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The Honolulu Advertiser

Posted on: Friday, May 3, 2002

Man pleads guilty in money laundering

By David Waite
Advertiser Courts Writer

The former head of security for the Matson Navigation container yard on O'ahu pleaded guilty in federal court yesterday to conspiracy to commit money laundering in connection with a large-scale Chinatown gambling operation that was raided in May 2000.

Gabriel Aio, 56, will face a maximum prison term of 20 years when he is sentenced Oct. 7 by U.S. District Judge David Ezra.

A spokesman for Matson Navigation said Aio was placed on administrative leave two weeks ago and resigned from company on Tuesday.

Aio told Magistrate Judge Barry Kurren yesterday that he paid cash bribes, totaling more than $82,000, to an undercover police officer in hopes of protecting gambling operations at two Chinatown locations.

Aio was one of 19 people indicted in connection with the operation of card games and video gambling machines at locations on Maunakea Street and North Hotel Street. Others have also pleaded guilty and two are awaiting trial.

Assistant U.S. Attorney Florence Nakakuni told Kurren that if the case against Aio had gone to trial, undercover police officer Earl Kaonui would testify about taped conversations he had with Aio and other principals involved in the gambling operation.

The FBI and Honolulu Police Department would provide videotapes of a number of people associated with the gambling operation dropping payments into Kaonui's car, Nakakuni said. In addition, Aio's co-defendants Steve Crouch, Huy Loi and Kim Le Richardson, who earlier pleaded guilty to federal charges in connection with the case, would testify against Aio at trial, if necessary, Nakakuni said.

The gambling business was owned by Hung Chi Ho of Vietnam, Nakakuni said.

She said investigators wiretapped telephone conversations between Ho in Vietnam and his associates in Hawai'i to establish that money was being paid to Aio to protect the operation.

When asked by Kurren to describe his role in the operation, Aio said he was asked by two of the main operators of the gambling business to make the payoffs to Kaonui and arranged to do so.

Kurren allowed Aio to remain free on bail pending sentencing.

Aio was sentenced to 20 years in prison in 1965 following an armed robbery conviction but was paroled after serving five years. He was indicted on a felony burglary charge in 1974 and later pleaded guilty to a reduced charge of criminal property damage.