Posted on: Friday, September 27, 2002
Campaign link to woman irks Harris
By Johnny Brannon
Advertiser Staff Writer
Honolulu Mayor Jeremy Harris' lawyer angrily complained that Harris has been unfairly associated with a woman who was arrested last month for money laundering and prostitution offenses, and who was indicted on Tuesday for theft.
Lisa K. Otsuka also has been subpoenaed to testify before an investigative grand jury exploring whether any links exist between contributions to Harris' 2000 re-election campaign and the awarding of city contracts.
"I think it's safe to say that along with many others in the community, the mayor is outraged by attempts to link him to Ms. Otsuka and that the attempts obviously have been calculated and irresponsible," attorney William McCorriston said.
"McCarthy-like tactics have been employed to smear his reputation," charged McCorriston, who called on Gov. Ben Cayetano "to do something about it."
Otsuka, 32, was arrested on Kapahulu Avenue in Waikiki on Aug. 15 on suspicion of money laundering, promoting prostitution, and operating an illegal business, according to a police booking log. She was later released uncharged.
Prosecutors declined to explain the nature of the allegations or the time frame they supposedly occurred within, but said the investigation is continuing and that charges could still be filed.
McCorriston blamed the alleged smears on state Campaign Spending Commission director Robert Watada, who has questioned whether any money from the Harris campaign ended up in Otsuka's bank account.
"This is nothing but a hatchet job," grumbled McCorriston, who also blasted prosecutors for failing to muzzle Watada and the media for its coverage of the matter.
Watada called McCorriston's smear claims "absolutely ludicrous."
"It's my job to investigate violations of the campaign spending law, and that's what we are doing," he said. Cayetano could not be reached for comment.
Watada said he had no personal knowledge of payments to Otsuka, but questioned why the Harris campaign paid a consultant $31,000 with a cashier's check rather than a check drawn on the campaign's account.
"Legally, they can do it, but it raises a lot of suspicions because that's very much out of the ordinary," Watada said. "If they had a legitimate expenditure and they had a bill for services provided, why pay with a cashier's check?"
The company is a branch of Mattson and Co., owned by Harry Mattson and Norma Wong, according to state business registration records. The firm hosted a hotel hospitality room at the Democratic Party's state convention in June, and hired Otsuka to cater it. Neither Mattson nor Wong returned calls.
Harris campaign officials said the firm was paid for legitimate campaign tasks such as setting up phone banks, conducting polls, and coordinating advertising.
Campaign deputy treasurer Peter Char said Mattson had asked to be paid once with a cashier's check because he was leaving that night for the Mainland. Char said he agreed because he assumed Mattson was having cash flow problems.
"I'm a little embarrassed being somehow connected to this icky kind of stuff," Char said. "That's the only time I ever authorized a cashier's check, and it was for a friend I thought was in need."
McCorriston said the check had not been endorsed by Mattson to Otsuka but that he did not know whether Mattson had paid her for anything in another way. He said Mattson had been questioned by prosecutors and had passed a lie-detector test.
Mattson did not return repeated telephone calls over several days, but he suggested in a written statement released by McCorriston that a business deal with Otsuka had gone sour.
The statement said Mattson "is deeply disturbed by a situation where his investment of personal resources in a legitimate business with someone he believed to be a successful entrepreneur has turned out otherwise."
Otsuka failed to surrender after a warrant for her arrest was issued Tuesday following her indictment for theft. She is charged with stealing several thousand dollars from a dance group's fund-raising event.
The attorney who represents Otsuka regarding the Harris investigation said he does not know where she is or whether she will turn herself in.
"I haven't been able to find her," attorney Michael Green said. "For all I know, she's on the Mainland. I just don't know where she is."
Green said he had been aware of the Waikiki arrest, and that Otsuka had been questioned about campaign contributions while she was in police custody. He said he does not represent Otsuka on the theft charge or other matters.
She signed up for classes on Monday at a Honolulu adult care training school but complained of illness and left with uniforms and books worth about $200, school officials said. She never returned.
Otsuka was arrested Sept. 9 after she failed to appear before the Harris grand jury, but was released on $10,000 bail pending a court appearance scheduled for October, in which Otsuka is expected to seek immunity from prosecution in exchange for her testimony. Bail for the theft charge has been set at $50,000.
Harris said he did not know Otsuka but declined to comment further. He has denied any links between campaign contributions and the awarding of city contracts.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
