Posted on: Sunday, March 24, 2002

Women betray backers' trust

By Curtis Lum
Advertiser Staff Writer

Four years ago, two Waimanalo women fought on behalf of residents in their low-income rental housing project for the right to purchase their homes. In doing so, Sandra Clarke and Faith Tanner won the respect of many in the tight-knit community for their unwavering determination.

But their accomplishments are all but forgotten now that Clarke and Tanner have been convicted of embezzling government money related to their crusade.

A federal jury this month found Clarke guilty of three felonies for her part in the embezzlement of nearly $50,000 in grants from the U.S. Department of Housing and Urban Development. She was convicted of one count of conspiracy and two counts of embezzlement following a three-day trial.

Clarke faces a maximum five years in prison for the conspiracy conviction and 10 years for each of the embezzlement convictions when she is sentenced Aug. 19 by U.S. District Judge David Ezra. Pamela Tamashiro, Clarke's attorney, said she has not decided if she will appeal the verdict.

Tanner pleaded guilty earlier this year to one count of embezzlement and testified for the prosecution at Clarke's trial. Tanner faces up to 10 years in prison when she is sentenced by Ezra on Aug. 5.

Clarke was vice president and community representative for the Waimanalo Resident Housing Association, which represented 50 families in the state's Waimanalo Homes project. The state planned to knock down the homes in 1998 and replace them with new ones.

The association, led by Clarke and Tanner, argued that the state should allow the tenants, many of whom had lived there for decades, to buy the new homes. But the state had never converted public housing units for sale and there were no guidelines in place.

After months of often heated meetings, the state and federal governments agreed to make the units available for purchase. Clarke's hard work was praised by the community and a representative of Housing and Urban Development.

As part of the program, HUD gave the association nearly $100,000 in grants to teach residents the skills needed to manage their own project and purchase their homes. The money was placed in a checking account controlled by Clarke and Tanner.

Things began to fall apart for the two women in 1998 when 24 housing residents asked for an investigation, said Assistant U.S. Attorney Lawrence Tong. An investigation revealed that nearly half of the money was spent by the two women, he said.

Tong said at trial that Clarke claimed about $25,000 of the grants as wages for her work on behalf of the association. She also paid for community entertainment and expenses unrelated to the association, Tong said.

Tanner admitted using $24,000 of grant money for personal expenses, including making rent and car payments, and paying for burial expenses for her brother.

Tamashiro said Clarke received approval by the homeowners' board to be a paid employee of the association, but her client was not aware that paying her with grant money was against HUD rules.

Clarke also co-signed checks payable to Tanner with the understanding that the money would be repaid by Tanner to the association, Tamashiro said. But Tanner never repaid the money.

"She took advantage of the friendship," Tamashiro said of Tanner.

Tamashiro said she was disappointed with the verdicts and said she hopes her client, who remains free until sentencing, will not spend time in prison.

"I really don't think that jail is something that is required in this case. She's going to lose her opportunity to live in public housing, she's going to lose her opportunity to purchase her home," Tamashiro said. "She did so much good for the community, and she ends up being convicted. It seems so unfair."

Deputy federal public defender William Domingo said Tanner never denied her involvement in the scheme. Tanner, who lives with her son on Hawaiian Home Lands in Waimanalo, is doing counseling work, Domingo said.

"She has really used this situation to show that she, too, has clay feet," Domingo said. "When she does do the counseling the people know where she's coming from and where's she's been."

He said he also hopes his client won't be sentenced to time in prison.