State agencies investigate treatment program
By Jim Dooley
Advertiser Staff Writer
Three state agencies are investigating possible civil or criminal violations at Fresh Start Inc., a nonprofit organization in Waipahu that helps people with substance abuse and mental health problems.
One of the agencies, the Hawaii Paroling Authority, said yesterday it has stopped referring parolees to Fresh Start because of concerns about the program's operations.
The state attorney general's office confirmed this week that it had begun a criminal investigation into Fresh Start over allegations that program director Ron Barker may have extorted money from residents or relatives of those living at the facility.
Stirling Lau, an investigator with the attorney general's office, declined to elaborate further. "I'll just say we're investigating," he said.
One person familiar with the case, an attorney, said the mother of a resident at Fresh Start told him she paid $20,000 to keep her son in Fresh Start after he had been terminated from the program and faced return to prison. The attorney said he didn't want his name used because he was not directly involved in the case and had simply advised the person making the allegation to contact authorities.
Another man contacted by investigators said he was questioned late last year about the source of money used by Fresh Start to purchase an expensive automobile as well as other matters concerning "financial management practices" at Fresh Start. He asked that his name not be used because, except for the contact from the state investigator, he has no involvement.
Barker, president of Fresh Start, did not return repeated calls for comment from The Advertiser over two days.
Meanwhile, a third state agency, the Adult Probation Division of the state judiciary, is investigating the death of a probationer from the Big Island, William "Drew" Flanders II, at Fresh Start on Dec. 23. Flanders, 55, who had a long history of drug abuse, died of an apparent drug overdose in his room at the facility, which operates on Pupuole Place.
"The matter is being looked into," said Ron Hajime, administrator for the probation division. His office has no contractual relationship with Fresh Start, but he said those on probation and eager to stay out of jail have gone to the facility.
Fresh Start residents are a mixture of parolees and people on probation for criminal offenses who are required to enroll in such private programs as an alternative to incarceration or as a transition between prison and society. Others have no criminal records but enroll in the program for its educational, vocational and counseling services.
The administrator of the Hawai'i Paroling Authority said yesterday that his office has stopped referring parolees to the facility because he's concerned about "equitable and fair treatment" of those in the program.
Parole and Pardons Administrator Tommy Johnson said that the 25 parolees now living at Fresh Start will be allowed to stay at the 125-bed facility but that no new referrals will be made until questions with Barker's operation are resolved. Johnson said he met with Barker on Tuesday to discuss the problems.
"We have received complaints about unfair treatment of parolees," Johnson said, adding that he has referred other complaints about Fresh Start to appropriate state agencies for further investigation. He declined to elaborate.
Meanwhile, there are new questions about the propriety of Fresh Start's involvement in political activities.
The Advertiser reported Tuesday that some Fresh Start residents waved campaign signs for City Council candidate Ann Kobayashi. Two residents of the facility said Barker told them they would be sent back to the Halawa Correctional Facility if they did not participate, but Barker and some other residents said campaigning was done on a voluntary basis and nobody was threatened.
Hugh Jones, a state deputy attorney general who specializes in oversight of nonprofit agencies, said federal tax law "strictly prohibits nonprofit agencies like Fresh Start from involvement in political campaign activities."
Shawn George, spokeswoman for the Internal Revenue Service, said she can't comment on specific cases. But George agreed that federal tax law stipulates that organizations such as Fresh Start "cannot endorse any candidates, make donations to their campaigns, engage in fund raising, distribute statements, or become involved in any other activities that may be beneficial or detrimental to any candidate."
Violation of the law could result in fines or revocation of the organization's tax-exempt status.
Barker previously told The Advertiser that Fresh Start vehicles were used to transport as many as 60 sign-wavers three times a week to and from the campaign activity. When asked if use of the vehicles showed direct involvement by the organization in a political activity, Barker said everyone involved in the campaign, including the vehicle drivers, was a volunteer.
Kobayashi said she believed the sign-waving was voluntary. She is a former board member of Fresh Start and supporter of community-based treatment alternatives for some prison inmates.
Kobayashi said she donated $500 to Fresh Start Jan. 28, two days after her successful campaign in the special council 5th District election. Kobayashi said there was no connection between the sign-waving and the donation.
Fresh Start began operating in 1997. Its latest tax return, for the year 2000, said it had revenues of $895,000, including $385,000 in fees and contract payments from government agencies.
But Fresh Start had expenses in 2000 of $1,013,000 and had negative net assets at the close of the year, according to the return.
Barker, whose legal first name is Gervious, was paid a salary of $61,875, and his wife, Norma Jean, was paid $59,583, according to the tax return.
Reach Jim Dooley at jdooley@honoluluadvertiser.com or 535-2447.
