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The Honolulu Advertiser

Posted at 11:46 a.m., Friday, October 3, 2003

Illegal donations bring record fine

By Johnny Brannon
Advertiser Staff Writer

An engineering company executive who pleaded no contest this year to a felony money laundering charge has agreed to pay the state Campaign Spending Commission a record fine for making illegal donations to six Hawai'i politicians.

SSFM International Inc. president Michael P. Matsumoto will pay $303,000 for funneling $425,000 to Mayor Jeremy Harris, former Gov. Ben Cayetano, former Maui Mayor James "Kimo" Apana, former City Councilman Arnold Morgado, former Mayor Frank Fasi, and former Lt. Gov. Mazie Hirono.

The money was donated under the names of employees, friends and relatives to circumvent state campaign contribution limits, according to commission director Robert Watada. Harris’ campaign received the most money, about $182,000, Watada said.

Gary T. Okamoto, president of Wilson Okamoto and Associates Inc., agreed to pay a $44,500 fine for making illegal donations to Harris, Cayetano, Morgado, Apana and Hirono.

And attorney Edward Y.C. Chun, who pleaded guilty to a misdemeanor campaign violation last month, agreed to pay $3,500 for helping funnel illegal donations to Harris.

Watada said SSFM had initially resisted his agency’s probe but later cooperated, and that other firms are under investigation and should learn from Matsumoto’s experience.

"The sooner you get it over with the better," Watada said. "I’m sure Mike Matsumoto feels good to get this behind him."

Matsumoto’s attorney, Howard Luke, said Matsumoto wants to put the matter behind him and focus on his company’s future.

"Mike is taking full responsibility for the alleged violations of the campaign spending law," Luke said. "Certainly he’s been punished enough, excessively so from my perspective."

In the criminal case, Matsumoto was sentenced in July to 300 hours of community service and ordered to pay $15,000 to the Crime Victims Compensation Fund. He was also granted a chance to clear his record if he commits no offenses for five years.

Attorney Dale Lee, who represents the Okamoto firm and Chun, said agreements to settle the campaign spending commission investigations with fines were "the product of some very good faith work and discussions we’ve had with Mr. Watada."

"I think the process has been pretty fair and both clients have accepted the reconciliation agreements," Lee said.

Chun, a senior partner in the Honolulu law firm of Chun Kerr Dodd Beaman and Wong, is scheduled to be sentenced on Nov. 24 in the criminal case and faces a maximum penalty of one year in prison and a $2,000 fine.

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