Harris contributor to be arraigned today

By Johnny Brannon
Advertiser Staff Writer

The first person to face a felony charge in the lengthy investigation of illegal campaign contributions to Mayor Jeremy Harris will be arraigned in Circuit Court today for money laundering.

Michael Matsumoto, 57, faces a maximum penalty of 10 years in prison and a $25,000 fine if convicted, but hopes to avoid incarceration by striking a deal with prosecutors.

Matsumoto, president of SSFM International engineering company, allegedly set up a slush fund through which money was illegally funneled to Harris' 2000 re-election campaign under false names to circumvent state limits on political donations.

Matsumoto is also charged with a misdemeanor for the false name contributions. He will plead not guilty today but is expected to plead no contest at a later hearing and agree to testify in other court proceedings if necessary.

His attorney, Howard Luke, said he was still discussing details of the deal with prosecutors.

"No one's signed on the dotted line yet," he said. "We're moving toward an agreement that is mutually acceptable."

Three other top SSFM employees and the wife of a fourth are also charged with misdemeanors for false name contributions.

Deputy City Prosecutor Randal Lee said the investigation is continuing and that officials from other companies will likely face similar charges in the near future.

He would not say whether charges are likely for Harris or any officials from his campaign. Defense attorneys repeatedly have said that neither Harris nor the campaign engaged in illegal activity.

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.

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