Firm loses A state judge has struck down a legal challenge by the head of a local engineering firm that is under investigation by the state Campaign Spending Commission.
challenge to
audit bank files
A circuit judge refuses to quash
a subpoena for SSFM bank recordsBy Rick Daysog
rdaysog@starbulletin.comCircuit Judge Sabrina McKenna denied yesterday a request by SSFM International Inc. Chief Executive Officer Michael Matsumoto to throw out the subpoena for his banking records, saying there was "insufficient evidence" to do so.
McKenna ruled that the subpoenas were issued within the commission's authority to conduct random audits into political contributions. She denied Matsumoto's claim that the subpoenas were overly broad, saying the commission "narrowly tailored" its request for the records.
"This is not a fishing expedition at this point," she said.
In court papers filed March 15, the commission alleged that SSFM operated a political slush fund to funnel thousands of dollars to the political campaigns of local Democrats.
A commission private investigator said in court papers that Matsumoto used a special account at First Hawaiian Bank's Waikiki branch to advance money to friends and relatives to make political contributions.
The investigator, Terry Pennington of Goodenow Associates Inc., said the commission is looking into whether the firm made campaign donations under false names.
The Star-Bulletin previously reported that relatives of the firm's top officers contributed nearly $200,000 to several local Democrats, including Honolulu Mayor Jeremy Harris, Maui Mayor James "Kimo" Apana and Gov. Ben Cayetano.
SSFM, one of the state's largest engineering firms, has received millions of dollars in nonbid contracts from various state and county agencies.
Matsumoto and SSFM had asked McKenna to quash or modify the commission's Feb. 8 subpoena calling for numerous banking records and financial documents on the grounds that it was overly broad and created a burden for the company.
Steven Hisaka, SSFM's attorney, says he believes the commission is abusing its powers.
In a related matter, the commission squared off in federal court yesterday with lawyers for the Harris campaign and the Democratic National Committee.
The Harris camp and the national committee were asking U.S. District Judge Susan Oki Mollway to issue a preliminary injunction against the commission after it filed a complaint against the campaign for failing to report more than $100,000 in "soft money" it raised two years ago on behalf of the committee.
Chris Parsons, attorney for the Harris campaign, said the commission is violating Harris' free-speech rights by questioning his fund-raising on behalf of the Democratic National Committee. He believes the complaint is part of a "broad range of attacks" by the commission against the Harris campaign.
Deputy Attorney General Gary Kam argued that state law required the Harris campaign to register all funds it raises for a national party.
The commission also is looking into whether the Harris campaign sent money to the DNC with the idea of getting back some of the money.
Parsons said the DNC does not return money to candidates.
Mollway made no ruling, but said she is inclined to dismiss the Harris campaign's motion. She said she did not think federal court was the right place to challenge the commission's complaint since the campaign would be able to state its legal challenges during the commission's administrative hearings.
Granting an injunction could halt all commission investigations, Mollway added.