Former state official A contractor seeking repayment from the state for work allegedly done by a subcontractor is what spurred an investigation into the theft of about $1 million from various state construction projects.
admits guilt in
plan to steal
construction funds
Prosecutors expect to indict
other individuals but think
Fidel Eviota II was the mastermindBy Debra Barayuga
dbarayuga@starbulletin.comThat investigation led to the arrest in July of former Department of Accounting and General Services project engineer Fidel Eviota II, who had overseen multiple state projects, including the state Capitol and Aloha Stadium renovations.
Eviota, 52, of Waianae, pleaded guilty yesterday to first-degree theft, money laundering and illegal operation of a business in a scheme that occurred between August 1995 and June 1999. He left the department in November 1998.
The state believes the amount stolen was closer to $1 million, but Eviota agreed to $759,617 as the amount he benefited from personally and has agreed to pay restitution in that amount.
His attorney, Scott Collins, said Eviota understands he made a "severe lapse in judgment" and took the first step in taking full responsibility by pleading guilty as charged.
Prosecutors expect to indict other individuals in the case but believe Eviota was responsible for concocting the scheme and getting contractors to along.
"Mr. Eviota held a very high position," said Deputy Attorney General Chris Young. "He had the discretion to oversee a lot of the construction projects, and, therefore, he had power over a lot of these contractors."
Eviota oversaw inspectors who went out and inspected the project sites. He worked with contractors and designers to make sure the projects were completed as scheduled and within budget.
The department recognized his work by selecting him DAGS "Employee of the Year" in fiscal 1996. At the time, he had been with DAGS for four years.
Before joining the state, Eviota had worked as an engineer for the city, Young said.
As part of the scheme, Eviota persuaded various unnamed construction contractors to make payments to bogus subcontractors for work that was never performed or for materials that were never used on state projects.
The contractors would then get reimbursed by the state.
The subcontractors who received checks were Roland's Electronics, Eviota's father-in-law Ramon Duran and friend Jovito Davila. None were legitimate construction subcontractors on any state construction projects.
Checks written to Roland's Electronics were cashed by owners Roland or Elna Geyrozaga, who kept 9 percent and kicked back 91 percent to Eviota, Young said.
Duran and Davila deposited their checks into a joint credit union account established in their and Eviota's names. Eviota was able to withdraw directly from the account.
"He used that as a conduit for him to get the money so the checks weren't written directly to him," Young said.
Young would not say if the Geyrozagas, Duran or Davila face criminal charges. They could not be reached for comment.
Whether the state will be able to recover all of the $759,617 is uncertain. The state has learned Eviota used the money for personal purposes, including building several homes on property he owns in Maili. The state so far has asked Eviota to turn over one property that he allegedly purchased using state money.
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