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Trial to lay out
Ewa Villages fraud

The opening statements
are scheduled tomorrow
before Judge Rey Graulty

7 others face sentencing

By Gordon Y.K. Pang
Star-Bulletin

Opening statements are scheduled tomorrow in the Ewa Villages case, in which the city estimates some $6 million was funneled into -- and then out of -- a relocation fund.

The fund had been set up to move commercial businesses from Ewa Villages, a plantation community the city has been trying to revitalize.

At the center of the case, to be tried in Circuit Court, is Michael Kahapea. He is the fired city housing official who prosecutors say was the mastermind of a scheme involving false billings to the sometimes bogus companies of family and friends.

Prosecutors have said Kahapea received 70 percent to 80 percent of the money in kickbacks.

Kahapea has been charged with 47 counts of theft, bribery, money laundering, forgery and illegal ownership of a business.

Seven of eight other co-defendants in the case have pleaded either guilty or no contest and have agreed to cooperate in the case against Kahapea. Deputy Prosecutor Randal Lee is expected to call at least some to testify.

As part of its case, the prosecution also has built up a substantial amount of paperwork, showing both the billing documentation for the alleged false work signed off on by Kahapea, and Nevada records showing that he gambled more than $1.5 million during two years despite an annual salary of $39,000.

Statements made previously by Kahapea suggest that at least part of the defense case will evolve around allegedly questionable orders on how to spend the relocation fund monies made by his superiors.

Kahapea has said that he was directed to use the money to rehabilitate homes, clean up environmental waste sites and other non-relocation projects.

But attorney Brook Hart said Donald Wilkerson, Kahapea's attorney, had better be well-prepared if he intends to argue what is known as the "superior orders defense."

"If his claim is the reason he did these things is because others were responsible that he did these things, there better be something more to that," Hart said. "There better be some kind of threat of injury or harm coming to (Kahapea) if he didn't do it that way."

Wilkerson has Mayor Jeremy Harris, former Mayor Frank Fasi and other city officials among potential defense witnesses.

The trial, before Circuit Judge Rey Graulty, is scheduled to run two months.

Standing trial with Kahapea will be Stephen Swift, charged with one count of second-degree theft. He has maintained that he is innocent.

Kahapea has also been indicted on separate cases involving the relocation funds for West Loch Estates and what is now the Middle Street bus facility. He is expected to go to trial on those charges later this year.

Additionally, Kahapea is being investigated by federal authorities in other projects sponsored by the now-dissolved city housing department.

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7 face sentencing
in the case in December

Star-Bulletin staff

Seven defendants in the trial involving the Ewa Villages relocation scam have pleaded out of the case. Sentencing for all is scheduled for December.

They are:

David Brian Kaahaaina: Pleaded no contest April 28 to second-degree theft and money laundering. He is president of American Hauling and Trucking, which the state said was paid for moves not made.

Donna Hashimoto-Abelaye: Pleaded no contest April 17 to first-degree theft, money laundering and failing to report income for tax purposes. She was president of Specialty Pacific Builders, which the state contended falsely billed the city for moving work not done.

Benton Post: Pleaded guilty in August 1999 to false billings. He was affiliated with Aloha State Tours, which was located in Ewa Villages. The state charged he submitted false billings for the company's moving expenses.

Claude Hebaru: Pleaded guilty April 13, 1999, to first-degree theft, money laundering and failing to file tax returns on income. Prosecutors said he created Titan Moving and Hauling to launder money based on moves not made.

Bruce St. Germain: Pleaded no contest June 1, 1999, to second-degree theft. He was the former vice president of CMZ of Hawaii, which the state said overbilled for both relocation expenses and electrical contracting.

Shirley Hall: Pleaded guilty March 19, 1999, to first-degree theft and failing to report income on her tax return. She was co-owner, along with husband Donald, of A-1 Trucking and Equipment, which overcharged the city for moves either not done or done at inflated prices.

Donald Hall Sr.: Pleaded guilty June 25, 1998, to theft, forgery and money laundering. He was co-owner, with his wife, Shirley, of A-1 Trucking and Equipment, which overcharged the city for moves either not done or done at inflated prices.

Two other defendants have died.