Attorney is indicted
in fund-raising probeA company allegedly reimbursed
its workers for donations to Harris
Edward Y.C. Chun, a Honolulu trust attorney, was indicted yesterday by an Oahu grand jury for allegedly making illegal campaign contributions to Mayor Jeremy Harris.
Chun, 71, faces misdemeanor charges of using false names on campaign contributions and of exceeding the campaign contribution limits for individuals.
Chun, longtime attorney and corporate counsel for Food Pantry Ltd., a grocery store and its affiliate chain Foodland Super Market Ltd., allegedly advised three employees of Food Pantry to donate a total of $9,000 to Harris' 1996 and 2000 mayoral campaigns. Food Pantry allegedly reimbursed the employees for the contributions that were made between Aug. 1, 1996, and Feb. 28, 2000.
City Deputy Prosecutor Randal Lee said: "The contributions were disguised and not made in the name of Food Pantry, but made in the name of the employees."
Because the $9,000 came from Food Pantry, it exceeded the $4,000 legal contribution limit for individuals to a mayoral campaign. But Chun, rather than Food Pantry, was indicted for exceeding the campaign contribution limit because the grocery chain acted on his advice, Lee said.
"Food Pantry provided the money, but I have to make it clear that Food Pantry had nothing to do with it," Lee said. "The board (of directors) did not approve it, the board had no knowledge of it. So they were victimized by Mr. Chun's advice."
Lee said that Chun, as an attorney, should have known that what he was asking the employees to do is illegal.
Honolulu attorney Howard Luke, who represents the three Food Pantry employees who testified before the grand jury yesterday, said: "My clients are neither targets or suspects in the case. And Food Pantry itself is not suspected of any wrongdoing. They are not a target either."
Lee said a Harris campaign officer had solicited Chun for contributions. Lee declined to name that campaign worker.
Moments after the indictment, Chun, reached by telephone at his office, said, "I have no comment."
Chun was a confidant of the late founder of Foodland, Maurice Sullivan, and remains close to the family, which is still involved in Foodland and Food Pantry. Lee said he was unaware of similar alleged campaign contributions being made by Foodland.
Lee said the case is still being investigated. He declined to explain Chun's motivation or identify what Food Pantry may have wanted in return for its contribution. Lee stressed that "Food Pantry is the victim in this.''
Chun is the first attorney to be indicted in the 16-month investigation of the Harris campaign, which until now has focused more on architects and engineers with city contracts.
Lee said Chun's indictment "shows the wide-reaching effect of the campaign violations. It's now gone beyond just the architects and engineers. It's now extending into other areas in our community."
At the same time city prosecutors have been investigating possible campaign violations, the state Campaign Spending Commission has been conducting its own separate investigation.
Yesterday, Robert Watada, executive director of the Campaign Spending Commission, said his office is analyzing about $20,000 worth of campaign contributions from Food Pantry that look questionable.
Watada also testified yesterday before the grand jury, mostly to answer questions about false names on contributions and contribution limits.
Chun, who was not questioned before the grand jury, acknowledged that he had been questioned by the Prosecutor's Office as part of its investigation.
Lee said he would call Chun to give him the opportunity to turn himself in. He also said Chun should be released on his own recognizance because he is not a flight risk.
Lee said: "Attorneys don't get a free pass. Attorneys who violate the law will be prosecuted the same with engineers, the same with architects."
If convicted, Chun faces a fine of $1,000 for each count and one year in prison for each count. If convicted, Chun could be sanctioned by the Office of Disciplinary Counsel, which oversees lawyers' conduct.
Carol Richelieu, chief disciplinary counsel, said attorneys can be sanctioned if convicted of a felony or of dishonesty and making false statements.