Honolulu, Hawaii, to 11 years in prison, to be followed by five years of supervised release, for attempting to entice a 13 year-old minor to engage in unlawful sexual activity, and for possessing child pornography today in United States District Court. He will also pay $6,000 in restitution to two identified victims and a $10,000 special assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
Acting U.S. Attorney Judith A. Philips stated that, according to court documents and information presented in court, Both-Magnisi, a registered sex offender, created a profile on a mobile device application designed for dating. On March 19, 2019, Both-Magnisi used the application to communicate with a user whose profile featured a photograph of a 13 year-old boy, which stated that he was “Younger than you think.” Between March 19 and March 24, 2019, Both-Magnisi engaged in numerous text message and online chat communications with the other user, who represented to Both-Magnisi that he was 13 years old, but who was actually an undercover law enforcement agent. On March 24, 2019, Both-Magnisi arranged to meet the boy in person at a shopping center in Kapolei, Hawaii to engage in sexual activity. Both-Magnisi then traveled to the agreed-upon location and was arrested.
Information provided to the court also reflected that law enforcement agents conducted a search of Both-Magnisi’s home. There, the agents discovered and seized a laptop computer, on which they discovered 93 video files and 224 images of child pornography, some of which appeared to feature children as young as eight years old.
“This prosecution is the successful result of a coordinated effort by several federal and state agencies to fight the threat of child predators using mobile device applications and social media to prey upon children in Hawaii,” stated Acting U.S. Attorney Philips. “We are making concerted efforts to protect children, among the most vulnerable members of our community, from predators employing various forms of electronic media.”
“Protecting our keiki is one of our top priorities at Homeland Security Investigations in Honolulu,” said Special Agent in Charge John F. Tobon. “I hope this sentence sends a very clear message to everyone in the community that we will track down predators to keep our children safe.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by Homeland Security Investigations (HSI) and the Hawaii Internet Crimes Against Children Task Force (ICAC) and prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
Two Defendants Indicted for Oahu Game Room Robbery, Drug Trafficking, and "Ghost Gun" PossessionRead the Press Release
HONOLULU – A federal grand jury returned an indictment yesterday charging Makoa K.F. Wilson, 26, and Jessica R. Lorrin, 30, both residents of Oahu, with the gunpoint robbery of an Oahu game room establishment. The indictment also charges Wilson and Lorrin with possession of 50 grams or more of methamphetamine with intent to distribute; with possession of a privately made firearm—commonly referred to as a “ghost gun”—in furtherance of that drug trafficking crime; and with possession of ammunition after having each sustained a felony conviction.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, said that according to the indictment, Wilson and Lorrin committed an armed robbery at an illegal game room on Keaulana Avenue on July 15, 2020. Acting U.S. Attorney Philips emphasized the continued commitment of the U.S. Attorney’s Office to combating illegal game room activity, as well as the robberies, drug trafficking, firearm offenses, and other crimes frequently associated with them.
If convicted, each defendant faces a maximum sentence of 20 years in prison on the robbery charge, a minimum of ten years and up to life in prison on the methamphetamine trafficking charge, a mandatory five years in prison consecutive to the term of imprisonment on the drug charge, and up to ten years in prison for possession of the ammunition. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Philips recognized the investigative work of Homeland Security Investigations (“HSI”) and the assistance of the Honolulu Police Department (“HPD”) that resulted in this indictment. Assistant U.S. Attorney Micah Smith is handling the prosecution.
Justice Department Enters Agreement to Ensure Public Transportation for Passengers with Disabilities in the County of HawaiiRead the Press Release
HONOLULU – The Justice Department entered into a settlement agreement with the County of Hawaii and the County’s Mass Transit Agency (MTA) to resolve an investigation conducted under Title II of the Americans with Disabilities Act (ADA).
Under the agreement, the County and MTA must make their transit services, including Hele-On, the buses used by the majority of riders, accessible to passengers with disabilities. The agreement requires the County and MTA to ensure that passengers with disabilities have lifts to board buses; paratransit users are provided timely pick-ups and drop-offs; and bus stops are accessible. In addition, the County and MTA must ensure that transit system drivers undergo ADA training and that disability-related complaints are addressed fairly. The County and MTA also must report to the department regarding their compliance with these requirements. Both the County and MTA cooperated in this matter.
“Ensuring the availability of public transit for individuals with disabilities is a key promise of the Americans with Disabilities Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Accessible transportation is critical to independence and engagement in civic life, and this agreement helps to make that promise a reality.”
“This agreement will remove accessibility barriers in transit for countless individuals with disabilities living on the Big Island,” said Acting U.S. Attorney Judith Philips for the District of Hawaii. “Our office strongly supports efforts to improve access and inclusion under the ADA.”
This matter was handled by the Disability Rights Section of the Department’s Civil Rights Division. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit the ADA website at http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Kauai Woman Pleads Guilty to Multiple Wire Fraud Schemes and Aggravated Identity TheftRead the Press Release
HONOLULU – Leihinahina Sullivan, 49, of Lihue, Kauai, pleaded guilty yesterday before Chief United States District Judge J. Michael Seabright to three counts of wire fraud and one count of aggravated identity theft related to multiple long-running fraudulent schemes. Sentencing is set before Chief Judge Seabright on December 2, 2021.
Court documents and information provided in court described three fraud schemes Sullivan perpetrated. Beginning as early as January 31, 2011, through at least August 23, 2017, Sullivan devised a tax fraud scheme to obtain tax refunds from the IRS and the State of Hawaii that she and the other individuals were not entitled to receive by filing false returns for herself and for others. The false federal and state tax returns included fictitious expenses, claims for credits, and other items Sullivan knew were false when made. Sullivan did not review these tax returns with the individuals before she filed the tax returns in their names.
Sullivan transferred the fraudulent tax refunds into several bank accounts that she had access to and controlled, including her personal bank accounts and those of friends and family members, and a non-profit entity that she controlled. Sullivan then spent these tax refunds on personal expenses for herself, her family, and her friends.
The second scheme involved educational fraud and began January 8, 2011 and lasted through at least February 1, 2017. For college-bound students Sullivan prepared and submitted false student loan, grant, scholarship, and financial aid applications and documents that requested money from public and private educational-based financial assistance and aid providers. Sullivan transferred some money from students’ financial aid applications to her personal bank accounts and other bank accounts she controlled, then spent the money on her own personal and other expenses, such as for home construction, retail purchases, and her bills.
In the last fraud scheme Sullivan used personal identification information of many individuals, such as social security numbers and birth dates, to apply for and use credit cards in other peoples’ names without their authorization. In one instance, she submitted an electronic credit card application for an individual whom she knew died on the same day she sent in the application.
Sullivan faces a maximum penalty of 20 years imprisonment and a fine of not more than $250,000 as to each of the three counts of wire fraud, and a mandatory sentence of two years in prison in addition to any other sentence imposed by the court and a fine of up to $250,000 on aggravated identity theft when she is sentenced. Chief Judge Seabright will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Judith A. Philips and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Corinne Kalve made the announcement today.
Acting U.S. Attorney Philips said: “Sullivan’s fraud was wide-ranging and lasted for years. Her web of lies and manipulation ends with this case. She will be held accountable for the damage she caused by her fraudulent schemes and the money she stole from friends, family, individuals in her community, and public and private institutions.”
“Sullivan admitted to defrauding her community and taking money from taxpayers, students, and financial institutions for her own personal profit,” said Acting Special Agent in Charge Corinne Kalve of IRS-CI. “This guilty plea is a reminder that IRS-CI will continue to follow the money and investigate those who prey on their communities.”
This conviction is the result of an investigation led by IRS-CI and involving Department of Education, Office of Inspector General, and the FBI. Assistant U.S. Attorneys Rebecca A. Perlmutter and Mohammad Khatib of the District of Hawaii are prosecuting the case.
Woman Pleads Guilty to Unauthorized Removal and Retention of Classified MaterialRead the Press Release
A Hawaii woman pleaded guilty today to one count of knowingly removing classified information concerning the national defense or foreign relations of the United States and retaining it at an unauthorized location.
According to court documents, Asia Janay Lavarello, 31, of Honolulu, admitted to having removed and retained numerous classified documents, writings and notes relating to the national defense or foreign relations of the United States without authority. While working as an Executive Assistant for the U.S. Indo-Pacific Command in Hawaii, Lavarello accepted a temporary assignment working at the U.S. Embassy in the Philippines. There, she had access to classified computers and documents, and attended classified meetings as part of her official duties. Court documents list several specific instances in which Lavarello mishandled classified material of the United States.
According to her plea, on March 20, 2020, Lavarello removed classified documents from the U.S. Embassy in Manila. She took the classified documents to her hotel room where she hosted a dinner party later that evening. Among the guests were two foreign nationals. During the party, a co-worker discovered the documents, which included documents classified at the SECRET level. Lavarello’s temporary assignment in the Philippines was ultimately terminated due to her mishandling of SECRET classified documents.
After Lavarello returned to Hawaii, investigators executed a search warrant at her government workplace. In her desk, investigators found a notebook containing Lavarello’s handwritten notes of meetings she attended while working at the U.S. Embassy in Manila. The notes contained facts and information classified at the CONFIDENTIAL and SECRET levels. Investigators determined that Lavarello personally transported the documents to Hawaii, unsecured, and kept the classified notebook at an unsecure location until at least April 13, 2020.
Investigators also discovered that Lavarello included information from the classified notebook in a Jan. 16, 2020, email from her personal Gmail account to her unclassified U.S. Government email account. The information she transmitted over unsecure networks was classified at the SECRET level.
Lavarello pleaded guilty to the charge of unauthorized removal and retention of classified documents or material and faces up to five years in prison, three years of supervised release and a fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Naval Criminal Investigative Service (NCIS) are investigating the case.
Assistant U.S. Attorney Mohammed Khatib of the District of Hawaii and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Honolulu woman pleads guilty to unauthorized removal and retention of classified materialRead the Press Release
HONOLULU – Asia Janay Lavarello, 31, pleaded guilty today in the U.S. District Court for the District of Hawaii to one count of knowingly removing classified information concerning the national defense or foreign relations of the United States and retaining it at an unauthorized location. Chief U.S. District Court Judge J. Michael Seabright took Lavarello’s guilty plea and scheduled sentencing for November 4, 2021.
Lavarello, a Department of Defense employee, admitted to having removed and retained numerous classified documents, writings, and notes relating to the national defense or foreign relations of the United States without authority. While working as an Executive Assistant at the United States Indo-Pacific Command in Hawaii, Lavarello accepted a temporary assignment working at the U.S. Embassy in the Philippines. There, Lavarello had access to classified computers and documents, and attended classified meetings as part of her official duties. Court documents list several specific instances in which Lavarello mishandled classified material of the United States.
