Airport contractor
admits he rigged bidsHe will testify against others
who allegedly were in on the
scam at Honolulu AirportBy Sally Apgar and Mary Vorsino
sapgar@starbulletin.com mvorsino@starbulletin.comA Honolulu contractor has pleaded guilty to first-degree theft in connection with the state attorney general's two-year investigation of contract fraud at Honolulu Airport.
Arthur K. Inada, 61, admitted he won contracts for repair work at the airport by submitting rigged bids. He said he worked in cooperation with two other contractors also involved in the scheme, who helped ensure that Inada won the bid by being the lowest bidder.
The attorney general's office said that Inada secured the winning contracts because "certain highly placed employees" at the airport would only notify a small circle of contractors, all of whom were allegedly in on the scheme, about repair work contracts.
Prosecutors said Inada would then overbill the state once he won a contract and use a portion of that money to pay kickbacks to the airport employees.
Inada has estimated that more than $100,000 in kickbacks were paid over the five-year period covered by his plea, according to the attorney general's office.
As part of a plea agreement reached with the state, Inada will testify against others involved in the alleged kickback scheme, said Deputy Attorney General Lance Goto.
The maximum penalty for first-degree theft is 10 years in prison and a $25,000 fine. Inada's sentencing has tentatively been set for May 12.
The attorney general's office said it will not make a recommendation on Inada's sentence until officials have reviewed the extent of Inada's cooperation in the scheme.