Judge blasts liquor agency's open 'culture of corruption'
By Ken Kobayashi
Advertiser Courts Writer
A federal judge yesterday strongly denounced what he called the "culture of corruption" that led to extortion cases against eight former Honolulu Liquor Commission inspectors and said Honolulu residents should be "absolutely outraged" by the conduct.
"It is clearly the most open and notorious cases of public corruption I have ever seen," U.S. District Judge David Ezra said.
The remarks came during sentencing for the fourth of eight former inspectors charged with accepting bribes from owners and other employees of 45 hostess and strip bars during October 2000 to December 2001. The eight either pleaded guilty or were found guilty of at least some charges.
The case has been described by authorities as the state's largest corruption case involving a government agency.
Although the practice was widely known in the nighttime world of bars, "no one seemed to care," Ezra said.
Ezra focused his remarks on the pending criminal cases and did not mention an ongoing investigation by the FBI that included federal authorities seizing documents from the commission's Kapi'olani Boulevard offices on Jan. 18.
FBI Special Agent Arnold Laanui yesterday said the investigation is ongoing and could not comment. Liquor Commission administrator Wallace Weatherwax could not be reached for comment, but earlier said the FBI questioned all 16 current liquor inspectors and focused their inquiry on four clubs.
Ezra yesterday sentenced Samuel K.Y. Ho to 22 months in prison following his guilty pleas to conspiracy and extortion charges. The term was in line with prison sentences of 22 months to 24 months handed down for three others. Four more will be sentenced later.
Assistant U.S. Attorney Michael Seabright said Ho was one of the more "aggressive" of the eight, but was given credit for his cooperation with authorities. Seabright and Ho's lawyer, David Gierlach, agreed to recommend the 22-month sentence.
Ho apologized in court for his wrongdoing. He said the past three years have been "long and agonizing" for him, his family and friends. Gierlach said Ho was "extremely remorseful."
Ezra said the recommended sentence was lower than what he would have imposed, but he would defer to the prosecution.
He said the former inspectors had turned the office into a brazen "racketeering enterprise" and acted as if they were entitled to the money and other favors, including sexual ones in some instances, for not enforcing liquor laws.
He said he was struck by the "lack of indignation" by state and city officials over the racketeering activities by the former law enforcement officers.
"Where are the people who were supposed to be watching?" he asked.
Ho was ordered to start serving his sentence May 23.
Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com or 525-8030.
