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Alleged casino in
condo pulling out
after long fight
Princess Leilani officials
By Ian Lind
have waged a nine-month
campaign to kick out a
suspected gaming den
Star-BulletinDirectors of the Princess Leilani, a Kapiolani area condominium, are preparing to celebrate the ouster of a suspected gambling casino from a 19th-floor apartment after a nine-month battle.
"They're pulling up stakes and leaving," said Oswalt Ellis Jr., treasurer of the Princess Leilani owners' association. "But you've got to watch where the game moves to next."
If the alleged casino closes down and moves out as expected, it will mark a victory for the directors and management of the 136-unit high-rise, who have had to tackle the problem without direct assistance from police.
"We're not really sure what scared them off," said Gwyn Butchka, owner of Alii Ohana Property Management Inc., which provides management services to the Princess Leilani.
Butchka said the owner of the 19th-floor apartment, a Honolulu resident, had not responded to three warning letters, but a recent crackdown on illegal gambling that included raids on several nearby buildings could have hastened the casino's departure.
Sgt. Joe Whitaker of the Honolulu Police Department's gambling detail said he could not disclose whether the Police Department has received complaints from the Princess Leilani or taken any action, but condo owners say their attempts to get police intervention were unsuccessful.
Joe Liao, Princess Leilani resident manager, said unusual numbers of people began visiting the apartment late last summer. Small groups, some apparently led by well-dressed hostesses, were observed arriving day and night, and neighbors complained about noise from the 24-hour-a-day operation.
Rumors of gambling were whispered through the building.
But apartment owners soon learned a harsh lessons of condominium life:
Illegal activities such as gambling, prostitution and drug dealing are increasingly common in Honolulu condos, but are not easy to stop when taking place behind closed apartment doors.
"Drugs and prostitution have been a big problem in Waikiki condominiums," said Joyce Neeley, a Honolulu attorney whose clients include many condominium associations.
Butchka agreed. "It's pretty rampant," she said.
"But when you call the police and say you suspect a problem, they want to know what you have to support allegations and suspicions," Butchka said. "The problem comes when you have to be able to provide proof positive."
Neeley said condominiums have to be careful because of possible libel or slander charges if someone is accused of running an illegal business and the charges later turn out to be wrong.
"You can't write and say the tenant is running a drug or prostitution operation, because if they're not, we could face serious liability," Neeley said.
Century Center, another Kapiolani-area condo, faced similar problems last year when a casino opened in a penthouse apartment, according to attorney Milton Motooka.
Only invited guests could enter the apartment, so the building's manager could not get direct evidence of gambling. And police and prosecutors can't take action merely on suspicions voiced by other residents.
Motooka said the Century Center board hired a private investigator to compile evidence after initial requests to law enforcement agencies failed to bring official action. "You need to persevere," Motooka said. "If you make an initial inquiry (to police) and fail to follow up, chances of getting assistance diminish."
Attorney John Morris, former Real Estate Commission condominium specialist, said condominiums must carefully document suspected illegal activities.
"Keep track, keep a log, and make sure you get adequate proof," Morris said. "It's really a matter of being very systematic."
At the Princess Leilani, directors started recording descriptions and license numbers of cars using the visitor parking area, and collected descriptions of repeat visitors to the suspected casino.
Neeley said after documenting a problem, she writes a letter to the owner of the apartment explaining the facts, but without making specific allegations of criminal activity.
"People are coming and going at all hours, there may be chemical smells indicating illegal drugs, and because of these activities we're concerned about possible illegal activities," Neeley's letter might say.
Condominiums also face a risk of violence when dealing with illegal businesses.
"We've had managers seriously hurt trying to enforce the rules," Neeley said. Managers, security officers, and even directors are vulnerable to threats, she said.
