Deal reached with
By Debra Barayuga
Ewa Villages figure
Star-BulletinA former official of a Leeward drilling company indicted last year in the Ewa Villages relocation scam has agreed to testify against former housing official Michael Kahapea.
As part of a plea agreement reached with the state, Bruce St. Germain, 40, former vice president of CMZ of Hawaii Inc., yesterday pleaded no contest to second-degree theft.
He was indicted last November for overbilling the city by about $1,600 for electrical work after CMZ's move to Honouliuli in May 1996.
Kahapea, the city's former Property Management Division chief in charge of the city's relocation projects, so far has been indicted three times on numerous counts including theft, forgery, money laundering, racketeering, bribery and failure to report income. Investigators allege Kahapea illegally hired then paid city funds to friends and relatives for bogus moves.
St. Germain's sentencing, set for July 27, will be put off until he testifies against Kahapea and all those involved in CMZ's move, Young said. Also, St. Germain has agreed to pay back the $1,600 he overbilled the city.
St. Germain could face probation or a deferred acceptance of a no-contest plea, meaning the offense would be wiped off his record if he remains arrest- and conviction-free. The state will not object to a deferral, Young said.
St. Germain was charged with billing the city $7,648.11 for electrical work needed to hook up the company at their new location. But he actually paid the electrical contractor $6,024.11, Young said.
CMZ billed the city a total of $300,000 for moving expenses. St. Germain is expected to testify that only one company moved CMZ, that actual moving expenses were $40,000 and that he never heard of the other trucking companies that allegedly helped them move, Young said.
St. Germain, through his attorney Jerel Fonseca, declined to comment on the reason for his change of plea.
While the amount St. Germain is charged with stealing may be small compared with the estimated $5 million lost in the Ewa Villages fraud, investigators want to ensure that anyone illegally taking money from the city is brought to justice, Young said. "It's important everybody who committed theft or fraud is charged."
More than 20 people have been indicted so far in the relocation projects at Ewa Villages, Middle Street and West Loch, in which the city was billed and paid for moves that were not done or done at inflated costs. Kahapea and six co-defendants are scheduled to go to trial next month.
At least three others are expected to testify against Kahapea. Shiro Aoki, who ran a bogus company called RC Movers, pleaded guilty in March to theft, forgery and money laundering. He admitted he was following Kahapea's orders.
Shirley and Donald Hall, who owned A-1 Trucking and Equipment, pleaded guilty to overbilling the city for six moves, and agreed to cooperate with prosecutors.
