2 indicted
for cheating city
over HPD auto parts

By Debra Barayuga
Star-Bulletin

Two former city employees have been indicted for purchasing auto parts for police cars at inflated prices and receiving kickbacks.

They also falsified invoices for the purchase of high-performance auto parts for personal use, according to the indictment.

Arrest warrants have been issued for Victor Hasebe, 55, and Winston Owan, 46, who used to work in the Honolulu Police Department's vehicle maintenance section. An Oahu grand jury yesterday charged both with first- and second-degree theft, bribery, money laundering and unlawful ownership of a business.

According to Deputy Prosecutor Randal Lee, the two purchased $800,000 worth of auto parts, often at inflated prices, from Larry's Auto Parts in Kaimuki from 1993 to 1999. The HPD did 75 percent to 80 percent of its business with Larry's, which was not on the city's list of approved vendors, Lee said.

The city was overcharged more than $25,000 for parts. Had the city known it would be paying more for the parts, it would not have paid for them, Lee said.

Purchased were commonly used parts and auto supplies, including spark plugs, antifreeze and brake fluid.

The scheme deprived vendors who submitted bids under the city's purchasing system of an even playing field and forced taxpayers to pay the higher cost for parts, Lee said.

In return, Hasebe and Owan received Las Vegas trips for themselves and their guests, cash and auto parts, Lee said.

Two employees of Larry's are also being prosecuted and have reached plea agreements in exchange for their testimony at yesterday's grand-jury session and at trial.

Hasebe worked for HPD for 17 years and left in September 2000. Owan worked for 26 years and left the department earlier this month.

Police Department officials declined comment on the ongoing investigation, which could yield more charges.

Hasebe or Owan could face 10 years in prison if convicted on the most serious charge, first-degree theft.