Kahapea says state inflated figures
By Curtis Lum
Advertiser Staff Writer
A defiant Michael Kahapea yesterday challenged a city prosecutor's contention that Kahapea owes more than $860,000 in restitution for stealing money earmarked for city projects.
Advertiser library photo
The former city housing official told Circuit Judge Karl Sakamoto that the city's figures were inflated and he did not owe that much. Kahapea, 58, spoke at his sentencing hearing after pleading no contest to six counts of theft and money laundering.
The state wants Michael Kahapea's retirement pay forfeited.
Kahapea admitted his involvement in stealing $1.54 million from three different city projects over nine years. Under a plea agreement, Sakamoto sentenced him to 10 years in prison.
Prosecutors agreed not to go to trial on an additional 25 criminal counts brought against Kahapea. The plea agreement ends the criminal cases against Kahapea in state courts.
But Kahapea is contesting the state's claim that he should pay $866,275 in restitution, money that city Deputy Prosecutor Randal Lee said directly benefitted Kahapea. Lee also is seeking $3.7 million in restitution from Kahapea for his involvement in the 'Ewa Villages Revitalization Project.
Lee asked the judge to order Kahapea to pay 10 percent of his income from a prison job as part of the restitution. The state also wants Kahapea to forfeit his $497 a month in retirement benefits that he will collect when he turns 65.
Kahapea's attorney, Donald Wilkerson, said the state has not provided evidence that the amounts being sought went directly to Kahapea. Kahapea said much of the money he is accused of stealing was spent on the city projects.
"The figures that (Lee) is throwing out there, I don't even know what he's talking about," Kahapea said. "If I'm going to be held responsible for restitution, I should be held responsible for the money that they can show that I got."
Kahapea did not say how much he feels he should repay. Wilkerson said he didn't know what would be a fair amount for Kahapea to pay.
"They have no records, they merely have numbers and they want the judge to take their word for it," Wilkerson said. "I don't take their word for it and I would ask the judge not to take their word for it."
Kahapea yesterday did not apologize for his wrongdoing, but Wilkerson said his client is remorseful.
"He did participate in the theft of money from the city and county. He's acknowledging that," Wilkerson said. "He feels bad about what he did, but there's nothing he can do now."
Lee said Kahapea has never apologized for his crimes. He said Kahapea is just trying to avoid paying restitution.
"He stole from us. He deprived the taxpayers of services that we could have used during these hard economic times. So why should we now say that's OK?" Lee said.
Sakamoto said he would issue a ruling in two weeks.
Kahapea's 10-year term will run concurrent with the 50 years he is serving after being found guilty last year of bilking the city out of $5.8 million that was supposed to be used to move businesses out of the 'Ewa Villages project.
