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The Honolulu Advertiser
Posted on: Friday, August 8, 2003

Largest penalty among 4 new campaign fines

By Johnny Brannon
Advertiser Staff Writer

The state Campaign Spending Commission yesterday levied fines totalling $139,000 against four companies accused of making illegal campaign contributions, the latest in a string of dozens of such cases.

Details of fines levied

The state Campaign Spending Commission levied these fines yesterday:

• Edward K. Noda and Associates — $74,000

• Randolph Murayama, engineer — $48,000

• Grant Thornton accounting firm — $16,000

• Tanaka Engineers Inc. — $1,000


Panel seeks volunteers

The state Judicial Council is seeking volunteers to fill three vacancies on the Campaign Spending Commission and is accepting applications until August 25.

Information and applications are available at the Judiciary's public affairs office, Room 206-C, Ali'iolani Hale, 417 South King St., or can be requested by calling 539-4702.

The new penalties include a $74,000 fine — the commission's largest ever — against the Edward K. Noda and Associates engineering firm for allegedly funneling more than $120,000 in improper contributions to several politicians.

Investigators found that the Honolulu company illegally gave nearly $49,000 to Mayor Jeremy Harris through employees and family members, a common pattern in many of the recent cases.

The firm also funneled $41,000 to former Gov. Ben Cayetano and $25,000 to former Lt. Gov. Mazie Hirono, according to investigators.

The company also was cited for making much smaller improper contributions to two others through associates: $7,000 to Gov. Linda Lingle and $1,500 to former Mayor Frank Fasi.

None of the politicians or their campaign officials have been accused of any wrongdoing.

Noda, the firm's vice president, agreed to pay the fine to settle the case but may also face criminal charges. He was arrested in June on suspicion of second-degree theft and money laundering and released pending further investigation.

Company officials declined to comment on the investigations.

Campaign commission director Robert Watada said the fine against Noda was calculated at double the usual rate because the firm did not cooperate with investigators.

The resistance forced them to subpoena bank records and conduct extensive interviews to gather evidence, he said.

"A lot of people think our fines are high, but the cost of getting the information is also high," Watada said. "I hope they understand that the more work we have to do, the more time we put into it, that's going to be reflected in the fines."

Before the $74,000 Noda fine, the largest penalty by the commission was a $64,000 fine issued last year to the Geolabs engineering firm.

Another engineer fined yesterday, Randolph Murayama, agreed to pay $48,000 for making illegal contributions to Harris, Cayetano and Hirono.

The Grant Thornton accounting firm will pay a $16,000 fine for improper donations to Cayetano and Hirono.

And Tanaka Engineers Inc., of Maui, will pay $1,000 for making contributions to Cayetano that exceeded the $6,000 limit.

Three other people, including an attorney, are awaiting trial for allegedly making or directing illegal donations to Harris.

At least 16 more have been arrested and remain under investigation, and more than 600 subpoenas have been issued to a wide variety of companies and individuals for bank records and other documents.

Harris' attorney has repeatedly said the mayor never solicited or knowingly accepted illegal campaign contributions and that the 18-month criminal probe has become a politically-motivated witch hunt. But prosecutors say they are simply following evidence wherever it leads.

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