President of telecom company indicted in tax case

Sandwich Isles Communications President Albert Hee was charged this week with making a false statement on his 2007 income tax return.

A federal grand jury returned an indictment Wednesday saying Hee reported that his income was $183,464 when it was really $438,928.

Sandwich Isles provides telephone and high-speed Internet service to customers living on Hawaiian Home Lands. To provide the service, Sandwich Isles receives a federal subsidy from a program funded by a fee of up to $2.75 charged on every phone bill.

The Federal Communications Commission, which oversees the program, said last year it was cutting the subsidy to $250 per Sandwich Isles customer from about $830 per customer.

In its decision, the FCC said Sandwich Isles has certain expenses that appear grossly excessive and unreasonable. The FCC also said Sandwich Isles has spent millions of dollars with affiliated and related entities, owned by the private trusts of Hee’s three children, for services that appear unrelated to the provision of a broadband-capable network.

Hee is the brother of veteran state Sen. Clayton Hee.