On March 20, 2020, Lavarello removed classified documents from the U.S. Embassy Manila. She took the classified documents to her hotel room where she hosted a dinner party later that evening. Among the guests were two foreign nationals. During the party, a co-worker at the U.S. Embassy Manila discovered the documents, which included documents classified at the SECRET level. Lavarello’s temporary assignment in the Philippines was ultimately terminated due to her mishandling of SECRET classified documents.
Around March 28, 2020, Lavarello returned to Hawaii. In June of that year, investigators executed a search warrant at her workplace at the United States Indo-Pacific Command. In her desk, investigators found a notebook containing Lavarello’s handwritten notes of meetings she attended while working at the U.S. Embassy Manila. The notes contained facts and information classified at the CONFIDENTIAL and SECRET levels. Investigators determined that Lavarello did not send the classified notebook via secure diplomatic pouch from the U.S. Embassy Manila to Hawaii, as required. Instead, she personally transported the documents to Hawaii, unsecured, and kept the classified notebook at an unsecure location until at least April 13, 2020.
Investigators also discovered that Lavarello included information from the classified notebook in a January 16, 2020 email from her personal Gmail account to her unclassified U.S. Government email account. The information she transmitted over unsecure networks was classified at the SECRET level.
The charge of unauthorized removal and retention of classified documents or material provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. According to a plea agreement filed in the case, the United States will not file charges against Lavarello related to false statements she made to the Federal Bureau of Investigation and the Naval Criminal Investigative Service. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Judith A. Philips; Acting Assistant Attorney General Mark Lesko; Steven B. Merrill, Special Agent in Charge of the Federal Bureau of Investigation, Honolulu Field Division; and Norman Dominesey, Special Agent in Charge of the Naval Criminal Investigative Service, Hawaii Field Office made the announcement today.
Acting U.S. Attorney for the District of Hawaii Judith A. Philips said: “Protecting the national security of the United States is our highest priority, and failing to adhere to the most basic security practices, as this defendant did, is contrary to this critical priority.”
“Government employees are entrusted with a responsibility to ensure classified information is properly handled and secured. Asia Janay Lavarello failed in her duty when she removed classified documents from the U.S. Embassy Manila,” said Special Agent in Charge Steven Merrill. “Today’s guilty plea is a direct result of the professional and thorough investigation conducted by the FBI and NCIS. We will always work together with our partners to keep our communities safe and bring perpetrators to justice.”
“The NCIS appreciates the opportunity to have worked in partnership with the FBI and the United States Attorney’s Office to bring this investigation to a successful conclusion,” said NCIS Special Agent in Charge Norman Dominesey. “For those entrusted with safeguarding our national security interests, this case underscores the far-reaching ramifications of violating that trust.”
This conviction is the result of a joint investigation between the FBI and NCIS. Assistant U.S. Attorney Mohammad Khatib and Trial Attorney Stephen Marzen of the Justice Department’s National Security Division are prosecuting the case.
Kailua man receives over 24 years in prison for drug trafficking and money launderingRead the Press Release
HONOLULU – United States District Judge Derrick K. Watson sentenced Justin K. Wilcox, aka Justin Kaanoi, aka Ali’i, 39, of Kailua, Hawaii, today to concurrent imprisonment terms of 295 months and 240 months for his roles in conspiracies to distribute methamphetamine and cocaine and commit money laundering, respectively. Wilcox previously pled guilty on August 5, 2019, to conspiracy to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine and 500 grams or more of cocaine and conspiracy to commit money laundering. Wilcox also received with five- and three-year concurrent terms of supervised release to follow imprisonment.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, stated that according to court documents and information presented in court, Wilcox was the Oahu leader and organizer of the drug conspiracy which operated in Hawaii and involved more than five members with drugs supplied by a Las Vegas, Nevada source. The sentencing court found Wilcox responsible for the possession and distribution of 3,880 grams of pure methamphetamine, or “ice,” and 1,393 grams of cocaine.
At the sentencing hearing, the court found that Wilcox utilized his Kailua clothing company, “Armed and Dangerous,” as a front business to launder cash drug proceeds. As a result, the court ordered Wilcox to pay a forfeiture money judgment of $127,000 for proceeds that Wilcox obtained as a result of his drug trafficking activities.
In addition to the seizure of 8.4 kilograms of methamphetamine and 1.39 kilograms of cocaine, federal law enforcement agents also seized over $160,000 in cash, two firearms, and ammunition over the course of the investigation.
A total of eight individuals were convicted for their participation in the drug conspiracy along with a ninth man who was convicted of related drug charges. All nine received sentences of 41 months imprisonment or greater, with five, including Wilcox, receiving sentences of over ten years, two of which exceeded 20 years.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigations Division. Assistant U.S. Attorneys Mark A. Inciong and Michael Albanese handled the prosecution.
China Resident Indicted for Laundering Millions of Fraud Proceeds Through Big Island PropertiesRead the Press Release
HONOLULU – A federal grand jury returned an indictment on June 10, 2021, charging Yao Zhungjun, 50, of Beijing, China, a former project manager at J.R. Simplot Company, an entity operating out of China, which had acquired the Jacklin Seed Company, a producer and marketer of grass seed and turfgrass based in Liberty Lake, Washington, with conspiracy to commit money laundering as part of multiple schemes to defraud Simplot, and route the proceeds through real estate developments in Hawaii.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, said that according to the indictment, Yao solicited grass seed orders at artificially inflated prices from Chinese customers and then negotiated kickback payments from those customers in exchange for rebate payments from Simplot. Christopher Claypool, Jacklin’s general manager, approved and Yao collected millions of dollars in kickbacks from just one Chinese grass seed distributor, Beijing Oasis, on more than $10 million in rebates Simplot paid to Beijing Oasis.
The indictment also alleges that Yao and Claypool conspired to defraud Simplot directly. Specifically, Claypool arranged for seller commissions purportedly owed to a European partner to be paid to Yao through a Citibank Hong Kong account in Yao’s wife’s name. Claypool directed the payment of more than $7.3 million in fraudulent commissions to this account from 2008 through 2014.
As part of the money laundering conspiracy for which Yao was indicted, he and Claypool then routed the proceeds of these schemes through at least six pieces of real estate on the Island of Hawaii. From not later than March 2010 and continuing through June 2016, Yao caused more than 55 wires, totaling more than $11.6 million, to be sent from accounts he controlled in Hong Kong to accounts at First Hawaiian Bank for use in the acquisition and development of six parcels under Claypool’s control. From 2010 through October 2018, Claypool developed and then sold those properties for more than $11.4 million and later transferred the proceeds to investments accounts at brokerage firm Edward Jones.
Claypool was separately charged and pleaded guilty to this conspiracy in the District of Oregon. Yao remains at large. If convicted, he faces a maximum sentence of ten years in prison, a fine of more than $20 million, and three years’ supervised release.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by IRS Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Ryan W. Bounds, a Special Assistant U.S. Attorney for the District of Hawaii.
Man Sentenced to 46 Months in Prison for Assault on Federal Law Enforcement OfficerRead the Press Release
HONOLULU – United States District Judge Derrick K. Watson sentenced Gary M. Griffith, 31, of Honolulu, Hawaii, today for one count of assault on a federal law enforcement officer, in violation of 18 U.S.C. § 111(a)(1). Griffith will serve 46 months imprisonment, with three years of supervised release to follow.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, stated that according to court documents and information presented in court, on September 13, 2019, defendant was driving a rental car on Nimitz Highway in the opposite direction of traffic when he came upon a Deputy U.S. Marshal operating his duty vehicle. The two vehicles stopped opposite each other with Griffith’s vehicle pointed in the wrong direction. After making a shooting motion with his hand in the direction of the Deputy, Griffith crossed the median and began driving in the correct direction. As the Deputy watched in his rear view mirror, Griffith once again crossed the median and drove opposite traffic. The Deputy turned his vehicle around and pursued with blue lights illuminated and reported Griffith to the Honolulu Police Department. During an extended pursuit, Griffith purposely rammed his rental car into the Deputy’s vehicle, and also struck and damaged vehicles belonging to bystanders. After being struck, the Deputy continued the pursuit and eventually apprehended Griffith, who was then arrested by HPD.
“As the Court observed during the sentencing hearing, the defendant’s crime was ‘egregious.’ The defendant put dozens of lives at risk, including those of the Deputy U.S. Marshal and innocent bystanders in cars and on foot. That no one was seriously hurt or killed was pure luck,” stated Acting U.S. Attorney Philips.
The case was investigated by the Federal Bureau of Investigation and the Honolulu Police Department with assistance from the Department of the Prosecuting Attorney of the City and County of Honolulu. It was prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Hawaii couple indicted in tax fraud schemeRead the Press Release
WASHINGTON – A federal grand jury in Honolulu, Hawaii, returned an indictment on May 13 charging a Hawaii husband and wife with conspiring to defraud the United States and filing a false tax return. The husband was also charged with five counts of money laundering.
The indictment charges that from 2015 to 2021, Michael Chock and Brigida Chock of Ewa Beach, Hawaii, along with an unnamed co-conspirator, prepared and filed a Form 1099-MISC reporting bogus tax withholdings, as well as a false 2014 amended individual income tax return that requested a refund of $225,327, based on those fraudulent withholdings. After receiving the false return, the IRS allegedly issued a refund to the Chocks. Later, when the IRS initiated collection activity, the Chocks allegedly took steps to prevent the IRS from retrieving the fraudulently obtained refund. The indictment further alleges that Michael Chock laundered the fraudulently obtained refund through a series of financial transactions using banks located in the District of Hawaii.
The defendants were arraigned today before U.S. Magistrate Judge Kenneth J. Mansfield of the U.S. District Court for Hawaii.
If convicted, Michael Chock faces a maximum sentence of 10 years in prison for each count of money laundering. The Chocks each face a maximum sentence of three years for filing a false tax return and a maximum sentence of five years for conspiracy to defraud the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Big Island man arrested on methamphetamine and firearm chargesRead the Press Release
HONOLULU – Jonathan Tai, 36, of Kurtistown, Hawaii, made his initial appearance yesterday in United States District Court in Honolulu on methamphetamine and firearm charges filed in a criminal complaint. United States Magistrate Judge Kenneth J. Mansfield ordered him detained pending a detention hearing on Thursday, May 20.
Judith A. Philips, Acting United States Attorney, said the appearance followed Tai’s arrest on May 14, 2021, at his residence in Kurtistown after execution of a search warrant for that location. According to court documents, law enforcement authorities recovered approximately 4,600 gross grams of a substance testing positive for methamphetamine from two mail parcels addressed to a post office box in Mountain View pursuant to a search warrant issued on May 4, 2021. No one picked up those parcels, but a review of video surveillance of the same post office showed an individual strongly resembling Tai previously picking up two other mail parcels, and Tai was also previously identified as an individual who received mail at the same post office box to which the searched mail parcels were addressed.
