DEAN SENSUI / DSENSUI@STARBULLETIN.COM Entering federal court yesterday, union leader Gary Rodrigues, in the foreground, had his defense present closing arguments in his federal trial on embezzling, money laundering and mail fraud charges. Behind him is his daughter Robin Sabatini.

Rodrigues’ defense
wraps up

Prosecutors will make a final rebuttal
in the fraud case on Monday

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By Nelson Daranciang
ndaranciang@starbulletin.com

The attorneys representing union leader Gary Rodrigues and his daughter derided the government's case in the federal trial on embezzling, mail fraud and money laundering charges as too weak to warrant a defense.

"The vast majority of the critical facts are simply not in the record, mis-statement of the record or pure guesswork," said Doron Weinberg, lawyer for the United Public Workers state director.

Weinberg and Richard Hoke, attorney for Rodrigues' daughter, Robin Haunani Rodrigues Sabatini, made their closing arguments in the District Court trial yesterday without having presented witnesses in their clients' defense.

Assistant U.S. Attorney Florence Nakakuni told the jury in her closing argument that Rodrigues negotiated inflated dental and health insurance premiums and directed the carriers to kick back the excessive premiums to Sabatini in the form of consulting fees.

Nakakuni said Sabatini received $146,361 from the now-defunct Pacific Group Medical Association, UPW's health care insurer until 1998, and $116,981 in 1996 and 1997 from Hawaii Dental Service, the union's dental insurer.

"It's a great source of income if you do no work for it," Nakakuni said.

Nakakuni said Sabatini continued to receive kickbacks from HDS from 1998 to 2000 through a consulting company connected with her father. She said Sabatini gave some of the money to her sister and grandmother and bought a new truck for Rodrigues.

"That's not enough to prove that she was guilty, that she was part of a scheme to defraud UPW," argued Hoke. He said the government failed to prove that Sabatini did not earn the money she was paid.

Rodrigues is also charged with embezzlement for allegedly failing to inform UPW's executive board that he was receiving kickbacks from the union's life insurance carrier.

Transamerica sales agent Herbert Nishida, Rodrigues' childhood friend, had testified that he gave the UPW state director cash payments averaging $25,000 a year over a five-year period in appreciation for the union's business.

Weinberg told the jurors that Nishida's testimony is not credible because he failed to disclose what he did with other cash withdrawals he made from his account totaling thousands of dollars.

U.S. District Court Judge David Ezra admonished Weinberg out of the presence of the jury for suggesting to them without proof that Nishida may have a second family on the mainland.

Closing arguments are scheduled to wrap up Monday with the government making rebuttals to Weinberg's and Hoke's comments to the jury.