Campaign donor pleads
no contest to fund fraud

A former engineering firm's CEO
likely will ask to defer his plea

The former chief executive of one of the state's largest engineering firms pleaded no contest yesterday to money laundering and making illegal campaign contributions using the names of family, friends and employees.

But Larry K. Matsuo, 78, former president of Park Engineering, is expected to ask Circuit Judge Richard Perkins to defer his no-contest plea when he returns to court Jan. 19 for sentencing.

Defense attorney Darwin Ching said a deferral, which would enable Matsuo to erase the charge from his record, is appropriate because of his advancing age and because Matsuo, who is now retired and no longer working, cooperated in the investigation by giving a statement.

The white-haired Matsuo had difficulty hearing questions being asked of him by Perkins yesterday. His doctor recently pronounced him fit to proceed with his criminal case.

While jail may not be appropriate for Matsuo, who has deteriorated physically from the time he spoke with investigators, the state will oppose a deferral, said Deputy Prosecutor Randal Lee.

The prosecution has been opposing deferrals in illegal campaign contribution cases because a conviction could cause defendants to lose their board licenses and affect their ability to obtain government jobs, Lee said.

"You can put them in jail, but they'll come out and go back on their merry way," he said. "You've got to hit them where it will hurt their livelihood or profession."

Park Engineering, a government contractor, has been linked to more than $80,000 in questionable contributions to Harris' campaign. It received more than $5.5 million in nonbid consulting work from the city over the past eight years.

Matsuo, like many of the other individuals charged with similar violations, felt compelled to make contributions in excess of campaign spending limits to be viewed favorably for state or city contracts, Lee said. The contributions came from individuals and not from the engineering firm itself, as if it was trying to distance itself from any allegations of "quid pro quo," he said.

If Perkins denies the deferral, Matsuo faces a maximum five years imprisonment and a $16,000 fine for the money laundering count, and one year in jail and a $2,000 fine for making a political donation while using a false name.