Posted on: Thursday, May 20, 2004

Investigators alert targets in airport fraud

Advertiser Staff

A federal investigation continues into state contracting fraud at Honolulu International Airport, and some people have been formally notified that they are targets of the probe, according to a document filed in state court.

The state began investigating a bid-rigging scheme at the airport in 2001. It turned the case over to federal authorities this year after securing guilty pleas from six contractors who admitted participating in the scheme.

In the state criminal cases and a $1.25 million civil fraud suit filed late last year, the attorney general's office alleged that airport officials awarded "small" airport construction and repair contracts — worth no more than $25,000 each — to contractors who kicked back cash and favors.

Deputy Attorney General Jack Rosenzweig, who is handling the civil fraud case, said in a court document filed May 7 that federal criminal prosecutions would "either be commenced or abandoned" within 90 days against the probe's targets.

He asked that no records developed during the state's investigation be turned over to defendants in the civil suit until that 90-day period has expired.

The state in the civil fraud suit alleges major participation by former airport official Dennis Hirokawa, former airport visitor information program director Richard Okada, and three contractors. None has been charged with a crime and all have denied the allegations in the suit.