Law enforcement authorities obtained a search warrant for Tai’s Kurtistown residence and, on May 13, pursuant to that warrant, recovered 240 gross grams of a substance testing positive for methamphetamine, more than 2,600 rounds of ammunition, more than $100,000 in U.S. currency, and a bump-stock device allowing a shooter of a semi-automatic firearm to initiate a continuous firing cycle with a single pull of the trigger. Also recovered at the time of the search and Tai’s arrest were a semi-automatic handgun and five “ghost guns,” generally defined as unserialized firearms that are often sold through kits and assembled at home.
Tai is charged in the criminal complaint with one count of methamphetamine trafficking and one count of possessing the semi-automatic handgun during and in relation to the methamphetamine trafficking. If indicted and convicted on those charges, Tai faces a mandatory minimum term of imprisonment of ten years and a maximum penalty up to life imprisonment on the methamphetamine charge and, on the firearm charge, a mandatory term of five years in prison consecutive to the imprisonment on the drug charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Charged with Bribery Schemes for Official Acts at the Department of Planning and Permitting of the City and County of HonoluluRead the Press Release
HONOLULU, Hawaii – Today, the United District Court for the District of Hawaii unsealed Honest Services Wire Fraud charges against the following six individuals arising out of schemes in which employees of the Department of Planning and Permitting ("DPP") of the City and County of Honolulu took bribes in exchange for performing official acts at DPP:
• Wayne Inouye, 64, of Honolulu, a former Building Plans Examiner at DPP, in Cr. No. 21-00034 LEK (Indictment);
• Jocelyn Godoy, 58, of Pearl City, an employee of the Data Access and Imaging Branch at DPP, in Cr. No. 21-00036 DKW (Indictment);
• Jason Dadez, 42, of Honolulu, a Building Inspector at DPP, in Cr. No. 21-00037 DKW (Indictment);
• Jennie Javonillo, 71, of Waipahu, a former Building Plans Examiner at DPP, in Cr. No. 21-00038 DKW (Indictment);
• Kanani Padeken, 36, of Kaaawa, a Building Plans Examiner at DPP, in Cr. No. 21-00040 DKW (Information); and
• William Wong, 71, of Honolulu, an architect, in Cr. No. 21-00041 DKW (Information).
The Indictment against Mr. Inouye also charges him with one count of making a false material statement to the government.
Acting U.S. Attorney Judith A. Philips stated, "This Office is committed to prosecuting those who betray the public trust for personal gain with all available resources."
"Our citizens entrust their government with great authority and power. It is our responsibility to the communities we serve to represent them ethically and transparently," said Federal Bureau of Investigation Special Agent in Charge Eli S. Miranda. "The FBI will bring all its resources to bear and vigorously pursue criminals who attempt to defraud the American people and our institutions."
The charges in the Indictments and Informations are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation. The caseis being prosecuted by Assistant U.S. Attorneys Michael Nammar and Craig S. Nolan.
Former Kauai JROTC instructor arrested for sexual exploitation of former studentRead the Press Release
HONOLULU – VICTOR AGUILAR, a 65-year-old resident of Kauai, was arrested on two counts of sexual exploitation of a child under the age of 18 for the purpose of producing child pornography. Judith A. Philips, Acting United States Attorney for the District of Hawaii, John F. Tobon, Special Agent in Charge of the Honolulu Field Office of Homeland Security Investigations (“HSI”), and Todd Raybuck, Chief of the Kauai Police Department (“KPD”), announced that the charges were contained in a criminal complaint filed in federal court and unsealed today upon the arrest. AGUILAR will make his first court appearance in United States District court on March 29 2021,at 9:30 before United States Magistrate Judge Rom Trader.
The complaint and affidavit allege that AGUILAR was his victim’s Junior Reserve Officers’ Training Corps (“JROTC”) instructor, and that he sexually exploited the minor victim in his home, in his vehicle, and at the high school at which he worked. Also included in the information contained in those documents is the following:
Beginning in or around 1995, AGUILAR acted as a JROTC instructor at Waimea High School on Kauai, a position from which he recently resigned. The program at has included anywhere from 49 to 205 cadets, at times encompassing as much as 20 percent of the student population. One of AGUILAR’s former JROTC students was the victim in the complaint. Photographs and videos recovered from AGUILAR’s work-issued laptop and portable hard drive reveal that in 2020, AGUILAR sexually exploited the victim and created videos of this sexual exploitation, which videos form the basis for the federal criminal charges in the complaint. An examination of AGUILAR’s work-issued laptop and portable hard drive also revealed that AGUILAR compiled subfolders of students and/or former students of Waimea High School’s JROTC, which appear to date from in or about 2009 until recently, consisting mainly of images that appear to have been pulled from social media websites.
If indicted and convicted of the offenses in the complaint, the defendant would face a mandatory minimum of 15 years’ imprisonment and a statutory maximum of 30 years’ imprisonment on each count. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the sentencing judge. The complaint also notes that on or about March 11, 2021, AGUILAR was arrested on a state indictment, brought by the County of Kauai Office of the Prosecuting Attorney, charging him with having sexually assaulted a former student. The charges and information contained in the federal complaint and state indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty, which, as to the federal charges, also requires the filing of the charges in an indictment.
Acting U.S. Attorney Philips praised the outstanding investigative work of HSI and the Major Crimes Section and the Crime Scene and Laboratory Section of KPD. She also thanked the County of Kauai Office of the Prosecuting Attorney, Waimea High School, the State of Hawaii Department of Education Equity Specialist for the Kauai District, the State of Hawaii Department of Education, the Hawaii Department of Education JROTC Command, and the Hawaii Department of Human Services, Child Welfare Services for their assistance.
“Our main focus is the victims of these heinous crimes,” says Special Agent in Charge of HSI Honolulu John F. Tobon. “Prosecuting predators hopefully brings some comfort to those victimized and to the community in general.”
The State of Hawaii Department of Education’s Kauai District is working to identify individuals whose images were stored on AGUILAR’s devices or who otherwise may have been affected by AGUILAR’s conduct, and is preparing a letter that will be sent to notify those individuals. If you believe you or anyone else may have been affected, you may contact David Dooley, Equity Specialist, at (808) 379-5299, or at 3060 Eiwa Street, Room 305, Lihue, Hawaii 96766.
The prosecution is handled by Assistant U.S. Attorneys Micah Smith and Morgan Early.
U.S. Attorney Kenji M. Price ResignsRead the Press Release
HONOLULU, Hawaii – Today, U.S. Attorney for the District of Hawaii Kenji M. Price announced, “Last Friday, I sent a letter to the President offering my resignation, effective February 21, 2021. Serving as U.S. Attorney for the District of Hawaii—the chief federal law enforcement officer in the District—is a privilege that I will forever cherish. The career attorneys, professional staff, and contactors in my office do tremendous work day-in and day-out enforcing the law and defending the interests of the United States in civil litigation. Throughout the COVID-19 pandemic, they conducted (and continue to conduct) their affairs with the courage, character, and professionalism that exemplifies the finest traditions of the U.S. Department of Justice. I truly stand on the shoulders of giants, and look forward to hearing about the fantastic work that my office will continue to do in the months and years to come, working hand in glove with our state and local partners and the broader federal law enforcement community.”
Former Federal Aviation Administration employee sentenced for severing air traffic communicationsRead the Press Release
HONOLULU, Hawaii – A federal judge today sentenced Joelyn DeCosta, 48, of Honolulu, Hawaii, to two years of probation and a $5000 fine for willfully and maliciously interfering with the working and use of a communication system operated and controlled by the United States, in violation of Title 18, United States Code, Section 1362.
According to documents and information presented in court, DeCosta was an Airway Transportation Systems Specialist for the Federal Aviation Administration, and had worked for the F.A.A. for approximately 26 years. On January 4, 2019, she willfully and maliciously severed communications between Air Traffic Control in Honolulu and aircraft flying in U.S. airspace above and around Honolulu, in an area known as Sector 4, which covers flights between Oahu and Maui, Lanai, Moloka’i, Kaho’olawe, and the Big Island. The main and standby communication lines between Hawaii Air Traffic Control and pilots of approximately six planes during one incident and approximately four planes during a second incident were affected by the outages. In total, pilots could not hear instructions from Air Traffic Control for a total of two minutes, as a result of the outages caused by the defendant.
The defendant had previously pled guilty pursuant to a plea agreement. As part of her plea agreement, she resigned from the F.A.A. before sentencing. As a result, she lost her retirement benefits, which were estimated to have been worth in excess of $500,000.
One of the pilots of an aircraft affected by the outage spoke as a victim at the sentencing. He emphasized the danger to himself and the 40 passengers onboard his aircraft posed by the outage.
“The United States Attorney’s Office takes any threat to the safety of the air travelling public very seriously, and will vigorously enforce federal criminal laws against any federal employee who abuses their position and, in doing so, puts air travelers in harm’s way,” said U.S. Attorney Kenji M. Price.
“Employees of the Federal Aviation Administration (FAA) are entrusted with safely overseeing the busiest and most complex air transportation system in the world. Key to that trust is maintaining an uncompromising level of integrity in their work, which many FAA personnel do,” said Cissy Tubbs, Special Agent-in-Charge, Western Region, Department of Transportation, Office of Inspector General - Investigations. “Today’s sentencing demonstrates our commitment to working with our law enforcement partners and the U.S. Attorney’s Office to detect and prevent those willing to compromise the safety of the National Airspace System and the traveling public.”
The case was investigated by the Department of Transportation, Office of Inspector General, and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Marc A. Wallenstein.
Individual indicted for drug trafficking and firearms possessionRead the Press Release
Honolulu, Hawaii – Ping Hong Lee of Honolulu, Hawaii, was arraigned today before Magistrate Judge Wes R. Porter on an indictment charging conspiracy to distribute and possess with the intent to distribute cocaine, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm and ammunition. He pleaded not guilty to the offenses. Trial is scheduled for March 30, 2021 before Senior District Court Judge Helen Gilmore
US Attorney for the District of Hawaii Kenji M. Price announced the charges.
As set forth in court filings, on January 13, 2021, law enforcement officers observed Lee, the lone occupant of a 2018 Porsche Macan GTS, pull into the pick-up area of a Waikiki Hotel. While there, a male entered the backseat of the Porsche with a dark blue duffle bag and then exited without the dark blue duffle bag. After Lee drove away, law enforcement officers tried to conduct a stop of the Porsche but were unsuccessful. The Porsche and Lee were found minutes later. Within the Porsche, law enforcement officers recovered approximately 11 kilograms (approximately 24 pounds) of cocaine from within the dark blue duffle bag, a loaded Charter Arms .38 caliber pistol, and US currency.
As charged in the indictment, Lee has a prior 2012 federal drug distribution felony conviction.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Lee faces a mandatory minimum sentence of 20 years of incarceration and up to life.
The case was investigated by the DEA. The case is being prosecuted by Assistant U.S. Attorney Darren W.K. Ching.
