Rodrigues’ lawyer opts
to mount no defense

The jury could begin deliberations
in the fraud trial today after
closing arguments

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By Debra Barayuga
dbarayuga@starbulletin.com

The attorney for Gary Rodrigues rested without mounting a defense yesterday, saying the government had not proved the charges of federal mail fraud, money laundering and embezzlement against the Hawaii union leader.

Defense attorney Doron Weinberg called no witnesses, and the United Public Workers state director chose not testify in the U.S. District Court trial.

Richard Hoke, counsel for Rodrigues' daughter, Robin Haunani Rodrigues Sabatini, also rested without giving opening statements or calling any witnesses.

The jury could begin deliberations today after hearing closing arguments.

Rodrigues is accused of embezzling from the union by negotiating dental, medical and life insurance premiums for the 13,000-member UPW and causing consulting fees to be paid to Sabatini without the knowledge or approval of the union's executive board.

Rodrigues and his daughter are also charged with defrauding a health care benefit program, mail fraud and money laundering.

In addition, Rodrigues is charged with receiving kickbacks in connection with the union's life insurance benefit plan.

Weinberg said Rodrigues' decision not to testify was not because Ezra denied their motion for an acquittal earlier yesterday.

"We rested our case because we are absolutely convinced the government failed to prove Gary Rodrigues or Robin Rodrigues (Sabatini) committed any crimes," Weinberg said outside the courthouse.

He criticized the government of throwing allegations at the defense and expecting Rodrigues and Sabatini to disprove them.

"It's not necessary and it's not fair for them to take the stand and prove they're innocent," Weinberg said.

Assistant U.S. Attorney Florence Nakakuni and Lynn Panagakos, trial attorney with the U.S. Department of Justice, could not be reached for comment.

Earlier yesterday, Federal Judge David A. Ezra ruled that the government had presented relevant evidence for the jury to prove each of the 102 charges against Rodrigues and Sabatini.

But Ezra precluded the government from continuing to argue that Rodrigues had obtained money by making materially false statements and that he knew the statements were false or that he omitted facts that he had a duty to disclose.

Ezra said the government did not present any evidence that either Rodrigues or his daughter had made any fraudulent statements or that they committed fraud by omission.

But Ezra did not dismiss the count because he felt the government had established its alternate theory, that Rodrigues had schemed to deprive union members of his honest services.

Weinberg is expected to renew the motion for acquittal today.

He said the government did not prove Rodrigues negotiated premiums, that Sabatini was not a consultant and/or was not entitled to the payments she received.

Prosecutors also failed to prove that the union's life insurance plan was covered under the federal Employee Retirement Income Security Act, which prohibits the receipt of gifts and gratuities, Weinberg said.

Rodrigues is accused of accepting kickbacks from his childhood friend Herbert Nishida, an agent with Transamerica, which provided life insurance policies to UPW.

Nishida testified he had given Rodrigues cash payments averaging $25,000 over a five-year period in appreciation for the UPW's business and the help he had received over the years.

Weinberg defended the practice of giving gratuities, saying that is the way it is done in business.

"If you don't give, its considered ungrateful," he said.

Weinberg said the government failed to call witnesses who could testify specifically on whether certain activities were proper or improper "because they're trying to make Gary Rodrigues look bad and have us explain it."

Panagakos had argued Tuesday that the government had presented sufficient evidence that Rodrigues and his daughter participated in a scheme to defraud the union for their personal benefit.

She said after Rodrigues and his daughter were indicted in March 2001, he showed "consciousness of guilt" by shredding documents detailing consulting payments sent to his daughter's company and the stepfather of his former longtime girlfriend.

Former UPW President Adaline Uhrle had also testified that Rodrigues, after the indictment, told the executive board that he had acted under their direction and that they were as guilty as he was.