Saturday, June 23, 2001

Clayton Haumea ordered
to pay restitution in
city fraud case

By Debra Barayuga

A man who did moving work for the city but kicked back a portion of the payments to former city housing official Michael Kahapea was sentenced to five years' probation and 300 hours of community service.

Circuit Judge Richard Perkins also ordered Clayton Haumea, 55, yesterday to pay restitution of just over $47,000.

Haumea was one of three defendants scheduled to go to trial with Kahapea in a kickback scheme involving two redevelopment projects at Middle Street and West Loch.

The scheme is identical to that in the Ewa Villages scandal where the city was overcharged for relocation work or billed for work not performed. Kahapea was convicted in that theft case, which cost taxpayers nearly $6 million, the largest fraud in the city's history.

Kahapea, in charge of city relocations, funneled moving work to companies owned by friends, family or to tenants being asked to relocate in return for kickbacks.

Haumea's attorney, Michael Green, said unlike other Kahapea co-defendants, his client actually did the jobs he was paid to do. "There was never a time he didn't work for the money he got."

He said Haumea was duped by Kahapea as others were. But when faced with an opportunity to make a lot more money illegally, he walked away from it.

One of the jobs Haumea did cost him between $8,000 to $10,000. But when Haumea learned that Kahapea had billed the city for $80,000, he told Kahapea he did not want anything to do with him anymore, Green said.

The state opposed Haumea's request to defer his plea, which would have allowed him to erase his conviction if he abides by the court's conditions.

While Haumea did actual work, the city overpaid for the work done at Middle Street and West Loch, said Deputy Prosecutor Randal Lee.

The state asked that Haumea repay the city $26,500 in the Middle Street case and $20,651 in the West Loch case.

Haumea agreed to testify against Kahapea in the Middle Street and West Loch trials but will not have to since Kahapea has since changed his plea.

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