Janitorial contractor denies cheating city
A Pearl City businessman pleaded not guilty yesterday to charges he pocketed money he was not entitled to from contracts his janitorial company held with city facilities.
Nelson Aguinaldo, 42, president of Diversified Janitorial Services Inc., was indicted last week on four counts of theft and one count each of racketeering and money laundering over a five-year period beginning in 2000.
His attorney, Todd Eddins, defended Aguinaldo as an "honest, hard-working businessman" who has never received any complaints about his business and always engaged in "aboveboard business practices."
The investigation stems from Aguinaldo's former wife, who is making a "concerted effort to sabotage Mr. Aguinaldo's business" and now works for a rival company, Eddins said.
Aguinaldo was responsible for the operations of his company while his then-wife controlled the finances. "During and after their divorce, she threatened to ruin Nelson and his new family," Eddins said.
After she began working for a competitor, Aguinaldo uncovered "questionable financial transactions," initiated an audit and instituted new financial controls, Eddins said. "He's always engaged in aboveboard business practices, and we'll show that during trial."
Aguinaldo's ex-wife could not be reached for comment.
Aguinaldo turned himself in to state sheriffs Thursday and posted bail. Trial has been for July 10.
According to prosecutors, Aguinaldo failed to provide the required number of workers for jobs at the Kapolei Police Station and the Honolulu police training center in Waipahu. He allegedly charged the city the full contract price and pocketed the difference, about $22,000, prosecutors said.
Aguinaldo also allegedly paid his employees less than the prevailing public-employee wages, resulting in lost wages of more than $64,000, prosecutors said.
Another theft charge stems from Aguinaldo allegedly taking paper products worth between $300 and $20,000 that were intended for city facilities and selling them to another private company.
Prosecutors said Aguinaldo put the proceeds from the thefts into his company's bank account and used some of it to continue operating his business.
Prosecutors successfully requested that bail be set at $100,000 because of the alleged continuing nature of the conduct and indications that Aguinaldo is a flight risk.
Eddins said he will ask the court to reduce his client's bail.