2nd liquor inspector Issuing citations to local night clubs was a good way to get club owners to realize the benefits of paying off city liquor investigators, one of eight investigators charged with accepting bribes said in a secretly taped recording.
pleads guilty
5 other city employees are due
to go on trial in October on
charges of demanding bribesBy Debra Barayuga
dbarayuga@starbulletin.com"The reality of it is, things like this have to happen, so she appreciate your worth," liquor investigator Samuel K.Y. Ho told a fellow investigator after accepting $100 from the owner of Club New Lotte on Dec. 20, 2000.
Yesterday, Ho became the second Honolulu Liquor Commission investigator to plead guilty in U.S. District Court to conspiracy to commit racketeering and three counts of extortion. He also agreed to testify against his codefendants at trial, set for Oct. 16.
"Basically, I accepted money from certain licensees in order to overlook violations and continued to do this for a period of time," Ho, 43, told U.S. Magistrate Kevin Chang when asked to summarize his offenses.
He and five other investigators with the Liquor Commission, as well as two retired supervisors, were indicted May 22 after a yearlong investigation by the FBI and Honolulu police.
Fellow investigator Kenneth Wright pleaded guilty July 2.
Ho's comments are among dozens of recordings secretly taped by a fellow investigator that prosecutors say reveals the conspiracy by Ho and colleagues at 45 liquor establishments. Investigators received payments ranging from $40 to $1,080 per visit mostly from hostess bars, according to the indictment.
According to Assistant U.S. Attorney Michael Seabright, the investigators shared with each other which establishments were paying bribes and split the payments, often in the offices of the Honolulu Liquor Commission.
The practice apparently had been going on for an unknown period before October 2000 to December 2001 -- the period charged in the indictment and during which a liquor investigator agreed to secretly tape conversations with colleagues.
In a plea agreement, Ho admitted he went to Club New Lotte on Dec. 20, 2000, and obtained $100 from the owner who previously had been cited.
He told the undercover investigator who accompanied him that he had overlooked many violations at her bar and that she had previously paid him $200. Had New Lotte not been cited earlier, the owner would have given him another $200, Ho said, according to the plea agreement.
Ho also admitted to obtaining $300 from the owner of Club Mimi on Feb. 7, 2001.
Earlier that day, in the Liquor Commission office, the undercover investigator told Ho that he and another investigator, Collin Oshiro, each got $300 from Club Mimi. Ho at the time noted, "Maybe we better go there first."
Ho asked Wright if he wanted to tag along. After Wright responded, "Where you going? Strong arm?" the two went to Club Mimi.
Ho told the undercover investigator later that night that he told the owner of Club Mimi he was going to stay at the club for a long period but the owner objected, saying, "No, I no can make money."
He said the reason why the owner paid him $300 was "a reflection of how serious she is" or how well the club is doing.
"The token that she gave this time, trying to tell us she very serious about her business ... she want absolutely everyone's cooperation," Ho said.
Ho faces up to 20 years in prison and fines of up to $250,000 on each count. He will be sentenced Jan. 13.
Six remaining co-defendants have all pleaded not guilty except for Eduardo C. Mina, whose whereabouts are unknown, Seabright said.
City & County of Honolulu
