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The Honolulu Advertiser

Posted on: Friday, December 27, 2002

Harris' supporter pleads not guilty to charges

By Johnny Brannon
Advertiser Staff Writer

Michael Matsumoto, left, with attorney Howard Luke, is accused of funneling money to Mayor Jeremy Harris under false names to circumvent contribution limits.

Richard Ambo • The Honolulu Advertiser

The head of one of Honolulu's largest engineering firms pleaded not guilty yesterday to felony and misdemeanor charges stemming from alleged illegal donations to Mayor Jeremy Harris' 2000 re-election campaign.

Michael Matsumoto, president of SSFM International Inc., is accused of funneling money to Harris under false names to circumvent state campaign contribution limits.

Three other top SSFM employees and the wife of a fourth are also charged with misdemeanors for alleged false-name contributions. At least two of them are scheduled to be arraigned today.

Matsumoto's attorney, Howard Luke, said he is still negotiating a plea bargain with prosecutors but strongly disagreed with the felony money laundering charge.

"The not-guilty plea says it all," Luke said after Matsumoto's arraignment at Circuit Court.

Matsumoto, 57, faces up to 10 years in prison and a $25,000 fine if convicted of the felony. He is also charged with a misdemeanor for alleged false-name donations, with a maximum sentence of 1 year in jail and a $2,000 fine. A trial is set for the week of Feb. 24.

Luke has indicated that he is seeking a deal that would avoid prison time for Matsumoto, who would agree to testify in related court proceedings if necessary.

SSFM is among the state's five largest engineering companies, and is a major city and state contractor. The company, its employees and family members donated more than $85,000 to Harris since 1996, records show.

Harris did not respond to a request for comment.

Matsumoto was the first person to be criminally charged in a lengthy ongoing investigation of the Harris campaign and the awarding of city contracts by his administration.

Deputy City Prosecutor Randal Lee said this week that officials from other companies would likely soon face charges similar to Matsumoto's. He would not say whether Harris or officials from his campaign could be charged.

Defense attorneys repeatedly have said that neither Harris nor the campaign engaged in illegal activity, and that no contracts were awarded in exchange for political donations.

An SSFM attorney said prosecutors had not asked for or subpoenaed contracting documents from the company, an indication that investigators are not pursuing a contracts-for-donations case regarding the firm.

The probe 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.

The commission has fined several major engineering companies for making excess donations to Harris and other politicians, and its investigation is continuing.

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