Posted on: Friday, May 13, 2005
Jail time for ex-liquor officials
By Ken Kobayashi
Advertiser Courts Writer
Three former Honolulu Liquor Commission inspectors were sentenced to prison yesterday in a bribery case as a federal judge again denounced the corruption and called for changes in the liquor enforcement agency.
Chief U.S. District Judge David Ezra, who imposed the sentences, said he is disgusted by the racketeering enterprise among the former inspectors who solicited bribes from hostess bars and strip clubs.
He called for fundamental changes at the commission and suggested that the City Council and state Legislature look into it.
The sentences for the three men yesterday were longer than the prison terms of 22 to 24 months given to four other former inspectors, each of whom pleaded guilty and cooperated with federal authorities.
Eight former inspectors were indicted by a federal grand jury in 2002 on charges of racketeering, bribery, extortion and related counts. Authorities described the case as the state's largest corruption case involving a government agency.
The eight were accused of accepting cash bribes in 2000 and 2001 from owners and workers of about 45 hostess bars and strip clubs. In exchange, they overlooked liquor law violations ranging from selling liquor to minors to improper behavior by exotic dancers, according to the prosecution.
Although defense lawyers question the figure, federal prosecutors say the former inspectors may have collected as much as $400,000.
Kenneth L. Wright, 49, the eighth former inspector, is scheduled to be sentenced in June.
Yesterday, Eduardo C. Mina, 74, was sentenced to 65 months in prison; he has already served about 2 1/2 years in custody. Ezra said Mina, who received the harshest sentence, perjured himself during a pretrial hearing. Mina's lawyer David Klein argued that Mina has been punished enough, but Assistant U. S. Attorney Michael Purpura said Mina "doesn't get it" and does not acknowledge the damage he caused.
Arthur M. Andres, 62, received a 41-month prison term.
Andres, who pleaded guilty, but did not agree to cooperate, was a police officer before working with the Honolulu Liquor Commission. He told the judge he was sorry and accepts responsibility.
His lawyer Reginald Minn suggested that the inspectors became "sucked in" by the corrupt world of hostess bars and the commission's "front office" should bear some responsibility for sending them into that situation.
Purpura called the defense argument a "modified Nuremberg defense." He told the judge, "He took the bribes when he could have said no."
Harvey T. Hiranaka, 58, received a five-year term.
Hiranaka, a supervisor of the night-shift inspectors who accepted bribes, should not be considered an organizer of the enterprise because he was not responsible for hiring or firing the inspectors, said his lawyer Pamela Byrne, federal assistant public defender.
She said on their own, some former inspectors would check in for work, but then go home and sleep, while some dated bar owners.
But Purpura said Hiranaka knew which bars would pay bribes and would pair crooked inspectors together to collect the money.
Ezra has harshly criticized what he called the "culture of corruption" that led to the criminal charges. Dennis Enomoto, liquor commission chairman, later said he believes the commission will change the way it operates.
The city auditor later issued a report saying the commission's "inadequate management and oversight" hurts the agency's ability to effectively regulate O'ahu's 1,500 bars, clubs, restaurants, stores and other outlets that sell liquor.
City Councilman Charles Djou called for the removal of commission administrator Wallace Weatherwax and chief investigator John Carroll. But both said they don't intend to resign and are working to improve the commission.
Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com or 525-8030.
A former inspector, who was brought back to Hawai'i after fleeing to the Philippines, received a sentence of five years and five months; another who used to be a police officer got a term of three years and five months; and a third who was a liquor inspector supervisor received a five-year term.
David Ezra