Two Maui Men Charged with Hate Crimes for Racially Motivated AttackRead the Press Release
A federal grand jury in Honolulu, Hawaii, returned an indictment charging Kaulana Alo Kaonohi and Levi Aki, Jr. with a hate crime for their racially motivated attack on a Caucasian man who was attempting to move into the defendants’ Native Hawaiian neighborhood of Kahakuloa on Maui.
The indictment was announced today by Acting Assistant Attorney General John B. Daukas for the Department of Justice’s Civil Rights Division, U.S. Attorney Kenji M. Price for the District of Hawaii, and FBI Honolulu Special Agent in Charge Eli S. Miranda.
The indictment alleges that, on Feb. 13, 2014, Kaonohi and Aki willfully caused bodily injury to C.K., and attempted to cause bodily injury to C.K. through the use of a dangerous weapon (a shovel), because of C.K.’s actual and perceived race and color.
The maximum penalty for the charged crime is 10 years of imprisonment. An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant U.S. Attorney Chris Thomas of the District of Hawaii is prosecuting the case in partnership with Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division.
Former government contractor sentenced for role in bribery and kickback schemeRead the Press Release
WASHINGTON – A former government contractor was sentenced today for his role in a bribery and kickback scheme where he paid bribes to secure U.S. Army contracts.
David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Kenji M. Price, U.S. Attorney of the District of Hawaii; Ray Park, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s (Army-CID) Pacific Fraud Field Office; Bryan Denny, Special Agent in Charge of the U.S. Defense Criminal Investigative Service (DCIS); and Eli “Sam” Miranda, Special Agent in Charge of the FBI’s Honolulu Field Office made the announcement.
John Winslett, 66, of Bristol, Rhode Island, was sentenced to 70 months in prison followed by three years of supervised release before Chief Judge J. Michael Seabright in the District of Hawaii.
According to court documents and information presented in court, Winslett admitted that from 2011 to 2018, Winslett paid over $100,000 worth of bribes to two U.S. Army contracting officials who worked at the Range at Schofield Barracks, in order to steer federal contracts worth at least $19 million to his employer, a government contractor. The bribes included cash, automobiles, and firearms. In return, the contracting officials used their positions to benefit Winslett’s employer in securing U.S. Army contracts.
Winslett further admitted that he accepted $723,333.33 in kickbacks from a local subcontractor in exchange for Winslett assigning those contracts to that local subcontractor.
Army-CID, DCIS and the FBI investigated this case.
Trial Attorney Laura Connelly and Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein of the District of Hawaii are prosecuting the case.
Former Government Contractor Sentenced for Role in Bribery and Kickback SchemeRead the Press Release
A former government contractor was sentenced today for his role in a bribery and kickback scheme where he paid bribes to secure U.S. Army contracts.
David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Kenji M. Price, U.S. Attorney of the District of Hawaii; Ray Park, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s (Army-CID) Pacific Fraud Field Office; Bryan Denny, Special Agent in Charge of the U.S. Defense Criminal Investigative Service (DCIS); and Eli “Sam” Miranda, Special Agent in Charge of the FBI’s Honolulu Field Office made the announcement.
John Winslett, 66, of Bristol, Rhode Island, was sentenced to 70 months in prison followed by three years of supervised release before Chief Judge J. Michael Seabright in the District of Hawaii.
According to court documents and information presented in court, Winslett admitted that from 2011 to 2018, he paid over $100,000 worth of bribes to two U.S. Army contracting officials who worked at the Range at Schofield Barracks, in order to steer federal contracts worth at least $19 million to his employer, a government contractor. The bribes included cash, automobiles, and firearms. In return, the contracting officials used their positions to benefit Winslett’s employer in securing U.S. Army contracts.
Winslett further admitted that he accepted $723,333.33 in kickbacks from a local subcontractor in exchange for Winslett assigning those contracts to that local subcontractor.
Army-CID, DCIS and the FBI investigated this case.
Trial Attorney Laura Connelly and Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein of the District of Hawaii are prosecuting the case.
Dos hombres de Maui fueron sentenciados con crímenes de odio por ataque por motivos racistasRead the Press Release
Un gran jurado federal en Honolulu, Hawaii, regresó una acusación de cargos a Kaulana Alo Kaonohi y Levi Aki, Jr. con un crimen de odio por su ataque por motivos racistas a un hombre caucásico que intentaba mudarse al vecindario de los acusados nativos de Hawaii en Kahakuloa, Maui.
Hoy anunciaron la acusación el Fiscal General Interino, John B. Daukas, de la División de Derechos Civiles del Departamento de Justicia, el Fiscal de EE.UU., Kenji M. Price para el Distrito de Hawaii y el Agente Especial a Cargo del FBI de Honolulu, Eli S. Miranda.
La acusación alega que el 13 de febrero 2014, Kaonohi y Aki willfully le provocaron lesiones corporales a C.K por medio del uso de un arma peligrosa (una pala), por la raza y color verdaderos y percibidos de C.K.
La penalidad máxima por el delito imputado es de 10 años de cárcel. Una dictamen acusatorio es meramente una acusación y los demandados se presumen inocentes hasta que se prueben culpables.
El FBI llevó a cabo la investigación. El Fiscal Asistente de EE.UU., Chris Thomas, del Distrito de Hawaii está procesando el caso en asociación con el Abogado de Litigio Especial, Christopher J. Perras y Abogado Ligitante, Tara Allison de la División de Derechos Civiles del Departamento de Justicia.
Statement of United States Attorney Kenji M. PriceRead the Press Release
HONOLULU, Hawaii – As authorities address questions about the assault on democracy that occurred last week and hold certain individuals accountable for their egregious behavior, we must also do the preparations necessary to ensure the safety of our communities during the presidential inauguration.
The people of Hawaii should rest assured that the federal law enforcement community will use its resources to prevent harm to our government infrastructure, elected officials, and, most importantly, the people in our communities. Notably, the FBI has established response protocols to address any threats to the safety and security of our communities in connection with the transition of leadership in our country. My office will work hand in glove with the FBI, and any other appropriate law enforcement entity, to ensure that we investigate and bring appropriate charges against anyone who violates federal law in connection with the presidential inauguration. Those who choose to jeopardize the peaceful transition of power, or otherwise unlawfully wreak havoc in our communities, should know that my office will do our part to ensure that they are unsuccessful and that we create a path for them to spend time in federal prison.
Only as a community can we successfully prevent senseless attacks on our democracy. If you have information about any individual or individuals who you believe plan to violate the law, please call 911 or contact FBI Honolulu at (808) 566-4300 or https://tips.fbi.gov.
Nicholas R. Ochs Arrested for Unlawful Entry into the United States Capitol BuildingRead the Press Release
HONOLULU, Hawaii – A criminal complaint was unsealed today in federal court in the District of Columbia charging Nicholas R. Ochs with Unlawful Entry into Restricted Buildings or Grounds, in violation of Title 18, United States Code, Section 1752(a). The defendant was arrested last evening in Honolulu, Hawaii, at the Daniel K. Inouye International Airport. His initial appearance will be in federal court in Honolulu.
According to court filings, the charge stems from Ochs’s unlawful entry into the United States Capitol building on January 6, 2021. The government will seek his removal to the District of Columbia to face this charge.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
Please direct all press inquiries to Shelia Miller at the U.S. Attorney’s Office for the District of Columbia at (202) 252-6933, [email protected].
Statement of United States Attorney Kenji M. PriceRead the Press Release
HONOLULU, Hawaii – "I strongly condemn the assault on democracy that unfolded before our eyes yesterday at the very heart of the Nation’s capital. I’ve devoted much of my professional life—both as a uniformed servicemember and prosecutor—to protecting and defending the rule of law, our institutions, and, most importantly, the safety and security of those who reside in this great country. The acts of those who attacked the Capitol—and more importantly, attempted to stop the process by which free people determine who will lead this Nation during the years that lie ahead—contravene the very principles that scores of public servants like me stand for and have, at times, risked life and limb to defend.
As Acting Attorney General Jeffrey A. Rosen said earlier today, ‘The Department of Justice is committed to ensuring that those responsible for this attack on our Government and the rule of law face the full consequences of their actions under the law.’ My office condemns this unlawful behavior and will conduct or assist in conducting any investigation or prosecution with an appropriate nexus to our jurisdiction."
Oahu man sentenced to 71 months in prison for firearm, drug and theft offensesRead the Press Release
HONOLULU, Hawaii – Glenn Robert Alika Muth, 28, of Honolulu, was sentenced yesterday in federal court by United States District Judge Derrick K. Watson to 71 months of imprisonment and three years of supervised release for possession of a stolen firearm, possession of methamphetamine with intent to distribute, and theft of government property. Judge Watson ordered the sentence to run consecutively with any sentence imposed in Muth’s pending state theft cases. Additionally, Judge Watson ordered Muth to pay a total of $126,813.87 in restitution to the victims of his offenses.
U.S. Attorney for the District of Hawaii Kenji M. Price said that, according to court documents and information presented in court, on November 10, 2019, Muth—while on state probation—burglarized a residence in Waialua, Hawaii, stealing a gun safe containing 28 firearms and other items. The residence had a surveillance system that captured the burglary. Upon review, the owner identified the masked male in the surveillance footage as Muth and provided it to the Honolulu Police Department (HPD). The following day, HPD arrested Muth outside of an illegal game room for two outstanding probation revocation bench warrants. A federal search warrant executed on Muth’s backpack revealed two firearms and ammunition—one stolen from the burglary—and methamphetamine that Muth intended to use and distribute to others. Additionally, the Federal Bureau of Investigation (FBI) and the Army Criminal Investigation Command identified Muth as responsible for stealing a number of utility vehicles, equipment, and tools from the Logistical Readiness Center near Schofield Barracks in Hawaii.
At sentencing, Judge Watson stated that the “significant danger to the community” from the burglary is “the most troubling part of this case.” The extent of the harm is one that “we cannot calculate” today, Judge Watson remarked, because it is unknown where these firearms—capable of wreaking “havoc and mayhem”—will appear down the road. Judge Watson gave a sentence at the high-end of the guidelines - nearly six years - to run consecutively with any sentence imposed by the state because of Muth’s responsibility for “the significant number of weapons in our streets.”
The case was investigated by the FBI, the HPD, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Army Criminal Investigation Command. It was prosecuted by Assistant U.S. Attorneys Sara D. Ayabe, Michael Nammar, and Micah W.J. Smith.
This prosecution is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Former Hilo Correctional Officer Pleads Guilty for Assaulting an Inmate and Conspiring with Other Officers to Cover it UpRead the Press Release
A former correctional officer at the Hawaii Community Correctional Center pleaded guilty to three felony offenses yesterday for assaulting an inmate; for failing to protect the inmate from being assaulted by three other correctional officers; and for conspiring with those officers to cover it up.
