The head of one of the state's largest engineering firms pleaded no contest today to a charge that he laundered thousands of dollars in campaign contributions to Honolulu Mayor Jeremy Harris' political campaign. Isle exec pleads no contest
to money laundering
in Harris’ campaignMichael Matsumoto, CEO of SSFM,
will be sentenced on July 15
By Rick Daysog
rdaysog@starbulletin.comMichael Matsumoto, chief executive officer of SSFM International Inc., also pleaded no contest to a misdemeanor charge that he made political donations under false names.
Upon sentencing, the 57-year-old Matsumoto will become the first person convicted in city prosecutors' year-old criminal investigation into allegations that the Harris administration awarded millions of dollars in nonbid city contracts to large political donors. Matsumoto, who appeared before state Circuit Judge Karl Sakamoto this morning, changed his plea from not guilty, averting a trial that was to begin on Feb. 24.
He and his attorney Howard Luke declined comment.
Under a plea agreement, the prosecutor's office agreed not to charge Matsumoto with theft and other campaign fund-raising violations in exchange for his no contest plea.
Prosecutors also will not seek campaign-related charges against SSFM and more than a dozen of Matsumoto's relatives, friends and employees. Prosecutors have alleged that Matsumoto laundered tens of thousands of dollars in contributions through friends and relatives.
The plea agreement also calls for prosecutors to recommend probation instead of jail time for Matsumoto.
Under state law, Matsumoto could have faced up to 10 years in jail and a fine of up to $25,000 for the money-laundering charge. Making a false-name contribution is a misdemeanor punishable by up to a year in jail and a $2,000 fine. Sentencing has been set for July 15.
According to records compiled by the state Campaign Spending Commission, the SSFM firm has given about $400,000 in political donations to more than half a dozen local political candidates during the past decade.
Nearly half of that went to the Harris campaign, while former Gov. Ben Cayetano's 1998 re-election bid received more than $100,000.
Under state law, a donor can give no more than $4,000 to a mayoral candidate and $6,000 to a gubernatorial candidate during a four-year election cycle.
SSFM is a major contractor for the city and served as its consultant for the $45 million Central Oahu Regional Park project, which has incurred millions of dollars in cost overruns. City records reviewed by the Star-Bulletin showed that SSFM's nonbid consulting contract for the sports complex soared to $3.2 million from $932,000, as a result of four amendments.
City officials have said political donations play no role in the awarding of nonbid contracts.
In addition to Matsumoto, SSFM Vice Presidents Norman Kawachika, Clayton Wong, Warren Sato and June Takushi (the wife of SSFM Vice President Lee Takushi) have been charged with making campaign donations under false names to the Harris campaign.