Ex-state official pleads no contest

By Ken Kobayashi
Advertiser Courts Writer

The former chairman of the state's public housing agency pleaded no contest yesterday to a felony money laundering charge and a misdemeanor charge of contributing money to Mayor Jeremy Harris' campaign under false names.

Segawa

Circuit Judge Richard Perkins scheduled a March 16 hearing on the request. If denied, Segawa would be sentenced and would face up to five years in prison on the money laundering charge and a year in jail on the misdemeanor.

City Deputy Prosecutor Randal Lee said he will oppose the request, but will not seek any jail time. Lee said denial of the request would be more significant because it would mean Segawa, who owns a Hilo engineering firm, would have a criminal record that could lead to losing his license to perform jobs.

Lee said Segawa contributed more than $60,000 to the Harris campaign from 1998 to 2000, donating money under names of friends and relatives. The campaign limit was $4,000.

Segawa and his lawyer, Darwin Ching, declined to comment.

A no contest plea means the defendant is not contesting the charge and does not admit guilt. But based on such a plea, the judge usually finds the defendant guilty. Segawa is hoping the judge does not accept the plea and gives him the chance to have the charges dropped.

Segawa is yet another among dozens of engineers, architects and others who have been prosecuted in the past three years by the city Prosecutor's Office on charges of making illegal campaign donations.

Most were fined and given the chance to have their cases dropped, although one circuit judge, Steven Alm, handed down two 10-day jail terms last month to an architect and a contractor.

The Prosecutor's Office investigation is continuing. Lee has presented testimony in confidential proceedings before an investigative O'ahu grand jury panel, but he declined to say what the prosecution is now reviewing.

Segawa's company, Wesley R. Segawa and Associates, was fined $53,500 last year by the state Campaign Spending Commission for illegal contributions.

Investigators found that the company illegally gave more than $26,275 to Harris, $21,950 to then-Gov. Ben Cayetano, $14,300 to then-Lt. Gov. Mazie Hirono, $12,500 to then-Maui Mayor James "Kimo" Apana and $3,000 to Hawai'i County Councilman and former mayoral candidate Fred Holshuh.

Lee said his office's record shows more than $60,000 in illegal donations to Harris. He said the prosecution was based on the Harris donations because that was what was given to his office.

Harris, whose term ends this weekend, has not been charged with any crime and his lawyers have repeatedly denied that he did anything wrong.

Segawa was chairman of the public housing agency until last year, when he and other board members resigned under pressure from federal housing officials over allegations of mismanagement.

Lee said Segawa's campaign donation criminal case is unrelated to his role as the agency's chairman.

Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com or 525-8030.