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Two former state
workers sentenced
in bookmaking case

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By Debra Barayuga
Star-Bulletin

A U.S. District judge sentenced two retired Maui state employees -- one to prison, the other to probation -- for their involvement in an illegal sports bookmaking operation that used state resources.

Francis "Moody" Kahoohalahala, 55, the alleged ringleader of the group that operated out of the Department of Accounting and General Service's Kahului office, yesterday received 18 months in federal prison for conspiracy to conduct an illegal business and failure to pay a wagering tax. He was also sentenced to three years of supervised released and fined $20,000, of which $6,163 was seized from him when he was first arrested in November 1994.

Kahoohalahala's supervisor, Shigeru Sano, 75, was sentenced to one-year probation on two counts of failing to pay a wagering tax and fined $10,000 .

As of yesterday, five out of seven defendants indicted in July 1999 on various charges involving the bookmaking operation have been sentenced. The group accepted "6-5," "parlay" and "block pool" wagers during the 1994-95 and 1995-96 football seasons.

Judge Alan C. Kay, calling illegal gambling a problem in the state, said he hoped the substantial fines and prison term would serve as a deterrent to others.

In 1981, Kahoohalahala was arrested by Maui police on gambling charges which were later thrown out. The Hawaii Supreme Court ruled that it was illegal to search his trash, which had been placed at the curb . Meanwhile, he left the Police Department for a state job that eventually landed him in the DAGS office.

Ten years later, he and his wife were arrested for possession of gambling records and promotion of gambling. Both pleaded no contest and in 1993 were sentenced to total fines of $30,000, a 12-month suspended jail term and placed on five years probation until March 1998. At his sentencing, Kahoohalahala promised the Maui judge that it would never happen again.

"But it did happen," Assistant U.S. Attorney Florence Nakakuni said. While still on probation, Kahoohalahala was arrested in November 1994 by Maui Police following a search of the DAGS office where the operation had moved to avoid detection.

According to records seized in the search, one runner made over 300 wagers during a 2-day period amounting to $65,000, said Nakakuni, calling it a "very sophisticated" organization.

Phil Lowenthal, attorney for Kahoohalahala, said they don't dispute that the gambling operation existed, but deny state resources were used.

Michael Green, attorney for Sano, said unlike the other defendants, his client sold "block pools" for the Super Bowl and playoffs, and not on a weekly basis like the other codefendants.

While Sano supervised Kahoohalahala, he was not involved in and had no knowledge of Kahoohalahala's "6-5" operation, Green said.

Sano really didn't believe what he was doing was illegal, Green said. He has learned his lesson and is remorseful.

Kahoohalahala is the second former Maui police officer sentenced for involvement in the illegal operation. Gordon Cockett, a retired Maui lieutenant, was sentenced to three years probation and given a stern lecture by the judge last month for his role.