Jordan DeMattos, 29, admitted during his plea hearing that he and fellow correctional officers pinned an inmate face-down on the ground, and then punched, kneed, and kicked the inmate in the face, head, and body dozens of times. DeMattos acknowledged that during much of the assault, the inmate was not resisting and the officers had no legitimate reason to use force against him. As a direct result of the assault, the inmate suffered a broken jaw, nose, and eye socket. DeMattos explained that he and the other officers conspired afterward to cover up the assault by engaging in a variety of obstructive acts, including devising a false cover story to explain and justify their use of excessive force, documenting that false cover story in official reports, and repeating that false cover story during the ensuing investigation and disciplinary proceedings arising out of the incident.
“This correctional officer’s actions go against every duty he swore to carry out when he took his badge,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Civil rights violations are particularly egregious when they are carried out by someone whose duty is to protect. The Justice Department works hard to ensure that these perpetrators see justice for their crimes.”
“Together, a uniform, title, and authority to secure a state facility are not a license to victimize,” said U.S. Attorney Kenji Price for the District of Hawaii. “My office is committed to vindicating the rights of all citizens by enforcing the law — which includes holding those charged with safeguarding correctional facilities accountable for assaulting the inmates housed within them.”
“Correctional officers are given great power to enforce rules, keep order, and protect the inmates within their facilities. When Jordan DeMattos exploited these powers and violated the civil rights of an inmate he was charged to protect, he undermined the respect and reputation of all the officers who perform their duties lawfully and with dignity,” said Special Agent in Charge Eli S. Miranda. “The FBI takes allegation of civil rights violations seriously and will always bring to justice those who abuse their power and violate the constitution.”
DeMattos faces a maximum statutory penalty of up to 10 years of imprisonment for the assault offense, 20 years of imprisonment for the false report offense, and five years of imprisonment for the conspiracy offense.
The other three officers allegedly involved — Jason Tagaloa, Jonathan Taum, and Craig Pinkney — have pleaded not guilty and are scheduled to begin trial on March 15, 2021.
The FBI conducted the investigation. Assistant U.S. Attorney Craig Nolan of the District of Hawaii is prosecuting the case in partnership with Special Litigation Counsel Christopher J. Perras and Trial Attorney Thomas Johnson of the Civil Rights Division.
Justice Department Settles Lawsuit Against Owners and Mangers of Housing Properties in Honolulu, Hawaii for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department announced today that it has reached a settlement with the owners and managers of housing in Honolulu, Hawaii, to resolve a lawsuit filed last year alleging that the defendants refused to rent to families with children at properties they owned and managed, in violation of the Fair Housing Act.
Today’s agreement, which is in the form a consent decree and still must be approved by the court, resolves a lawsuit alleging that Hawaii Student Suites Inc., Hawaii Student Residences LLC d/b/a Hawaii Student Suites, Savio Hauoli Street LLC, and 258-60 Beach Walk LLC engaged in unlawful familial status discrimination in connection with three properties in Honolulu: Beachwalk, Kalo Terrace, and Pacific Villa. Specifically, the complaint alleged that the defendants discriminated against families with children by: (1) refusing to rent to or negotiate for the rental of the three properties on the basis of familial status; (2) steering prospective renters with children who inquired about housing away from these properties to a separate property management company; and (3) making discouraging and other discriminatory statements to potential renters with children who inquired about housing, including that the housing was not “suitable” or the right “fit” for families with children.
“Many families across the country are struggling right now to find housing, and they should not also have to endure discrimination that makes finding a place to live even more difficult,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “It is illegal to refuse to rent to families with children, and the Justice Department is committed to vigorously enforcing the Fair Housing Act and seeking relief for families harmed by unlawful discrimination.”
“The Fair Housing Act promotes the public interest in prohibiting discrimination on the basis of familial status,” said U.S. Attorney Kenji Price for the District of Hawaii. “This settlement advances society’s strong interest in ensuring equal access to private student housing in Hawaii by those who chose to enjoy the beauty of family life. My office is committed to protecting these families by enforcing the law.”
Under the consent decree, the defendants must:
- Pay a total monetary settlement of $80,000, consisting of a $70,000 settlement fund that will be used to compensate families that were harmed by defendants’ practices, as well as $10,000 to the United States as a civil penalty;
- Adopt non-discriminatory policies and practices that ensure compliance with the Fair Housing Act;
- Conduct employee training to ensure compliance with the Fair Housing Act; and
- Submit to record keeping and monitoring requirements for the three-year period of the consent decree.
The Legal Aid Society of Hawaii brought this matter to the department’s attention after conducting testing which, as the complaint alleges, showed discrimination against families with children in connection with the defendants’ properties. Today’s settlement also resolves claims brought in a separate complaint by one of Legal Aid Society’s testers.
Individuals who believe that they may have been victims of familial status discrimination or other types of housing discrimination at rental dwellings owned or managed by the defendants, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 998 to leave a message.
Individuals can also report housing discrimination by submitting a report online at www.civilrights.justice.gov.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Jury finds man guilty of attempted enticement of a minorRead the Press Release
HONOLULU, Hawaii – A federal jury today found Noel Macapagal, 47, of Kaneohe, Hawaii, guilty of attempted enticement of a minor in violation of 18 U.S.C. § 2422(b). The verdict followed a four-day jury trial before United States District Judge Leslie E. Kobayashi. Sentencing is scheduled for March 11, 2021.
According to the evidence presented during trial, in March 2019, an undercover law enforcement officer posing as the mother of three young girls, aged 6, 9, and 11, exchanged messages on-line with the defendant in connection with making her daughters available for sexual activities. The defendant was later arrested when he drove to meet them in person.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Marc A. Wallenstein and Morgan Early.
Domestic violence offender sentenced to four years in prisonRead the Press Release
HONOLULU, Hawaii – District Judge Leslie E. Kobayashi sentenced David Benjamin Cordeiro, 38, of Mountain View, Hawaii, today for one count of possession of ammunition after having been previously convicted of misdemeanor domestic violence, in violation of 18 U.S.C. § 922(g)(9). Cordeiro will serve four years imprisonment, with three years of supervised release to follow.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on September 1, 2018, Cordeiro fired approximately nine bullets into a stopped car, in which two females, including his girlfriend, were seated. One bullet pierced the windshield of the car, causing his girlfriend to believe she had been struck by a bullet. Cordeiro had multiple prior convictions for domestic violence and abuse of family members under Hawaii law. Accordingly, federal law prohibited Cordeiro from possessing firearms or ammunition.
As presented in court, Cordeiro’s prior convictions under state law included an incident wherein he physically assaulted and threw gasoline on a prior intimate partner; an incident in which he burned a female victim with the hot metal tip of a butane torch; and two separate incidents wherein he violently struck women while they held his infant child. All of these incidents involved different female victims.
In light of his criminal history and characteristics, Judge Kobayashi imposed an upward variance at sentencing, meaning a sentence higher than Cordeiro’s calculated guidelines range under the United States Sentencing Guidelines. “In cases like this one, a firearm or ammunition in the hands of someone convicted of misdemeanor domestic violence is a federal crime and recipe for disaster. We will vigorously investigate and prosecute those who choose to endanger our communities by unlawfully possessing guns or ammunition,” stated U.S. Attorney Price.
The case was investigated by the Hawaii County Police Department and the Federal Bureau of Alcohol, Tobacco, and Firearms. It was prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Neighborhood, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Man sentenced to ten years in prison for attempted sexual enticement of a 13-year-old girlRead the Press Release
HONOLULU, Hawaii – the Honorable District Judge Helen Gillmor sentenced Zachariah Fredrickson, 32, of Kapolei, Hawaii, to ten years in prison, to be followed by ten years of supervised release, for attempting to entice a 13 year-old minor to engage in unlawful sexual activity. He will also pay a $5000 special assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on March 25, 2019, Fredrickson engaged in a series of online chats with an undercover agent posing as a 13-year-old girl. During their conversations, Fredrickson arranged to meet the girl in person with the intent to engage in sexual activity, and agreed to pay $100 per hour for sex with the girl. Fredrickson then traveled to an agreed-upon location, and was later arrested.
“My office will continue to protect children in our communities from those who lurk in the corners of cyberspace seeking opportunities to exploit them. These kinds of prosecutions put child sex predators on notice that the Department of Justice will not sit by idly by while they try to take advantage of children. The federal law enforcement community and its partners will proactively bring these perpetrators to justice,” stated U.S. Attorney Price.
“In today's world the internet allows our children to connect globally. Unfortunately many parents, do not know who their children are connecting with online” stated Special Agent in Charge Eli S. Miranda. “Predators like Fredrickson use technology to sexually exploit our children. But the FBI remains vigilant and committed to catching these criminals and ensuring that justice is served.”
The case was investigated by the FBI and the Hawaii Internet Crimes Against Children Task Force (ICAC), and it was prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fraudster Sentenced to 20 Years’ Imprisonment in Connection with Fraudulent Mortgage Debt Reduction SchemeRead the Press Release
HONOLULU, Hawaii –Anthony T. Williams, 49, of Pineville, Louisiana was sentenced today in federal court by U.S. District Judge Leslie E. Kobayashi to 240 months’ imprisonment for wire fraud and mail fraud in connection with a fraudulent mortgage relief scheme. A federal jury convicted Williams on March 3, 2020 of 32 counts of wire fraud and mail fraud after a four week trial.
Williams marketed a fraudulent mortgage debt reduction scheme to distressed homeowners, who were mostly non-native English speakers in the Filipino immigrant community in Hawaii. Williams created two companies, Mortgage Enterprise Investments (MEI) and Common Law Office of America (CLOA), neither of which was licensed to service or modify mortgages. Through MEI, Williams made conflicting promises to clients that he could eliminate their existing mortgage obligations to their lenders, or reduce their mortgage obligations by half. Through CLOA, Williams promised legal representation in mortgage-related litigation and foreclosure proceedings. To give himself the appearance of credibility, Williams told prospective clients he was a “private attorney general” and brandished an official-looking law enforcement badge and credentials, despite not having a law license or any affiliation with law enforcement.
Williams falsely promised victims that he could eliminate their existing home mortgage obligations by filing bogus documents with the Hawaii Bureau of Conveyances. These documents included new MEI mortgages and notes obligating homeowners to make monthly payments to MEI. Williams then advised homeowners to stop making their mortgage payments to their lenders and to pay him instead.
Between 2012 and 2015, Williams enlisted 112 victims in Hawaii into his MEI program and fraudulently obtained over $230,000 from his victims, without providing any legitimate services. Several victims testified at trial that they had relied upon Williams’s representations and went into foreclosure or bankruptcy. Two victims testified that they lost their homes as a result of Williams’s scheme.
“For several years, Anthony Williams actively preyed upon distressed homeowners within the Filipino community here in the State of Hawaii. His scheme financially devastated his victims, forcing some into bankruptcy and homelessness. As a result of this prosecution, Williams’s scheme has come to an end and Williams will be incarcerated for 20 years. My office will continue to protect the most vulnerable members of our community,” said U.S. Attorney Price.
