The case involving Chad McDonald and several other individuals has brought the issue of political influence and alleged corruption in Hawaii to the forefront. This article delves into the details of the trial, the key figures involved, and the ultimate verdict.
Key Figures in the Case
Several individuals were central to the case, each playing a significant role in the events that unfolded:
- Keith Kaneshiro: Former Honolulu prosecutor, accused of being influenced by campaign donations.
- Dennis Mitsunaga: Businessman accused of using money to influence island politicians for his own benefit.
- Aaron Fujii: Then-Mitsunaga & Associates executive vice president and COO.
- Chad McDonald: Senior vice president at Mitsunaga & Associates.
- Terri Ann Otani: Secretary at Mitsunaga & Associates.
- Sheri Tanaka: Attorney associated with the firm.
Allegations and Charges
The defendants faced serious allegations, including possible fines and up to 15 years in prison on two separate conspiracy counts. The charges stemmed from alleged illegal activities related to campaign donations and their potential influence on political figures.
The feds said this was accomplished with the assistance of then-Mitsunaga & Associates executive vice president and COO Aaron Fujii, senior vice president Chad McDonald and secretary Terri Ann Otani, as well as attorney Sheri Tanaka, all of whom were also acquitted on Friday.
The trial highlighted the largess of his political giving. The businessman and his associates donated more than $1 million to candidates between 2006 and 2021, evidence showed. Documents and evidence showed at least some of the Mitsunaga group’s campaign contributions were illegal straw donations made in the names of people who didn’t actually provide the money.
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The Trial
Over the last two months, a jury heard the case against Kaneshiro, Mitsunaga and his associates in meticulous detail. The trial took two months. Throughout the trial, the defense maintained that the donations were a constitutionally protected form of political support and that their pursuit of Mau was based on a good faith belief that she had stolen from the company.
The defense argued that there was no evidence that Kaneshiro ever pressured Delaplane or anyone else to pursue the case. Attorney Tommy Otake, representing Chad McDonald, told the jury they could only convict if they were “firmly convinced” of the government’s allegations. He emphasized that to convict, they must be “firmly convinced” of the defendants’ guilt.
Several donations were made close together, which defendants Fujii, McDonald and Otani were unable or unwilling to explain during grand jury testimony that was played for the jury. Some of the donations were fraudulently made in the names of Otani’s sister and niece, evidence showed, which were likely violations of state campaign finance law. But Otani has not faced state charges.
In Mitsunaga’s defense, Marino noted that the money donated to Kaneshiro represented less than 5% of the Mitsunaga team’s political giving in recent years.
The Verdict and Reactions
After the verdict was read, some defendants and their attorneys broke down in tears and the gallery, full of their loves ones, erupted in applause. Tearful defendants and their attorneys embraced after the clerk read the verdict.
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Former Honolulu prosecutor Keith Kaneshiro said he felt vindicated after the verdict. In remarks outside the courthouse, Kaneshiro criticized federal prosecutors for putting him and his co-defendants “under a cloud of suspicion” for years. “The jury came back in a day and a half,” he said. “What does it say about the government’s evidence and its investigation? I feel vindicated.
On Friday afternoon, Tommy Otake, McDonald’s attorney, said the jurors heard all the evidence and made the right call. She thanked her family, friends and supporters after the verdict was read. “We’re so very grateful that justice was served today and we each get to go home with our families and friends,” she said.
Aftermath and Ongoing Issues
Mitsunaga could still face charges of witness tampering and obstruction of justice for his alleged efforts to change the testimony of one of the trial witnesses. A grand jury has been convened on that matter, and Mitsunaga has been in custody for weeks, but charges have not been announced. Mitsunaga was released from custody after the verdict was read. “I’m glad to be out of that cold cell,” he said.
Mitsunaga, 82, has long been accused of using money to influence island politicians for his own benefit and has been investigated over the years. But the federal case was the first time he was charged with a crime.
Federal prosecutor Michael Wheat has been investigating corruption in Honolulu for about a decade. Wheat declined to comment after the verdict on Friday. Outside the courthouse, Kaneshiro criticized Wheat’s team and invited the media to investigate them. “Why don’t you folks investigate how much money the federal government is paying by sending these special prosecutors from the mainland to come to Hawaii and to go after Hawaii citizens?” he said.
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In 2019, Wheat successfully prosecuted the largest corruption case in Hawaii history.
Chronology of Events Involving Laurel Mau
The case also involved Laurel Mau, whose experiences with Mitsunaga & Associates were central to the allegations.
- Mau claimed she was fired without explanation by Mitsunaga’s company and then prosecuted at her former boss’s behest.
- Mau then decided to sue Mitsunaga & Associates for sex and age discrimination.
- In 2012, as Mau prepared to file a lawsuit against the firm for gender and age discrimination, defendant Aaron Fujii reported a “theft” to Honolulu police.
- The company then repeatedly contested Mau’s claims for unemployment benefits.
- In 2017, state court judge Karen Nakasone threw out the charges against Mau and lambasted the prosecution’s reliance on information “orchestrated” by Mitsunaga & Associates.
- Aside from the theft prosecution, Mitsunaga’s team also tried to get Mau in trouble with tax authorities.
- In August 2014, Otani filed a complaint to the state tax office accusing Mau of tax evasion and fraud.
According to Mau, she had permission to do work on the side if the value was less than $15,000, and she wasn’t paid for most of the approximately 40 side jobs she did during her employment. Mau claimed she made up her work time on nights and weekends, but there was no evidence to prove that.
At Kaneshiro’s request, two experienced prosecutor’s office employees looked into Mitsunaga’s complaints and found no basis for a criminal case. The firm’s lawyer, Sheri Tanaka, gave Delaplane reams of civil lawsuit records which he turned into theft charges via a felony information - a charging mechanism that sidesteps a grand jury.
During the trial, Delaplane acknowledged that there was no independent law enforcement investigation into Tanaka’s claims. The lack of scrutiny was problematic, according to federal prosecutors, because the documents Mitsunaga’s company provided cherry-picked and skewed information to paint Mau in the most negative light possible.
In 2017, Judge Karen Nakasone threw the case out for lacking probable cause and ripped city prosecutors, accusing them of being a “conduit” for Mitsunaga. In spite of that condemnation, Kaneshiro asked his staff to appeal Nakasone’s dismissal.
Former deputy prosecutor Jake Delaplane acknowledged there was no law enforcement investigation into the Mitsunaga firm’s claims.
Political Context
Allegations of pay-to-play corruption have surrounded Mitsunaga for years due to his heavy political giving and frequent receipt of government contracts. The businessman and his associates donated more than $1 million to candidates between 2006 and 2021, evidence showed. At the same time, Mitsunaga’s firm has benefitted handsomely from government contracts, receiving work worth at least $49 million since 2011 alone.
“It’s a step beyond getting a government contract,” said Hawaii political scientist Colin Moore.
The case was brought forth by Special Prosecutor Michael Wheat of San Diego who has been investigating public corruption in Honolulu since at least 2015.
Kaneshiro, Dennis Mitsunaga, Terri Ann Otani, Aaron Fujii, Chad McDonald and Sheri Jean Tanaka are all charged with conspiracy.
Key figure in Kaneshiro, Mitsunaga bribery and corruption case testifies
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