By Ken Kobayashi
Advertiser Courts Writer
|
|
|
|
Wayne Abe listens to Judge Perkins sentence him to up to 10 years in prison for fraud. Abe bilked at least 175 victims out of about half a million dollars by selling them fraudulent airline coupons. The prosecution described the operation as a "pyramid scheme."
deborah booker | The Honolulu Advertiser
| |
|
| |
| |
|
|
Victims of Wayne Abe's airline-ticket pyramid scheme listened, and also testified, yesterday as Circuit Judge Richard Perkins held a sentencing hearing for the 57-year-old Kaimuki man.
Deborah Booker | The Honolulu Advertiser
| |
|
|
|
Victims of Wayne Abe's airline-ticket pyramid scheme listened, and also testified, yesterday as Circuit Judge Richard Perkins held a sentencing hearing for the 57-year-old Kaimuki man.
Deborah Booker | The Honolulu Advertiser
| |
|
|
|
Victims of Wayne Abe's airline-ticket pyramid scheme listened, and also testified, yesterday as Circuit Judge Richard Perkins held a sentencing hearing for the 57-year-old Kaimuki man.
Deborah Booker | The Honolulu Advertiser
| |
|
|
|
Victims of Wayne Abe's airline-ticket pyramid scheme listened, and also testified, yesterday as Circuit Judge Richard Perkins held a sentencing hearing for the 57-year-old Kaimuki man.
Deborah Booker | The Honolulu Advertiser
| |
|
|
|
Victims of Wayne Abe's airline-ticket pyramid scheme listened, and also testified, yesterday as Circuit Judge Richard Perkins held a sentencing hearing for the 57-year-old Kaimuki man.
Deborah Booker | The Honolulu Advertiser
| |
|
|
|
Victims of Wayne Abe's airline-ticket pyramid scheme listened, and also testified, yesterday as Circuit Judge Richard Perkins held a sentencing hearing for the 57-year-old Kaimuki man.
Deborah Booker | The Honolulu Advertiser
| |
|
| |
A 57-year-old Kaimuki man was sentenced to a maximum 10 years in prison yesterday for selling bogus airline coupon tickets that defrauded dozens of Hawai'i residents out of an estimated $515,000.
Wayne T. Abe's lawyer asked for probation so his client could work to pay back the victims, but Circuit Judge Richard Perkins said Abe's criminal conduct went on too long and defrauded too many people out of too much money to warrant probation.
Tamela Young, 36, of Makakilo, who purchased about $61,000 in coupons for family, friends, co-workers and others, was among about a half dozen victims addressing the judge yesterday about the hardships caused by Abe's bogus sales.
The victims talked about canceled trips, friendships ruined when they collected money from friends for what turned out to be bogus coupons, and people having to pay additional money to purchase airline tickets.
But Young, who purchased the most coupons among the prosecution's list of victims, was not bitter.
"Wayne, I forgive you," she said. "I just wish you change your ways."
Abe nodded, then later told the judge he apologizes for the "terrible mistakes I have done" and said he wants to pay back the victims. He said he never made any money off the sales and blamed his conduct on "bad business judgment."
"I just got carried away," said Abe, who suffers from a congenital bone disease and walks with a cane.
Abe was found guilty earlier this year when he pleaded no contest and did not challenge theft and money-laundering charges.
Abe sold blocks of airline coupons from the mid 1990s until his arrest in April last year, according to prosecutors. He would typically sell a block of five coupons with the sixth one free for open-ended roundtrip airline tickets to the West Coast for $1,000 to $1,350, well below the market price, the prosecutors said.
Although the coupons were honored in the early stages, Abe's scheme collapsed and the victims discovered the coupons were worthless, the prosecution said.
City Deputy Prosecutor Christopher Van Marter, who asked for a 30-year sentence, said Abe conducted what amounted to a pyramid scheme. He said about 175 victims lost about $329,000, but other victims were later discovered, raising the amount to about $515,000.
He told the judge if Abe was granted probation, others contemplating a similar fraud might take that risk if the worst that could happen would be probation.
Van Marter also denounced Abe's description of his conduct as the result of bad business decisions. "It was lying with intent to steal," Van Marter said. "That's fraud."
Abe's lawyer, Arthur Indiola, said his client has various jobs lined up if he is released, but a 30-year prison term would undermine his client's goal of repaying the victims.
He portrayed his client as an upstanding member of the community, active in coaching and volunteer work with a clean record before he got involved in a "network marketing" enterprise, then made a "rash of bad decisions."
Abe didn't have a lavish lifestyle from the money, losing his house and his marriage as he sank deeper in debt, Indiola said.
Perkins said he will hold a hearing to determine how much in restitution Abe must pay. Perkins said he has no problem in finding that Abe owes money, but under the law, the judge must consider whether Abe has the ability to pay restitution.
Abe was given credit for the 15 months he served behind bars since his arrest. The Hawai'i Paroling Authority will later determine how much time he must serve before he can be released.
Indiola later said he still thinks Abe wants to repay the victims.
Young, a bank teller, isn't holding her breath. She and her husband refinanced their home and paid about $22,000 to people who purchased bogus coupons through them, even though she is pregnant with her sixth child.
"I don't think this man can go out and work for restitution," she said.
But, she said, she's not upset that they won't get back the money.
"I left it in God's hands," she said. "We need to move on."