Ewa Villages
restitution sought

The state wants to tap Michael
Kahapea's city retirement benefits

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By Debra Barayuga
dbarayuga@starbulletin.com

The state wants convicted city employee Michael Kahapea to give up his monthly retirement benefits to repay $3.7 million he stole from the city's Ewa Villages relocation project.

Deputy Prosecutor Randal Lee said the former housing official has the ability to pay restitution through his future retirement benefits.

Kahapea, 58, was convicted last October for his role in the scheme that funneled city checks totaling $5.8 million to him and other co-defendants for moving work that was never done or performed at inflated costs. He was sentenced to 50 years in prison.

Wesley Machida, assistant administrator of the state Employees' Retirement System, testified yesterday that when Kahapea reaches 65, he will begin receiving a maximum $497 per month based on his years of service with the city and salary amounts.

Lee said the $3.7 million the state is seeking from Kahapea includes $1.6 million in cashier's checks he benefited from directly. Kahapea used the money to pay off loans and gambling debts at Las Vegas casinos and make mortgage and maintenance fee payments.

Kahapea should also, at the minimum, be found equally and jointly responsible for 50 percent of the $4.2 million received by his co-defendants, Lee said.

Seven co-defendants have admitted to receiving city checks for overbilling or for moving work that was not performed and kicking back between 50 percent and 85 percent to Kahapea. They have been ordered to pay restitution in amounts ranging from $19,000 to as much as $407,781.

Kahapea's attorney, Don Wilkerson, said Kahapea does not dispute he is responsible for the $1.6 million in cashier's checks he received. But the state has not shown where it got the remaining $2.1 million from.

"Mr. Kahapea is willing to attempt to pay whatever restitution this court orders for the money he had taken, but the evidence is insufficient to support the finding of restitution," Wilkerson said.

Donna Hashimoto-Abelaye, the last remaining co-defendant in the Ewa Villages case, will be sentenced Sept. 19.

Circuit Judge Reynaldo Graulty said he will rule on the state's request for restitution after Hashimoto-Abelaye's sentencing and after a final hearing date on Sept. 26.