Ex-liquor inspector
gets city settlementHis lawsuit alleged retaliation
for his cooperation in an FBI
probe of corruption
The city has agreed to pay $387,500 in damages to a former Honolulu liquor investigator who blew the whistle on fellow inspectors for allegedly accepting bribes in exchange for overlooking liquor violations at bars and strip clubs.
Charles Wiggins, 46, filed suit in September against the city, Liquor Commission Administrator Wallace Weatherwax, commission Chairman John Spierling and eight investigators, alleging they violated his civil rights and the state's Whistleblower Protection Act when they retaliated and discriminated against him for cooperating with a federal investigation.
The 2 1/2-year federal investigation, which began in October 2000, resulted in Wiggins testifying before a federal grand jury that brought indictments against his fellow liquor investigators. Three face trial in November in U.S. District Court on charges of extortion and conspiracy to commit racketeering. The other five have since pleaded guilty to one count each of extortion and conspiracy, and are expected to testify at trial.
The city makes no admission of liability, said attorney Andrew Winer, who represents Wiggins.
Attorney Randall Yamamoto, whose law firm was hired to represent the city and the Liquor Commission in this case, confirmed the settlement was put on record yesterday in U.S. District Court, but said it will not be funded until October, pending City Council approval.
In his suit, Wiggins alleged that his supervisors failed to control, investigate and fix the corruption and that he was denied workers' compensation benefits.
Wiggins had filed the claim in December 2001 and went on leave due to the "enormous stress" he was going through at work while cooperating with the FBI. During conversations with other liquor investigators, he was told that if anyone squealed on the commission's corrupt practices, they "could expect to be killed," according to the suit.
"It was pretty well known that if anyone cooperated with the FBI, their life was in danger," said Winer yesterday. Wiggins' concern for his safety was the main reason why he went on leave, he said.
The city fought the workers' compensation claim but awarded Wiggins a lump sum payment of $43,000 in January.
As part of the workers' compensation settlement, Wiggins had to give up his employment at the Liquor Commission, where he has worked since July 1994. He was a Honolulu police officer for nine years but retired from the department after suffering a serious injury.
Wiggins has since moved to the mainland because of concerns for his safety, Winer said. He is expected to testify against his former colleagues.