Firm fined $3,000
over political giftsThermal Engineering gave
excess donations to several
Democrats
A state judge fined a local engineering company $3,000 yesterday and ordered it to conduct 105 hours of community service for making illegal political donations to several prominent Democrats.
District Judge Lono Lee gave Thermal Engineering Corp. the opportunity to have its criminal case dismissed if it stays out of trouble for a year, and denied prosecutors' request that the company be placed under probation for a year.
"Thermal Engineering did take corrective actions," the judge said. "Probably after this experience, the company will not engage in this practice."
Between 1997 and 2001, Thermal Engineering gave excessive political donations to Mayor Jeremy Harris, former Gov. Ben Cayetano and ex-Maui Mayor James "Kimo" Apana, according to a Nov. 7 penal summons filed by prosecutors in state District Court.
The complaint did not name any company employees, who are not targets of prosecutors' two-year criminal investigation into illegal political fund raising.
Howard Luke, Thermal Engineering's attorney, said the case involves "solid citizens who were swept up" in a campaign practice that likely dates back to the days of former Mayor Frank Fasi and ex-Gov. William Quinn. He noted that his client's board of directors voted last week to ban corporate contributions to local political candidates.
Unlike other high-profile contractors who have been indicted on charges of making political contributions under false names, Thermal Engineering and its officers did not attempt to conceal their contributions, Luke said.
"In Thermal's case, everything was laid out on the table," Luke said.
Deputy Prosecutor Randal Lee opposed the granting of a deferral, saying Thermal Engineering gave more than $22,000 to the Harris campaign alone.
He said the practice of making excessive political contributions to incumbent politicians hurts the campaigns of political challengers, who do not "have the power to issue contracts and give jobs."
Yesterday's sentencing came nearly two years after Thermal Engineering agreed to pay a $31,000 fine to settle the state Campaign Spending Commission's charges that the firm made $55,000 in illegal political contributions since 1997.
According to the commission, Thermal Engineering contributed $20,000 to Cayetano and about $16,000 to Harris during the past several elections.
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.