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The Honolulu Advertiser

Posted at 11:40 a.m., Monday, October 7, 2002

Harris witness pleads innocent to theft

By Johnny Brannon
Advertiser Staff Writer

Subpoenaed grand jury witness Lisa Otsuka said today she does not know Mayor Jeremy Harris, but would not say whether she had worked on his 2000 re-election campaign.

Otsuka, 32, said she will testify this month before an investigative grand jury investigating Harris' campaign finances and the awarding of city contracts. She had failed to appear before the panel in September and was later arrested for contempt of court.

Otsuka pleaded innocent today to a second-degree theft charge in which she is accused of stealing about $3,000 from a Tahitian cultural group's fund-raising event last year. Otsuka said she looks forward to a trial, scheduled for the week of Dec. 9, and the opportunity to prove her innocence.

"I really appreciate everyone's interest and concern and the support of my friends and family," she said after her arraignment.

Otsuka said she had been very surprised to be arrested in August on suspicion of money laundering, promoting prostitution and operating an illegal business. She has never been formally charged for those offenses, but was served with a grand jury subpoena for the Harris case after she was booked.

"I've been totally shocked by everything," she said.

Otsuka would not say how long she had known campaign consultant Harry Mattson, but said they had shared a business relationship.

Mattson's firm, Campaign Services, was paid about $70,000 by the Harris campaign for consulting work, but investigators have questioned whether any of that money ended up in Otsuka's bank account improperly.

Mattson has suggested that a business deal involving himself and Otsuka went sour, but has not provided details. Otsuka would not elaborate on her involvement with Mattson, but said she had volunteered to assist Mattson host a hotel room at this year's Democratic Party state convention.

"I just picked up food and drinks and coolers for a hospitality suite," Otsuka said.

Harris has repeatedly said that he does not know Otsuka, and campaign officials said she had no official role with the campaign.

Otsuka remains free on bail pending her trial and grand jury appearance.

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