Liquor agent pleads
guilty to conspiracy

Lee is the fourth person to plead
guilty in the extortion probe

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By Debra Barayuga
dbarayuga@starbulletin.com

A former supervisor with the Honolulu Liquor Commission pleaded guilty yesterday to conspiring with fellow employees to extort money from liquor establishments in exchange for not inspecting or issuing citations.

David K.H. Lee pleaded guilty to conspiracy to commit racketeering and three counts of extorting bribes from bars, said Assistant U.S. Attorney Michael Seabright.

Lee is one of two supervisors named in a 57-count indictment. Three of six liquor investigators also named in the May indictment pleaded guilty earlier.

According to a plea agreement, Lee received money from various licensees and then distributed the money to a fellow supervisor and to six liquor investigators that he supervised.

"Lee specifically agrees that in return for the money that he obtained from the licensees, he agreed to perform or not perform official acts and to be influenced in his position at the HLC (Honolulu Liquor Commission)," according to the agreement. "The money paid to Lee from a licensee was not, and Lee did not consider it as, a gift or gratuity from the licensee. Rather, Lee understood and treated the money he obtained from the licensees as illegal bribes and extortion money."

According to the indictment, on Dec. 11, 2000, Lee told a liquor investigator that they should stop at London Pub in Aiea. The investigator, unbeknownst to Lee, was an undercover operative wearing a recording device.

At the club, the owner stuffed an envelope containing $200 directly into Lee's shirt pocket.

On Dec. 21, 2000, Lee also obtained "hundreds of dollars of currency, exact amount unknown," from Club Ruby and divided it with a fellow supervisor in the Liquor Commission to distribute to investigators in their office, the agreement said.

Lee did the same on Feb. 14, 2001, after he obtained an unknown amount in the "hundreds of dollars" from Satin Doll in Kalihi.

In the plea agreement, Lee has agreed to cooperate with the federal government and testify at trial if requested.

Lee and his attorney, Rustam Barbee, could not be reached for comment.

Lee will be sentenced Feb. 18. He faces a maximum 20-year prison term on each of the charges and a $250,000 fine.

Trial begins Oct. 16 for the remaining defendants.