Government claims Kalihi
firm’s funds

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By Leila Fujimori
lfujimori@starbulletin.com

The U.S. government has filed a federal court claim for forfeiture of $33,120 found in the safe of a Kalihi credit counseling business, although the business owner claims it was clients' money.

The cash was allegedly involved in a money-laundering operation involving proceeds from drug sales, according to the U.S. Attorney filing.

Michael Haxton, co-owner of Hawaii Credit Counseling, told customs agents on Nov. 21 that the cash was clients' money placed in the safe prior to a bank deposit, according to a Dec. 21 written declaration by U.S. Customs Special Agent Douglas Palmer that was attached to the U.S. Attorney's Wednesday filing.

On April 12 the U.S. Customs Service seized the cash, which was in a shoe box in the safe at the credit service's 1803 N. King St. office.

Haxton pleaded guilty on Oct. 19 to laundering drug proceeds through his business in exchange for heroin.

Federal authorities have been investigating Haxton and his wife Yvonne's involvement in drugs and money laundering since December 2000, when an unidentified individual was arrested on federal drug offenses.

Federal agents seized six handguns, six rifles and heroin from their home on Dec. 20, 2000, and later that day, Haxton turned over two pistols and a rifle.

Haxton later said he initially purchased small amounts of black tar heroin from 1998 to 2000 for his own use from Mexican drug dealers once every two weeks, but said he and his wife were never drug traffickers, according to Palmer's declaration.

In a plea agreement, he agreed to testify against his co-defendants, and will get no more than 20 years' imprisonment when sentenced March 4.

Haxton named Jose Nunez-Curiel as one of the drug runners that would deliver drugs to the Haxtons' Kailua home and office.

Nunez-Curiel, who ran a drug ring in Kaneohe and Kailua, was sentenced in October to seven years and a month in prison for conspiracy to distribute heroin and cocaine, illegally remaining in the United States, and money laundering.

During the latter part of last year, the Haxtons exchanged currency for the Mexican drug dealers. Their nonprofit credit counseling program would pay out about $800,000 a month to clients' creditors at its peak, and received large amounts of cash from clients, Yvonne Haxton estimated, according to Palmer's declaration.

Haxton, according to the declaration, said his wife would handle the cash exchange with the Mexicans once or twice a week at their home and, on two occasions, at the credit counseling office.

When the agents asked Yvonne Haxton about the money in the shoe box, she "admitted that she assisted Mexican drug dealers in converting their cash proceeds from drug sales, often in small denominations like $20 bills into $100 bill denominations."

Yvonne Haxton pleaded guilty on July 16 to money laundering and awaits sentencing.

An attorney for Michael Haxton could not be reached for comment.