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The Honolulu Advertiser

Posted on: Friday, December 13, 2002

Charges filed in Harris campaign probe

By Johnny Brannon
Advertiser Staff Writer

Prosecutors filed the first criminal charges in their lengthy investigation of illegal contributions to Mayor Jeremy Harris yesterday, accusing top officers of one of Hawai'i's largest engineering firms of using the names of others to evade political donation limits and funnel money to Harris.

SSFM International's president, Michael Matsumoto, was charged with felony money laundering and a misdemeanor count of making campaign contributions under a false name.

Also charged with the misdemeanor were four others: SSFM officers Norman Kawachika and Clayton Wong; June Takushi, the wife of a third officer; and company project engineer Warren Sato.

Matsumoto had tentatively struck a deal last month to accept responsibility for the illegal donations just hours before prosecutors were to present the case to a grand jury. He has agreed to testify for prosecutors in related cases if necessary.

SSFM attorney Steven Hisaka said he was surprised that charges had been filed against the others.

"The company, as well as the employees, have been cooperating in the investigation," he said. "I'm surprised, given the fact that there have been discussions ongoing."

Matsumoto's charges are the most serious, and carry a maximum penalty of 10 years in prison and a $25,000 fine. His attorney, Howard Luke, said Matsumoto would likely plead no contest to the charges to put the case to rest, but that he would seek to avoid a prison sentence.

"If he could have avoided having charges brought against any others, he would have," Luke said. "He's deeply concerned about the reputation of the corporation and its integrity."

SSFM and its employees and associates donated more than $85,000 to Harris since 1996 and have received lucrative nonbid engineering contracts for city projects. But Luke said there had not been any agreement that contracts would be awarded in exchange for political gifts.

"There never was a quid pro quo in this matter," Luke said. "It's not a matter of excess contributions in return for work."

He said he strongly disagreed with the money laundering charge, but declined to discuss the case in detail.

Harris' spokeswoman did not return calls. Hisaka said investigators had not subpoenaed or requested any documents from SSFM related to government contracts.

The company and its associates also donated heavily to former Gov. Ben Cayetano's 1998 re-election campaign and worked on state projects. Luke said his understanding was that the charges pertained only to donations made to Harris.

Prosecutors would not comment on the case. Sato is a former public construction planner for the city. His attorney also declined to comment. Takushi's attorney, Earle Partington, said his client had not been asked by prosecutors to testify against anyone else.

"Her involvement is so minimal, and I don't believe she knows anything they don't already know," he said.

The criminal investigation began in January, after the state Campaign Spending Commission found what it believed was evidence that Harris' campaign had falsified contribution reports to evade the legal contribution limit of $4,000 for a single donor. No charges have been filed against the mayor or campaign officials.

A grand jury that has been hearing testimony in the case for months is expected to reconvene next year.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.