honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser

Posted at 11:43 a.m., Thursday, December 11, 2003

Contractor admits role in airport scam

By Jim Dooley
Advertiser Staff Writer

A state investigation of a cash-for-contracts kickback scheme at Honolulu International Airport yielded its first felony conviction yesterday when contractor Arthur K. Inada pleaded guilty to theft, agreed to repay the state at least $300,000 and agreed to testify against others involved in the scheme.

Attorney General Mark Bennett said Inada was part of a "small circle of contractors" who worked with "certain highly placed employees at the airport" for at least five years in a scheme involving bid-rigging, overbilling and cash kickbacks for airport repair and maintenance contracts worth no more than $25,000 apiece.

Inada pleaded guilty to one count of first-degree theft and agreed to provide testimony in future proceedings, Bennett said.

Sentencing is set for next May. Inada faces a maximum penalty of 10 years in prison and a fine of up to $25,000.

Bennett said "Inada estimated that over $100,000 was paid in kickbacks over the five-year period covered by his plea."

Bennett did not name the "highly placed employees" involved in the scandal, but investigators for the attorney general’s office last year arrested Richard Okada, head of the airport visitor information program, Dennis Hirokawa, airport maintenance superintendent, and maintenance supervisor Antonio Bio as part of the investigation. None has been charged.

Reach Jim Dooley at jdooley@honoluluadvertiser.com or 535-2447