Minutes for January 15, 2002
Campaign Spending Commission Meeting
Leiopapa A Kamehameha Building, Room 204
January 15, 2002
3:00 p.m.
Members Present:
A. Duane Black, Della Au Belatti, Clifford Muraoka, Mona Chock, Richard Choy
Staff Present:
Robert Watada, Tony Baldomero, Jon Itomura, Ellen Kojima
Gary Kam, Deputy Attorney General
Call to Order:
Meeting convened at 3:02 p.m. with Chairman Black presiding.
Consideration of Minutes:
Deferred until the next meeting.
New Business:
Conciliation Agreement #01-11 Gentry Homes
Mr. Tosh Hosoda of Gentry Homes through two related political action committees (PACs) made excess contributions to the campaigns of Harris, DeSoto, and Hannemann totaling $12,000. Both PACs are registered with different officers, but funds come from the same source, Gentry Homes.
Staff recommends an administrative fine of $5,500 for six separate occurrences of excess contributions and one for which the two PACs share the same treasurer. Gentry signed the agreement and staff recommends that the commission accept the conciliation agreement with Gentry.
Ms Chock moved to accept conciliation agreement with Respondent Gentry Homes, Mr. Muraoka seconded. Motion carried.
Conciliation Agreement #01-12 Geolabs, Inc.
Between January 1996 and June 2001 Geolabs, officers and family members made $244,150 in political contributions to several candidates. Excess contributions to the campaigns of Harris, Cayetano, Hirono, Apana, Holschuh and Morgado total $124,700. Investigation found that violations of section 11-204, HRS were reckless and may have been knowing and intentional. There were also several instances where contributions were reported in another persons name, in violation of section 11-202, HRS. Staff recommends and Geolabs has agreed to an administrative fine of $64,000.
Ms. Chock moved to accept the conciliation agreement with Geolabs, Mr. Choy seconded. Motion carried.
In response to Ms. Belatti's question on contributions being attributed to someone other than the contributor, Mr. Phil Li, representing Geolabs stated that in some cases it was by the person who wrote the check and in other instances it appears to have been done by someone outside the Geolabs organization. When asked if the same kind of discrepancies appeared on any other campaign reports, Mr. Li referred the questions to Mr. Watada, but noted that during his review of the records he did not recall any others showing the same kind of discrepancies.
Docket #02-01 In Re the Matter of Jeremy Harris, et al.
In the course of investigating Geolabs, between January 1996 and June 2001, it was found that several reported contributors to the Harris campaign stated that they did not make the reported contribution to his campaign. Further checking revealed evidence of a pattern, it is believed that there has been an intentional violation of the law and staff recommends that the matter be referred to the prosecutor for criminal investigation.
Mr. Muraoka moved that the matter be referred to the prosecutor for criminal investigation, Ms Chock seconded.
(Aye: Black, Belatti, Chock, Muraoka/Choy recused, as Roger Liu is also his CPA)
Mr. William McCorriston representing Mayor Jeremy Harris and Peter Char, stated that Mayor Harris is being singled out and that the complaint does not present any evidence of wrong doing by the parties. Also referred to section 2-14.1-26, HAR in that matters being referred should be based on specific facts, which the complaint fails to cite.
Mr. Watada responded that the names of individuals used by Harris are innocent and in some cases children.
Mr. Chris Parsons representing Roger Liu and Lex Brodie, reiterated what Mr. McCorristion stated and that Mr. Liu and Mr. Brodie have been denied there fundamental right to know what they are being accused of and to answer those charges.
Mr. Watada responded that the individuals named in the complaint are listed as officers and are held accountable.
In a brief statement, Mr. Lex Brodie stated that Mayor Harris is a man of integrity and that Mr. Watada is the one that should be investigated.
On another matter, Mr. Lex Smith requested an opportunity to address the commission on his request that the commission reconsider its statutory interpretation concerning the application of the contribution limits as provided in Advisory Opinion 97-04. He expressed concern that after receiving a letter saying that the matter would be on this agenda and found that it was not. Chairman Black informed him that it would be on the agenda for the next meeting.
No further business to discuss, Chairman Black adjourned the meeting.
Meeting adjourned at 3:45 p.m.