“Williams knowingly targeted and preyed upon citizens of our Filipino community” said Eli Miranda, Special Agent in Charge of the FBI's Honolulu Division. “He took advantage of this vulnerable and in need population, delivering empty promises. He drained their finances leaving many penniless. The FBI cannot, and will not stand by. We will continue to maximize our efforts with partner agencies to bring these perpetrators to justice and hold them accountable for their crimes.”
In addition to a term of imprisonment, the Court also imposed three years of supervised release, and restitution. The Court’s sentence of imprisonment is to run consecutively to a fifteen-year sentence of imprisonment that another court had handed down earlier to Williams for similar fraudulent conduct in the State of Florida.
The investigation was led by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kenneth M. Sorenson and Gregg Paris Yates handled the prosecution.
Owner of Japanese Fishing Vessel Pleads Guilty to Unlawful Trafficking of Shark FinsRead the Press Release
Hamada Suisan Co. Ltd., the owner of the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20, pleaded guilty, pursuant to a plea agreement, to aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act, the Department of Justice announced.
The company was sentenced to pay a fine of $126,000, forfeiture of $119,000 (representing the value of the vessel), and a period of probation of three years. This sentence represents the largest monetary penalty ever imposed for a federal shark finning case. During the three-year probation period, the company must comply with a robust compliance plan developed in coordination with the Department of Justice and supervised by the probation officer. The company must also retire and relinquish the fishing license in Japan previously associated with the Kyoshin Maru.
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill for the Justice Department’s Environment and Natural Resources Division. “The sentence imposed today, and Japan’s related actions holding this Japanese company to account, reflects the seriousness of these offenses and the United States’ and international commitment to ending this practice.”
“Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem,” said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
According to court documents, the case arose from the November 2018 discovery of approximately 962 shark fins, weighing approximately 190 pounds, from the checked luggage of fisherman working aboard the Kyoshin Maru. The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. When sharks were caught as bycatch by the Kyoshin Maru, the fishing master of the vessel directed the crew members to haul the shark into the vessel and kill the shark, instead of cutting the line and letting the shark swim free, in order to save the hook. The crew members followed this instruction, though at times they cut the line when the fishing master was not looking, in order to avoid the danger of handling a live shark. The fishermen dried the shark fins without the corresponding shark carcasses, in plain view of the captain and crew. The captain and the fishing master personally observed the shark finning that took place on the vessel, and did nothing to stop it. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about Nov. 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service (FWS) seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan, and Indonesia. According to the National Oceanic and Atmospheric Administration (NOAA), the oceanic whitetip shark has declined by approximately 80-95 percent across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES.
The 10 Indonesian nationals with shark fins in their luggage were arrested and eventually pled guilty to a violation of the Lacey Act in United States v. Abdurahman et al., Cr. No. 18-00192 KJM.
The Japan Fisheries Agency, which is the government agency in Japan responsible for enforcement of Japan's shark finning laws, conducted a parallel investigation. On March 27, 2019, Japan found a violation of Japan's shark finning ordinances, and imposed an administrative penalty upon the Kyoshin Maru, specifically a “stoppage” that prohibited the vessel from operating for a period of 67 days, and also prohibited maintenance or repairs during the stoppage period. The Kyoshin Maru did not operate and remained at port from the time it arrived in Japan after dropping off the fishermen in Honolulu, until the time it was eventually sold – a period of approximately eight months, during which the vessel deteriorated. The parties stipulated that $119,000 in substitute assets is appropriate in lieu of forfeiture of the Kyoshin Maru, which is now beyond the control of the defendants.
The possession and sale of shark fins are regulated by several international treaties, to which both Japan and the United States are parties. These treaties obligate member nations to pass domestic laws prohibiting the retention onboard of any part of certain protected shark species, including oceanic whitetip sharks and silky sharks; and to require shark fins to comprise no more than 5 percent of the weight of sharks on board, among other requirements. Japan and the United States have passed domestic laws that implement these treaty obligations by restricting the shark fin trade. The State of Hawaii goes beyond these treaty obligations and completely bans the shark fin trade. It is unlawful to possess, sell, offer for sale, trade, or distribute shark fins in Hawaii, and Hawaii was the first state to impose an outright ban on the shark fin trade.
This case was investigated by the FWS, Office of Law Enforcement, with assistance from NOAA, Office of Law Enforcement; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service, and the U.S. Coast Guard. It was prosecuted by Senior Counsel for Wildlife Programs Elinor Colbourn of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Marc A. Wallenstein for the District of Hawaii. The prosecution team coordinated with the U.S. Department of State on this matter.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner of Japanese fishing vessel pleads guilty to unlawful trafficking of shark fins and is sentenced to largest criminal monetary penalty ever imposed in shark finning case in the United StatesRead the Press Release
HONOLULU—Hamada Suisan Co. Ltd., the owner of the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20, plead guilty, pursuant to a plea agreement, to aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act, the Department of Justice announced today. The company’s attorney entered the guilty plea in person in Honolulu on behalf of the company, and company representatives appeared by video from Japan.
The company was sentenced to pay a fine of $126,000, forfeiture of $119,000 (representing the value of the vessel), and a period of probation of three years. This sentence represents the largest monetary penalty ever imposed for a federal shark finning case. During the three-year probation period, the company must comply with a robust compliance plan developed in coordination with the Department of Justice and supervised by the Probation Officer. The company must also retire and relinquish the fishing license in Japan previously associated with the Kyoshin Maru.
According to court documents, the case arose from the November 2018 discovery of approximately 962 shark fins, weighing approximately 190 pounds, from the checked luggage of fisherman working aboard the Kyoshin Maru. The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. When sharks were caught as bycatch by the Kyoshin Maru, the fishing master of the vessel directed the crew members to haul the shark into the vessel and kill the shark, instead of cutting the line and letting the shark swim free, in order to save the hook. The crew members followed this instruction, though at times they cut the line when the fishing master was not looking, in order to avoid the danger of handling a live shark. The fishermen dried the shark fins without the corresponding shark carcasses, in plain view of the captain and crew. The Captain and the Fishing Master personally observed the shark finning that took place on the vessel, and did nothing to stop it. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about Nov. 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan, and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic whitetip shark has declined by approximately 80-95 percent across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The ten Indonesian nationals with shark fins in their luggage were arrested and eventually pled guilty to a violation of the Lacey Act in United States v. Abdurahman et al., Cr. No. 18-00192 KJM. The Captain of the vessel, the fishing master, and the other Japanese officers have been terminated from their employment with Hamada Suisan.
The Japan Fisheries Agency, which is the government agency in Japan responsible for enforcement of Japan's shark finning laws, conducted a parallel investigation. On March 27, 2019, Japan found a violation of Japan's shark finning ordinances, and imposed an administrative penalty upon the Kyoshin Maru, specifically a “stoppage” that prohibited the vessel from operating for a period of 67 days, and also prohibited maintenance or repairs during the stoppage period. The Kyoshin Maru did not operate and remained at port from the time it arrived in Japan after dropping off the fishermen in Honolulu, until the time it was eventually sold—a period of approximately 8 months, during which the vessel deteriorated. The parties stipulated that $119,000 in substitute assets is appropriate in lieu of forfeiture of the Kyoshin Maru, which is now beyond the control of the defendants.
At sentencing, the judge, Hon. J. Michael Seabright, described the defendant’s conduct as “callous, cruel, and unnecessary.” Judge Seabright noted that the contract used by the defendant’s manning agent in Indonesia to hire the Indonesian crew members specifically contemplated that shark finning would take place and described how to divide the proceeds. Judge Seabright noted, however, that the company had engaged in prompt cooperation with government. Judge Seabright said, “I hope this sentence deters long-line tuna fishermen from engaging in shark finning and causes them to comply with international norms and the rule of law. Hopefully ship owners get word of this.”
Mr. Shinichi Hamada, Managing Director of Hamada Suisan Co. Ltd., participated in the proceedings by video from Japan, with the assistance of a Japanese translator. He apologized for the offense, accepted responsibility, and committed to changing Hamada Suisan’s corporate culture through the compliance plan.
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill for the Environment and Natural Resources Division. “The sentence imposed today, and Japan’s related actions holding this Japanese company to account, reflects the seriousness of these offenses and the United States’ and international commitment to ending this practice.”
“Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem," said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
The possession and sale of shark fins are regulated by several international treaties, to which both Japan and the United States are parties. These treaties obligate member nations to pass domestic laws prohibiting the retention onboard of any part of certain protected shark species, including oceanic whitetip sharks and silky sharks; and to require shark fins to comprise no more than 5% of the weight of sharks on board, among other requirements. Japan and the United States have passed domestic laws that implement these treaty obligations by restricting the shark fin trade. The State of Hawaii goes beyond these treaty obligations and completely bans the shark fin trade. It is unlawful to possess, sell, offer for sale, trade, or distribute shark fins in Hawaii, and Hawaii was the first state to impose an outright ban on the shark fin trade.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service, and; the U.S. Coast Guard. It was prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, U.S. Department of Justice. The prosecution team coordinated with the U.S. Department of State on this matter.
Hawaii physician charged with unlawful distribution of hydrocodoneRead the Press Release
HONOLULU – Paul A. Kaiwi, Jr., 51, a medical doctor and resident of Wailuku, Hawaii, was charged by a criminal complaint unsealed today with six counts of unlawful distribution of the controlled substance hydrocodone.
As described in the affidavit in support of the criminal complaint, in December 2018, an undercover agent of the Drug Enforcement Administration (“DEA”) sought an appointment with Kaiwi by posing as a new patient seeking prescriptions for opioid medications. Between December 2018 and May 2019, the undercover agent saw Kaiwi over the course of six patient visits at Kaiwi’s medical practice, Progressive Medical, located in Kahului, Hawaii on Maui. Kaiwi also operates a Progressive Medical office in Hilo, Hawaii.
During the patient visits with the undercover agent, Kaiwi conducted little or no medical history or physical examination, and often provided a prescription within minutes of entering the examination room. In each of the six visits, Kaiwi provided the undercover agent a prescription for between 84 and 90 pills of hydrocodone. Hydrocodone is a moderately potent, orally available opioid that, in combination with acetaminophen, is widely used for treatment of acute or chronic pain
Medical experts conducted a review of the undercover agent’s patient medical records created by Kaiwi and maintained by Progressive Medical. That review showed not only that the information in the medical records was inadequate to justify the hydrocodone prescriptions, but also that the medical records contained false and fabricated information regarding the patient visits. For example, while medical records indicate that Kaiwi performed a musculoskeletal examination during six of the undercover agent’s patient visits, video footage reveals no examination at all during four of the visits and only a partial examination during two visits.
