Probe nets high-profile donor
By Johnny Brannon
Advertiser Staff Writer
Wesley Segawa, former chairman of the Housing and Community Development Corp. of Hawai'i, was arrested yesterday as part of a wide-ranging criminal investigation of illegal political donations.
The probe has become one of the most sweeping in state history, and more than 600 subpoenas have been issued to a variety of companies and individuals for bank records and other financial documents. Segawa's arrest is the highest-profile so far.
SEGAWA
Segawa also agreed in May to pay the state Campaign Spending Commission a $53,500 fine for making illegal donations to several politicians, according to a signed agreement made public yesterday.
He was booked at the Honolulu Police Department's main station on suspicion of money laundering, illegal ownership of a business, making campaign donations under a false name, and an illegal business practice known as monopolization. He was released pending further investigation.
The campaign commission found that Segawa funneled $26,275 to Mayor Jeremy Harris, $21,950 to former Gov. Ben Cayetano, $14,300 to former Lt. Gov. Mazie Hirono, $12,500 to former Maui Mayor James "Kimo" Apana, and $3,000 to Hawai'i County Councilman and former mayoral candidate Fred Holshuh.
Commission director Robert Watada said Segawa provided the money to employees, relatives and friends, and directed them to make campaign contributions. Segawa owns a Hilo engineering firm, Wesley R. Segawa and Associates Inc.
Segawa could not be reached for comment, and his attorney declined to discuss the arrest or the fine. Prosecutors also declined to discuss the arrest or the status of the overall criminal probe.
The investigation has lasted more than 18 months and focused largely on money that went to Harris, whose attorney has blasted the effort as a witch hunt. Harris has not been formally accused of wrongdoing.
Segawa's arrest was the latest in a series that have included several other engineering company figures, all of whom were released uncharged.
Sam Kyu Hyun, president of W.A. Hirai and Associates, was arrested and released on Tuesday on suspicion of the same offenses as Segawa.
Hyun's firm agreed in March to pay a $19,000 fine for making illegal donations to the campaigns of Harris, Cayetano, Hirono and Apana.
Others arrested earlier this month include Edward K. Noda, vice president of a company that bears his name, and Nancy Matsuno, treasurer for R.M. Towill Corp. Towill vice president Roy T. Tsutsui was arrested last month.
Noda agreed in March to pay the state Campaign Spending Commission a $53,000 fine for funneling money through other people to the campaigns of Harris, Cayetano and former Mayor Frank Fasi.
Segawa and eight other HCDCH board members resigned late last year after the U.S. Department of Housing and Urban Development accused the agency of mismanaging federal money.
HCDCH was also told to refund $771,000, the amount of a sole-source contract that HUD said was improperly awarded by former HCDCH executive director Sharyn Miyashiro to a company partly owned by her ex-husband, Dennis Mitsunaga.
Mitsunaga was a major campaign fund-raiser for Harris, Cayetano and others, and is Segawa's second cousin.
Watada said Mitsunaga's fund-raising involved many companies that have been fined or are under investigation, but that he has not been accused of wrongdoing.
Several people were charged earlier in the campaign probe. They include Michael Matsumoto, head of SSFM International Inc. engineering, who pleaded no contest last December to felony money laundering and a misdemeanor campaign finance violation. Three others associated with the company were also charged with misdemeanors.
Earlier this month, a member of Harris' Cabinet pleaded no contest to misdemeanor theft for instructing his secretary to file Harris campaign spending reports while on duty at City Hall.
Michael Amii, director of the city Department of Community Services, was ordered to pay $495 in fines and restitution, and was placed on a form of probation for one year. He remains on the job.
In May, an attorney for the Food Pantry grocery chain was indicted on two misdemeanor charges for allegedly orchestrating illegal campaign contributions to Harris. The lawyer, Edward Chun, pleaded not guilty.
Another company, GYA Architects Inc., has agreed to pay the campaign commission a $6,500 fine for making improper donations to Cayetano, Hirono, and Harris, Watada said.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
