| This story has been corrected. See below. |
After three years of investigation, city Prosecutor Keith Kaneshiro said he’s not through in his pursuit of alleged gambling with sweepstakes machines.
"This is not the end of this investigation," Kaneshiro said at a news conference Monday. "We have ongoing investigations."
Joining him at his office were top brass of the Honolulu Police Department, including Police Chief Louis Kealoha.
Kaneshiro said the indictment of nine individuals Thursday on 414 counts of gambling promotion, racketeering, possession of gambling devices and money laundering had nothing to do with a ruling that day by a federal judge.
Judge Leslie Kobayashi ruled Wednesday in a lawsuit that the manner in which the Products Direct Sweepstakes machines were used constituted gambling.
Kaneshiro said the grand jury convened Wednesday, and the indictment had been sealed by a state judge until Monday.
The indictment was based on the assertion that Products Direct Sweepstakes machines are gambling machines, he said.
The lawsuit seeks the return of machines confiscated by police.
Attorney Keith Kiuchi, who represents the plaintiffs, said in an interview that six of the individuals indicted are plaintiffs or connected with the plaintiffs in the lawsuit.
Bench warrants were issued Thursday, and five people were arrested Friday: Tracy Yoshimura, Eugene Simeona Jr., Clayton Simeona, Gary Danley Jr. and Alexander Alejandro. Yoshimura is owner of PJY Enterprises, a distributor of the Products Direct Sweepstakes machines.
On Monday police arrested Quentin Canencia and Desiree Haina. Michael D. Miller Jr. and Michael A. Madali Jr., who are on the mainland, will be arrested when they arrive in Honolulu, Kaneshiro said.
All those arrested have been charged with felonies.
Charges include illegal ownership or operation of a business, which is a racketeering statute. If one uses or operates a business that promotes criminal activity, it constitutes a racketeering enterprise, Kaneshiro said.
Although numerous arrests and seizures of the alleged gambling devices have occurred since September 2012, Kaneshiro said it has taken a long time to bring indictments because the cases are complex, requiring search warrants, undercover police work, seizures of property, inspection of the machines’ innards, analysis of records and review of surveillance video.
Kaneshiro said arrests and seizures of 200 machines have occurred at seven companies and 14 locations.
He warned those continuing to operate the alleged gambling devices to remove them from their places of business.
"We will remove the machines and we will also forfeit property," he said, adding that the city "will not tolerate illegal gambling."
Kaneshiro said police, the attorney general and the prosecutor’s office were involved in the investigation and seizures.
Illegal gambling sites in the United States make $10 billion a year and are unregulated and not paying taxes, he said.
Police Narcotics Vice Division Maj. Jerry Inouye said police have responded to numerous complaints of gambling and reports of robberies and property crimes at or near game rooms.
Considering the number of complaints, "it’s clear the public was not happy," Inouye said.
In response to the amount of resources needed to address the alleged gambling devices, Kealoha said, "What price would you put on having and living a safe community? There’s no amount of resources that can measure the value of that."
Asked why he’s focused on gambling in a city where many travel to Las Vegas to engage in it, Kaneshiro said, "My job is to enforce the law. As long as gambling is illegal in the state of Hawaii, we will enforce the law."
Kiuchi, attorney for the plaintiffs in the lawsuit, filed a motion Monday to certify Kobayashi’s order in preparation for an appeal.
"We are very strong in our opinion that there are errors in her order," he said.
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CORRECTION: An Oahu grand jury indicted nine people Thursday on gambling, racketeering and money laundering charges. Five were arrested Friday.
An earlier version of this story said they were indicted Wednesday and arrested Thursday.