Law enforcement analysis of Kaiwi’s prescription data from approximately 2015 through 2020 revealed that 88% of his patients who received prescriptions for controlled substances obtained an opioid prescription, and that Kaiwi frequently prescribed opioids in conjunction with other medications, such as benzodiazepines and muscle relaxers, all of which are controlled substances often sought by illicit drug users and such combinations increase a patient’s risk of overdose. DEA analysis of State of Hawaii prescription data for prescriptions written by Kaiwi reveal that 277 of his patients received prescriptions with an aggregate MME (morphine milligram equivalents) of twice the upper limit recommended by the Centers for Disease Control (CDC). DEA analysis also revealed that 66 of those patients received prescriptions with aggregate MME per day of five times the upper limit recommended by the CDC.
“Today’s charges reflect our ongoing commitment to hold doctors who unlawfully prescribe controlled substances accountable for their misconduct,” said U.S. Attorney Kenji M. Price. “As many Americans struggle to free themselves from the bondage of opioid addiction, the federal law enforcement community will do its part to hold those who unlawfully feed the addiction accountable for their criminal conduct.”
The charges include six counts of unlawful distribution of a schedule II controlled substance, for which each count carries a maximum statutory penalty of 20 years and a fine of not more than $1,000,000.
A criminal complaint is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Drug Enforcement Administration and the Department of Health and Human Services – Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Michael F. Albanese and Mohammad Khatib.
Honolulu man charged with possession of chemical weapon and unregistered destructive deviceRead the Press Release
HONOLULU – Ethan Sandomire, 20, a resident of Honolulu, Hawaii, was indicted by a federal grand jury today with possessing and attempting to possess a chemical weapon, and possessing an unregistered destructive device.
According to the indictment and other court documents, between approximately December 2019 and March 2020, Sandomire conducted extensive research into explosives, explosive devices, chemical and biological weapons, and related topics, and wrote privately about his plans for explosive and chemical attacks in and around Honolulu, Hawaii.
In early 2020, Sandomire ordered the materials to make a destructive device from multiple online vendors, which were then delivered to his residence. At or around the time of Sandomire’s arrest on March 29, 2020, the FBI seized the items that Sandomire had ordered online from a separate location, including, among other things: approximately 30 pounds of aluminum powder, approximately 30 pounds of ultra-pure potassium perchlorate, approximately 45 pounds of potassium perchlorate, and multiple ignition systems, wireless firing systems, and victim-initiated tripwire systems.
On February 24, 2020, Sandomire went to a hardware store in Honolulu and purchased items that, when combined, create chlorine gas, a toxic chemical. That same day, Sandomire searched the internet multiple times for the blueprints and floor plans of a large residential apartment building centrally located in Honolulu, Hawaii (“Building A”). Building A has approximately 450 residential apartment units, several commercial units, and a multi-level grocery store.
Two days later, on February 26, 2020, Sandomire visited Building A in person. Security camera footage showed Sandomire waiting outside the main lobby for someone to exit, then walking into the lobby before the doors closed, and taking the elevator to the sixth-floor parking area. He took pictures on his cellphone of structural support columns inside the parking garage that is located below Building A’s outdoor recreational area and lap pool. He also took pictures of a storage area and large air vents coming out of an air handler that serves a 16,000 square-foot space elsewhere in Building A.
Sandomire returned to Building A’s main lobby and asked for copies of the building’s floor plans from the front desk staff, which the staff member did not provide. He also visited the building developer’s office and took photographs of a physical model of Building A.
Sandomire’s personal computer contained a desktop note entitled “destroy [Building A]” by using chemicals and explosives, among other thing, and numerous folders with extensive research into explosives, chemical weapons, biological weapons, improvised munitions, and similar topics. Some of the folders were entitled “building demolition,” “my attack plan,” “explosives,” and “bio warfare.” The folders contained digital versions of approximately 54 books about explosives and related topics. Sandomire’s computer also contained an instructional document titled “Advanced Chemical Weapons Design and Manufacture,” with the subtitle “Chemicals that Kill in 30 Seconds or your Money Back.”
The charges filed today include one count of Possession of a chemical weapon, which carries a maximum statutory penalty of life imprisonment and a fine of not more than $250,000, and one count of Possession of an unregistered destructive device, which carries a maximum statutory penalty of 10 years’ imprisonment and a fine of not more than $10,000.
In announcing the charges, U.S. Attorney for the District of Hawaii, Kenji M. Price stated “My office will use the tools at its disposal to protect the community from those who possess destructive devices and chemical weapons. These kinds of cases underscore the importance of vigilant action by law enforcement to protect the public from the acquisition and use of materials that can cause devastating harm to our communities. This is the second case this year brought by my office that involves a violation of the federal chemical weapons statute, and we will continue to vigorously pursue, and bring to justice, those who endanger our communities by violating this law.”
“It is our priority at the FBI to keep the citizens of Hawaii and the United States safe and to ensure that individuals like Ethan Sandomire are stopped before they terrorize our communities. Even though Sandomire went to great lengths to obtain the knowledge and the materials to construct a chemical weapon and an explosive device, the men and women of the Honolulu FBI disrupted his evil intentions before he could cause harm. Today’s indictment is an example of the FBI's commitment of making Hawaii a safer place for all,” said Federal Bureau of Investigation Special Agent in Charge Eli S. Miranda.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein with the assistance of the Department of Justice’s National Security Division.
Hawaii CEO Charged with COVID-Relief FraudRead the Press Release
A Hawaii man has been taken into custody on allegations he fraudulently obtained more than $12.8 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Kenji M. Price of the District of Hawaii.
Martin Kao, 47, of Honolulu, Hawaii, was charged in a federal criminal complaint, unsealed today, filed in the District of Hawaii with two counts of bank fraud and five counts of money laundering. Kao will make his initial appearance Thursday at 9:30 HST before U.S. District Court Judge Kenneth J. Mansfield.
The complaint alleges that Kao, as Chief Executive Officer of Navatek LLC (now known as Martin Defense Group LLC), submitted at least two fraudulent PPP loan applications. In sum, Kao received approximately $12.8 million in PPP funds, over $2 million of which he transferred to his own personal accounts. According to the charges, Kao falsely inflated the number of employees on the loan application and falsely certified that the applicant and its affiliates would not receive, and had not received, another PPP loan.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by IRS-Criminal Investigation and the SBA’s Office of Inspector General. Trial Attorney Tom Tynan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Craig Nolan for the District of Hawaii are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner of Japanese fishing vessel charged with unlawful trafficking of shark finsRead the Press Release
HONOLULU – Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court today with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act.
The charge arose from the November 2018 discovery of approximately 962 shark fins weighing approximately 190 pounds from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (“Kyoshin Maru”). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about November 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic white tip shark has declined by approximately 80-95% across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In announcing the charge, U.S. Attorney for the District of Hawaii, Kenji M. Price stated: “Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem. My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
United States laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass; and the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark—including three species found among the fins at issue in this case—are protected under the CITES Convention.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service; and the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Owner of Japanese Fishing Vessel Charged with Unlawful Trafficking of Shark FinsRead the Press Release
Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act, the Department of Justice announced today.
The charge arose from the November 2018 discovery of approximately 962 shark fins, weighing approximately 190 pounds, from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (Kyoshin Maru). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about Nov. 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan, and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic whitetip shark has declined by approximately 80-95 percent across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
“Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem," said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. U.S. laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass, and; the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark — including three species found among the fins at issue in this case — are protected under the CITES Convention.
The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service, and; the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Owner of Japanese Fishing Vessel Charged with Unlawful Trafficking of Shark FinsRead the Press Release
HONOLULU – Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court today with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act.
The charge arose from the November 2018 discovery of approximately 962 shark fins weighing approximately 190 pounds from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (“Kyoshin Maru”). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about November 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic white tip shark has declined by approximately 80-95% across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In announcing the charge, U.S. Attorney for the District of Hawaii, Kenji M. Price stated: “Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem. My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
United States laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass; and the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark—including three species found among the fins at issue in this case—are protected under the CITES Convention.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service; and the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Hawaii Businesswoman Pleads Guilty to Facilitating Back-Channel Lobbying Campaign to Drop 1MDB Investigation and Remove a Foreign National to ChinaRead the Press Release
An American businesswoman with international ties pleaded guilty today for her role in facilitating an unregistered lobbying campaign of the Administration of the President of the United States and the U.S. Department of Justice on behalf of foreign principals in exchange for millions of dollars.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Assistant Attorney General John C. Demers of the Justice Department’s National Security Division, U.S. Attorney Kenji M. Price of the District of Hawaii, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, and Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General (OIG) made the announcement.
Nickie Mali Lum Davis, 45, of Honolulu, Hawaii, pleaded guilty before U.S. District Judge Leslie E. Kobayashi to one count of aiding and abetting violation of the Foreign Agents Registration Act.
“In exchange for millions of dollars, Nickie Davis and others covertly sought to do the bidding of a foreign government and a foreign principal by attempting to influence senior U.S. government officials regarding a pending Department of Justice investigation and the extradition of a foreign national,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Though Ms. Davis’s efforts were unsuccessful, this case demonstrates how foreign governments seek to advance their agendas in the United States by hiding behind politically influential proxies. Such conduct poses a serious threat to our national security and undermines the integrity of our democracy. The failure to disclose these relationships harms both the American people and government officials by preventing them from accounting for and evaluating the true source of and motivation for foreign lobbying efforts.”
“As this prosecution makes clear, those who line their pockets by facilitating a foreign national’s campaign to lobby our nation’s leaders will not hide under a cloak of anonymity,” said U.S. Attorney Kenji M. Price of the District of Hawaii. “Through our investigations and prosecutions, we will uncover your criminal conduct and hold you accountable.”
“Lum Davis, along with her coconspirators, attempted to influence the Department of Justice’s independence on behalf of a foreign country in exchange for millions of dollars. The OIG worked diligently with the FBI on this matter in order to protect the department’s integrity,“ Keith A. Bonanno, Special Agent in Charge of the DOJ OIG Cyber Investigations Office.
According to admissions made in connection with her plea, Lum Davis admitted that, between March 2017 and January 2018, she and others — including a prominent official of a national political party with ties to the administration — agreed to lobby the President of the United States, the Attorney General, and other high level officials in the administration and the Justice Department to drop civil forfeiture proceedings and a criminal investigation into the embezzlement of billions of dollars from 1Malaysia Development Berhad (1MDB), a strategic investment and development company wholly owned by the Government of Malaysia.
For their efforts, Lum Davis and others were paid millions of dollars by Foreign National A, an alleged architect of the 1MDB scheme. Lum Davis and others also agreed to lobby the Administration and Justice Department on behalf of Foreign National A and People’s Republic of China (PRC) Minister A, to arrange for the removal and return of PRC National A — a dissident of the PRC living in the United States. Lum Davis and others concealed from the officials whom they lobbied that they were working on behalf of Foreign National A and Foreign Minister A and were being paid millions of dollars by Foreign National A with the expectation of tens of millions more in success fees. The lobbying campaigns were ultimately unsuccessful.
