Posted on: Thursday, February 10, 2005

Engineering firm facing $228,750 fine

Advertiser Staff

The executive director of the state Campaign Spending Commission is recommending that an engineering firm and its officers pay a $228,750 fine, the second highest fine in the commission's probe into illegal campaign donations.

Bob Watada, executive director, yesterday recommended that the commission approve the payment as part of a settlement with Paren Inc., also known as Park Engineering, and its officers. In the settlement, the firm admitted making donations under false names and in excess of campaign spending limits.

Watada said the commission raised some questions about the language of the settlement, but the amount of payment is not a major issue. Watada said the matter will before the commission at its next meeting March 9.

The settlement follows the criminal case against Larry K. Matsuo, 78, a former chief executive officer of the company, who pleaded no contest to making illegal donations to former Mayor Jeremy Harris' campaign.

Matsuo was fined $2,500 last month, but Circuit Judge Richard Perkins gave him a chance to have the charges dropped if he abides by conditions similar to probation.

The settlement is with the company and its president Melvin Suzuki, secretary/treasurer Joy Sakamoto and vice presidents George Sumida and Keith Uemura.

According to the settlement, illegal donations were made to the campaigns of Arnold Morgado, Ben Cayetano, Frank Fasi, Jeremy Harris, Kimo Apana, Mazie Hirono and Mufi Hannemann.

Steven Hisaka, lawyer for the company and the officers, said it was premature for him to comment before the commission approves the settlement. But he said the settlement has been in the works for a while. "We're looking to get it behind us," he said.

According to the settlement, Watada started investigating Paren Inc. in September 2001.

The $228,750 would be second only to the $303,000 penalty against SSFM International Inc. in October 2003 for illegal political donations.