Prosecutor wants Kahapea to pay $1.7 million back to city

By David Waite
Advertiser Staff Writer

A city deputy prosecutor said former city housing official Michael Kahapea should be ordered to repay the city approximately $1.7 million, even though he may never get out of prison or be in a position to pay much — if any — of that amount.

City Deputy Prosecutor Randal Lee told Circuit Judge Reynaldo Graulty yesterday that of the $5.6 million in city money squandered on the 'Ewa Villages revitalization project, about $3.4 million benefited Kahapea or his associates directly.

Kahapea was convicted in October of theft, money laundering and other charges after a Circuit Court jury found him guilty of funneling the city money to businesses "owned" by friends, many of which existed only on paper. The firms were paid by the city to move businesses away from the city's 'Ewa Villages revitalization project, but the vast majority of relocation work was never done.

Kahapea gave contracts to move the 'Ewa businesses to friends and relatives, who kicked back large amounts of money to Kahapea, according to testimony at his trial.

Kahapea, 58, was sentenced to 50 years in prison, although the Hawai'i Paroling Authority has yet to set the minimum term he must serve.

Graulty continued yesterday's restitution hearing until July 19 so that Lee can more fully document how he arrived at the dollar figure he claims went directly to Kahapea or to pay off debts Kahapea owed to others.

The prosecution maintained at Kahapea's trial that much of the money he pocketed was gambled away in Las Vegas slot machines from about 1992 to 1997.