Among other actions, Lum Davis and her confederates tried to arrange meetings for PRC Minister A with the Attorney General, the Secretary of Homeland Security, and other high-level officials during the PRC Minister’s visit to the United States in May 2017; provided talking points to the Secretary of State referencing the 1MDB investigation in advance of a meeting between the Secretary of State and the Malaysian Prime Minister in August 2017; and pushed the White House Chief of Staff for a meeting and golf game between the President and the Malaysian Prime Minister to allow the Malaysian Prime Minister to raise resolution of the 1MDB investigation. Lum Davis was paid at least $3 million for her role in the scheme, which she has agreed to forfeit as part of her plea agreement. The national political party official was paid at least $9 million.
George Higginbotham previously pleaded guilty for his role in the scheme on Nov. 30, 2018, in U.S. District Court for the District of Columbia.
Sentencing for Lum Davis will be set on a date to be determined.
The Honolulu and Los Angeles Field Divisions of the FBI and Justice Department-OIG investigated the case. Principal Deputy Chief John D. Keller, Deputy Director of Election Crimes Sean F. Mulryne, and Trial Attorneys Nicole R. Lockhart and James C. Mann of the Criminal Division’s Public Integrity Section (PIN), and Assistant U.S. Attorney Ken Sorenson of the District of Hawaii are prosecuting the case. Former PIN Trial Attorney Ryan Ellersick also provided significant assistance in the investigation.
Former CIA officer arrested and charged with espionageRead the Press Release
HONOLULU, Hawaii – Alexander Yuk Ching Ma, 67, a former Central Intelligence Agency (CIA) officer, was arrested on August 14, 2020 on a charge that he conspired with another former CIA officer to communicate classified information up to the Top Secret level to intelligence officials of the People’s Republic of China (PRC). The Criminal Complaint containing the charge was unsealed this morning.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Hawaii Kenji M. Price, Assistant Director of the FBI’s Counterintelligence Division Alan E. Kohler Jr., and Special Agent in Charge of the FBI’s Honolulu Field Office Eli S. Miranda made the announcement.
“The trail of Chinese espionage is long and, sadly, strewn with former American intelligence officers who betrayed their colleagues, their country and its liberal democratic values to support an authoritarian communist regime,” said Assistant Attorney General for National Security John C. Demers. “This betrayal is never worth it. Whether immediately, or many years after they thought they got away with it, we will find these traitors and we will bring them to justice. To the Chinese intelligence services, these individuals are expendable. To us, they are sad but urgent reminders of the need to stay vigilant.”
“The charges announced today are a sobering reminder to our communities in Hawaii of the constant threat posed by those who seek to jeopardize our nation’s security through acts of espionage,” said U.S. Attorney Price. “Of particular concern are the criminal acts of those who served in our nation’s intelligence community, but then choose to betray their former colleagues and the nation-at large by divulging classified national defense information to China. My office will continue to tenaciously pursue espionage cases.”
“This serious act of espionage is another example in a long string of illicit activities that the People’s Republic of China is conducting within and against the United States,” said Assistant Director Kohler. This case demonstrates that no matter the length or difficulty of the investigation, the men and women of the FBI will work tirelessly to protect our national security from the threat posed by Chinese intelligence services. Let it be known that anyone who violates a position of trust to betray the United States will face justice, no matter how many years it takes to bring their crimes to light.”
“These cases are very complicated and take years if not decades to bring to a conclusion,” said Special Agent in Charge Miranda. “I could not be more proud of the work done by the men and women of the FBI’s Honolulu Division in pursuing this case. Their dedication is a reminder that the FBI will never waiver when it comes to ensuring the safety and security of our nation.”
Ma is a naturalized U.S. citizen born in Shanghai, China. According to court documents, Ma began working for the CIA in 1982, maintained a Top Secret clearance, and signed numerous non-disclosure agreements in which he acknowledged his responsibility and ongoing duty to protect U.S. government secrets during his tenure at CIA. Ma left the CIA in 1989 and lived and worked in Shanghai, China before arriving in Hawaii in 2001.
According to court documents, Ma and the other former CIA officer (identified as co-conspirator #1) conspired with each other and multiple PRC intelligence officials to communicate classified national defense information over the course of a decade. The scheme began with three days of meetings in Hong Kong in March 2001 during which the two former CIA officers provided information to the foreign intelligence service about the CIA’s personnel, operations, and methods of concealing communications. Part of the meeting was captured on videotape, including a portion where Ma can be seen receiving and counting $50,000 in cash for the secrets they provided.
The court documents further allege that after Ma moved to Hawaii, he sought employment with the FBI in order to once again gain access to classified U.S. government information which he could in turn provide to his PRC handlers. In 2004, the FBI’s Honolulu Field Office hired Ma as a contract linguist tasked with reviewing and translating Chinese language documents. Over the following six years, Ma regularly copied, photographed and stole documents that displayed U.S. classification markings such as “SECRET.” Ma took some of the stolen documents and images with him on his frequent trips to China with the intent to provide them to his handlers. Ma often returned from China with thousands of dollars in cash and expensive gifts, such as a new set of golf clubs.
According to court documents, in Spring 2019, over the course of two in-person meetings, Ma confirmed his espionage activities to an FBI undercover employee Ma believed was a representative of the PRC intelligence service, and accepted $2,000 in cash from the FBI undercover as “small token” of appreciation for Ma’s assistance to China. Ma also offered to once again work for the PRC intelligence service. On August 12, 2020, during a meeting with an FBI undercover employee before arrest, Ma again accepted money for his past espionage activities, expressed his willingness to continue to help the Chinese government, and stated that he wanted “the motherland” to succeed.
Ma will make his initial appearance before a federal judge later today or tomorrow in the U.S. District Court for the District of Hawaii. He is charged with conspiracy to communicate national defense information to aid a foreign government and faces a maximum penalty of life imprisonment, or death, if convicted. The maximum sentence is prescribed by Congress and is provided here for informational purposes. In the event Ma is convicted, a federal district court judge will determine any sentence after taking into account the advisory Sentencing Guidelines and other statutory factors.
The investigation was conducted by the FBI’s Honolulu and Los Angeles Field Offices. Assistant U.S. Attorney Ken Sorenson and Trial Attorneys Scott Claffee and Steve Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Former CIA Officer Arrested and Charged with EspionageRead the Press Release
Alexander Yuk Ching Ma, 67, a former Central Intelligence Agency (CIA) officer, was arrested on Aug. 14, 2020, on a charge that he conspired with a relative of his who also was a former CIA officer to communicate classified information up to the Top Secret level to intelligence officials of the People’s Republic of China (PRC). The Criminal Complaint containing the charge was unsealed this morning.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Hawaii Kenji M. Price, Assistant Director of the FBI’s Counterintelligence Division Alan E. Kohler Jr., and Special Agent in Charge of the FBI’s Honolulu Field Office Eli S. Miranda made the announcement.
“The trail of Chinese espionage is long and, sadly, strewn with former American intelligence officers who betrayed their colleagues, their country and its liberal democratic values to support an authoritarian communist regime,” said Assistant Attorney General for National Security John C. Demers. “This betrayal is never worth it. Whether immediately, or many years after they thought they got away with it, we will find these traitors and we will bring them to justice. To the Chinese intelligence services, these individuals are expendable. To us, they are sad but urgent reminders of the need to stay vigilant.”
“The charges announced today are a sobering reminder to our communities in Hawaii of the constant threat posed by those who seek to jeopardize our nation’s security through acts of espionage,” said U.S. Attorney Price. “Of particular concern are the criminal acts of those who served in our nation’s intelligence community, but then choose to betray their former colleagues and the nation-at large by divulging classified national defense information to China. My office will continue to tenaciously pursue espionage cases.”
“This serious act of espionage is another example in a long string of illicit activities that the People's Republic of China is conducting within and against the United States,” said Alan E. Kohler Jr., Assistant Director of the FBI's Counterintelligence Division. “This case demonstrates that no matter the length or difficulty of the investigation, the men and women of the FBI will work tirelessly to protect our national security from the threat posed by Chinese intelligence services. Let it be known that anyone who violates a position of trust to betray the United States will face justice, no matter how many years it takes to bring their crimes to light.”
“These cases are very complicated and take years if not decades to bring to a conclusion,” said Eli Miranda, Special Agent in Charge of the FBI's Honolulu Division. “I could not be more proud of the work done by the men and women of the FBI's Honolulu Division in pursuing this case. Their dedication is a reminder that the FBI will never waiver when it comes to ensuring the safety and security of our nation.”
Ma is a naturalized U.S. citizen born in Hong Kong. According to court documents, Ma began working for the CIA in 1982, maintained a Top Secret clearance, and signed numerous non-disclosure agreements in which he acknowledged his responsibility and ongoing duty to protect U.S. government secrets during his tenure at CIA. Ma left the CIA in 1989 and lived and worked in Shanghai, China before arriving in Hawaii in 2001.
According to court documents, Ma and his relative (identified as co-conspirator #1) conspired with each other and multiple PRC intelligence officials to communicate classified national defense information over the course of a decade. The scheme began with three days of meetings in Hong Kong in March 2001 during which the two former CIA officers provided information to the foreign intelligence service about the CIA’s personnel, operations, and methods of concealing communications. Part of the meeting was captured on videotape, including a portion where Ma can be seen receiving and counting $50,000 in cash for the secrets they provided.
The court documents further allege that after Ma moved to Hawaii, he sought employment with the FBI in order to once again gain access to classified U.S. government information which he could in turn provide to his PRC handlers. In 2004, the FBI’s Honolulu Field Office hired Ma as a contract linguist tasked with reviewing and translating Chinese language documents. Over the following six years, Ma regularly copied, photographed and stole documents that displayed U.S. classification markings such as “SECRET.” Ma took some of the stolen documents and images with him on his frequent trips to China with the intent to provide them to his handlers. Ma often returned from China with thousands of dollars in cash and expensive gifts, such as a new set of golf clubs.
According to court documents, in spring 2019, over the course of two in-person meetings, Ma confirmed his espionage activities to an FBI undercover employee Ma believed was a representative of the PRC intelligence service, and accepted $2,000 in cash from the FBI undercover as “small token” of appreciation for Ma’s assistance to China. Ma also offered to once again work for the PRC intelligence service. On August 12, 2020, during a meeting with an FBI undercover employee before arrest, Ma again accepted money for his past espionage activities, expressed his willingness to continue to help the Chinese government, and stated that he wanted “the motherland” to succeed.
Ma will make his initial appearance before a federal judge tomorrow in the U.S. District Court for the District of Hawaii. He is charged with conspiracy to communicate national defense information to aid a foreign government and faces a maximum penalty of life imprisonment if convicted. The maximum sentence is prescribed by Congress and is provided here for informational purposes. In the event Ma is convicted, a federal district court judge will determine any sentence after taking into account the advisory Sentencing Guidelines and other statutory factors.
The investigation was conducted by the FBI’s Honolulu and Los Angeles Field Offices. Assistant U.S. Attorney Ken Sorenson and Trial Attorneys Scott Claffee and Steve Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.