Posted on: Thursday, October 7, 2004

Ex-city official loses court appeal

By Ken Kobayashi
Advertiser Courts Writer

The Hawai'i Supreme Court yesterday affirmed the theft and related convictions of former city housing official Michael Kahapea for bilking the city out of nearly $6 million that was supposed to be used for relocation expenses for the city's 'Ewa Villages revitalization project.

Circuit Judge Reynaldo Graulty, who sentenced Kahapea to a maximum 50-year prison term in 2000, told him the convictions stemmed from "the largest single theft of taxpayers' money by a public official in the state's history."

Kahapea, 61, was convicted of stealing the money between 1994 and 1997.

At trial, city prosecutors said Kahapea spent millions of dollars of the city's money on Las Vegas slot machines and Las Vegas-based water and gold mining ventures.

In his appeal, Kahapea contended that the judge should have barred the prosecution testimony about his gambling history. He also claimed he was not adequately represented by his defense lawyer and he did not knowingly give up his right to testify.

In a unanimous ruling, the high court rejected those points.

Kahapea, former head of the city property management and relocation branch, was found guilty of 43 counts of theft, forgery, money laundering and other charges in connection with moving businesses from the 'Ewa redevelopment project.

Prosecutors argued he was the mastermind of the scheme that included rigged bids, overbilling and kickbacks from bogus companies that existed only on paper, but were awarded moving contracts.

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