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The Honolulu Advertiser

Updated at 12:05 p.m., Wednesday, November 20, 2002

Judge scolds Rodrigues for 'fracas' after verdict

By Mike Gordon,
David Waite
and Walter Wright
Advertiser Staff Writers

A federal judge today admonished United Public Workers leader Gary Rodrigues for "the fracas" that followed his guilty verdict on fraud charges.

Rodrigues, one of Hawai'i's most powerful and influential labor leaders, was found guilty yesterday in federal court of 101 criminal charges that described how he enriched himself by taking kickbacks and steering phony union consulting contracts to his daughter Robin Rodrigues Sabatini.

King said he was disturbed by the reports of the conduct by Rodrigues and his other daughter, Shelly Bonachita, a Kaua'i police officer, in and outside the courthouse, where they were involved in a brief scuffle with reporters.

"Can't you control your clients?" Senior U.S. District Court Judge Sam King asked defense attorney Doron Weinberg at a hearing today.

The jury of seven women and five men deliberated a little less than 12 hours beginning Monday afternoon before finding Rodrigues and Sabatini guilty of all charges.

After the verdict was read and King had left the courtroom, Rodrigues bent over a child in his entourage and pointed a finger at the prosecutors. "Get a good look at their faces, remember their faces," he told the youth.

Bonachita turned toward prosecutors and shouted, "Are you happy now? This is all lies. Can you sleep tonight?"

Later, as Rodrigues and his family left the courthouse, he yanked a microphone out of the hands of a television reporter and threw it on the ground while Bonachita shouted, "Get out of here!"

King said behavior like that during a court session would have brought an arrest.

Weinberg told King that the TV reporter dropped her microphone and he said he took issue with what was described as the supposedly threatening statement Rodrigues made toward prosecutors when he talked to the child.

"Your honor, the event did occur," he said. "The incidents did not occur as reported and were probably exaggerated."

"It seems to me it would be a lot simpler if you would instruct your client to behave," King replied.

But King's warning did not prevent additional displays of anger outside the courthouse today. As Rodrigues and Sabatini left, a member of his group jostled a news cameraman and another person tried to shove his way through a line of TV news cameras.

Rodrigues, 61, and Sabatini, 38, were allowed to remain free, but had to return to court today to listen to arguments about how much, if anything, they must forfeit to the federal government because of their crimes. Their sentencing has not been scheduled, and it is not known how much prison time prosecutors will be seeking.

King today decided, in his own words, "to punt" the forfeiture question back to U.S. District Judge David Ezra, who presided over the trial but had to leave for a hearing in Phoenix before the verdict.

Ezra will convene the jury next Wednesday to consider the forfeiture issue.

For Rodrigues, the guilty verdicts mean certain prison time and removal from his $200,000-a-year job as state director of the 12,000-member UPW, an affiliate of the American Federation of State, County and Municipal Employees. Rodrigues has led the union for 21 years.

The verdict clearly angered Rodrigues. He declined comment today.

"No thank you," he said as he waited for the courtroom to open this morning. "Not at this time."

The verdicts stunned Sabatini, who burst into tears after it was read. "But I didn't do anything wrong," she cried out.

Weinberg called the trial "an injustice, an unmitigated injustice" and said he would file an appeal.

The verdicts came after a three-year investigation by federal labor, IRS and FBI agents and the Ho-nolulu police that resulted in the indictments of Rodrigues and his daughter in March 2001.

Rodrigues was convicted of engineering a scheme from 1996 to 2000 in which he accepted kickbacks from insurers who did business with the union. He also set up a consulting arrangement for his daughter, who was supposedly hired to review the benefits programs of the union but actually did little or no work. Rodrigues set up a similar arrangement for the stepfather of an ex-girlfriend. Rodrigues owed the man $10,000, but instead of paying him back, Rodrigues had the UPW pay him as a benefits consultant.

One insurance agent testified that he gave Rodrigues an average of $20,000 in kickbacks from insurance premiums from 1993 to 1998. Sabatini was paid more than $100,000 for what was described at the trial as little or no actual work.

Weinberg and Richard Hoke, Sabatini's lawyer, argued that Rodrigues did not need his union's approval to include the consulting fees in health insurance contracts and that Sabatini provided a valuable service for the money she was paid.

The defense team called no witnesses during the trial, contending instead that the government had failed to prove its case.

Sabatini was found guilty of mail fraud resulting from her father's embezzlement of union money but did not aid him in the embezzlement scheme.