Ewa Villages
grand jury indicts eight;
more predicted

A fired city chief indicted
on 47 counts will turn himself in,
a lawyer says

By Gordon Y.K. Pang
Star-Bulletin

Michael Kahapea was the key figure behind an Ewa Villages scheme that bilked the city out of more than $5.5 million, according to city prosecutors.

But Kahapea's attorney, Renee Yuen, says her client is being used as a scapegoat for the project's failure.

Kahapea, fired Property Management Division chief, was among eight people indicted by an Oahu grand jury yesterday. Prosecutors said the indictments are only the first in a series. Before yesterday, at least 19 people had been arrested but not charged since investigators began looking into Ewa Villages late last year.

According to prosecutors, city relocation funds were given to sometimes bogus companies for work done at exorbitant costs or not done at all.

Kahapea was indicted on 47 counts -- 23 counts of first-degree theft, three counts of second-degree theft, 11 counts of second-degree forgery, five counts of unlawful ownership or operation of a business, two counts of money-laundering, one count of bribery and two counts of failure to report income.

A bench warrant was issued for his arrest with bail set at $460,000.

Yuen said that neither she nor her client had seen the indictment yesterday afternoon and that he would surrender when asked to.

"There are other suspects out there," Deputy Prosecutor Randal Lee said.

"We are still reviewing the documentation, talking to witnesses, and we are proceeding in terms of potentially more (indictments)."

New indictments are not expected until late June, Lee said.

Yuen said the city has unfairly painted Kahapea as the center of the Ewa Villages problems.

"He is not willing to accept responsibility for those people above him and around him, and their actions contributed to the controversy surrounding Ewa Villages," Yuen said. "He was not solely responsible for what happened out there. There were others who were involved in giving him directions in terms of the work that needed to be done, how the work would be funded, and how the work would be paid to the contractors."

An independent audit done last year estimated that the city will lose as much as $26.6 million from the Ewa Villages revitalization project, which was to rehabilitate aged plantation homes by redeveloping sections of the neighborhood.

City Corporation Counsel David Arakawa said those in the Housing Department are relieved that there's some closure to the case that harmed the agency's reputation.

"The media tends to look at it as the city or this department, and not as these individuals (indicted and suspected of wrongdoing)," he said.

The Housing Department will be dissolved July 1.

The city, through a lawsuit, wants to recover at least some of the stolen money, he said, and one of the targets will be Kahapea.

The others indicted yesterday:

Norman Tam, the city's former fair-housing officer now fighting his termination. Prosecutors said he helped push the bidding process along. Bail was set at $330,000 on 33 counts of theft, forgery, unlawful ownership or operation of a business, money laundering and bribery.

Russell J. Williams, owner of R.J. Hauling, one of the companies that allegedly billed for bogus moves totaling more than $1 million. Williams is Kahapea's brother-in-law and a partner in his Las Vegas water purification business. Bail was set at $220,000 on 24 counts of theft, forgery, unlawful ownership or operation of a business, money laundering, bribery and failure to report income.

Clyde Hebaru, owner of Titan Moving and Hauling, a company that allegedly billed more than $2 million for moves not completed. He has been arrested, but not charged, in connection with relocation payments made involving the site of the bus barn on Middle Street. Hebaru paid Williams, Abelaye, Kaahaaina or their companies cashier's checks tied to city warrants. Bail was set at $315,000 on 33 counts of theft, forgery, unlawful ownership or operation of a business, bribery and failure to report income.

Donald Hall Sr., owner of A-1 Trucking and Equipment, who allegedly billed an exorbitant amount for a self-move. Bail was set at $22,000 on eight counts of theft, forgery, unlawful ownership or operation of a business, and money laundering.

Donna Hashimoto-Abelaye, co-owner of Specialty Pacific Builders, who allegedly overcharged for moves. Prosecutors said letterheads from other, fictitious bidders of city contracts were found in her office. Bail was set at $33,000 on 11 counts of theft, forgery, unlawful ownership or operation of a business, money laundering and failure to report income.

David Brian Kaahaaina, doing business as American Hauling Co., who allegedly billed for moves that never occurred. Kaahaaina is also a director/partner in Kahapea's business and a personal friend. Bail was set at $23,000 on nine counts of theft, forgery, unlawful ownership or operation of a business, and money laundering.

Steven Swift, owner of Transcend, a moving company that allegedly overbilled for a move. Bail was set at $1,000 on one charge of theft.

All the charges carry penalties with a minimum of five years.