Posted on: Tuesday, October 8, 2002

Harris witness to testify soon

By Johnny Brannon
Advertiser Staff Writer

Lisa Otsuka leaves a courtroom to gather business cards from reporters before pleading not guilty to a theft charge. She is accused of stealing about $3,000 from a fund-raising event last year. Richard Ambo • The Honolulu Advertiser

Subpoenaed grand jury witness Lisa-Katharine Otsuka said yesterday that 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 probing 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 yesterday 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.

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

Otsuka was arrested in August on suspicion of money laundering, promoting prostitution and illegally operating a business. She has not been formally charged for those offenses, but was served with a subpoena for the Harris case after she was booked.

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

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

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

"I wish so badly that I could answer everyone's questions," she said, adding that her court problems prevented her from doing so immediately.

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. He did not return calls yesterday.

Otsuka would not elaborate on her involvement with Mattson, but said she had volunteered to help him 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.

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

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