Mayor’s aides testify on boss’ spending during theft trial
HAWAII TRIBUNE-HERALD
Paulette Wilson: She said she would ask the mayor for explanations for charges, but said “very few” were submitted to the Finance Department with blanks in the purpose category.
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HOLLYN JOHNSON / HAWAII TRIBUNE-HERALD
Mayor Billy Kenoi sat with his attorneys Todd Eddins, right, and Richard Sing on Day 2 of his trial Wednesday in Hilo Circuit Court.
HILO >> Current and former aides to Mayor Billy Kenoi testified at his criminal trial Wednesday as the state sought to build a theft case against the mayor.
Kenoi is accused of making improper purchases on his county purchasing card, or pCard, and then tampering with the records.
His executive secretary, the current and former Hawaii County finance directors, his former executive assistant and a bank executive all testified on behalf of the prosecution. Five of the employees were granted immunity for testifying about their boss, who appointed them to their positions.
The jury heard County Finance Director Deanna Sako testify that, as the pCard administrator, she would let the mayor know when a request from the media came in for records when it pertained to him.
Deputy Attorney General Michelle Puu asked her why she had to inform the mayor.
“We always clear things with the mayor,” Sako said.
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Kenoi has acknowledged paying the county back $31,000 in unauthorized personal expenses charged on the pCard. He charged a total of about $129,000 on his pCard, including alcohol purchases, which are now blocked.
“We have asked the bank to block alcohol,” when it comes to pCard use, Sako said. “In general, it is not allowed.”
She said she did not recall when it was blocked.
The state alleges that some reimbursements did not occur until two years later, often only after media requests.
Kenoi was indicted in March on charges of theft, tampering with government records and false swearing relating to his alleged abuse of his county purchasing card.
The charges focus on 15 transactions from 2011 to 2014. The prosecution said that the receipts were found through the state’s own investigation, and that the mayor failed to provide the receipts to the county Finance Department.
The transactions total $4,129.31, which the state alleges were for personal use, and should not have been charged on the pCard.
The defense claims the charges were for both county purposes and personal, and that Kenoi reimbursed the county $3,929.31 for 14 of the 15.
Kevin Dayton, a former executive assistant and executive director for the mayor between 2008-2011 and 2012-2015, returned to the witness stand Wednesday after beginning his testimony Tuesday.
Dayton, who is now the Capitol bureau chief for the Honolulu Star-Advertiser, was offered but declined immunity. His attorney, Ted Hong, said Dayton has nothing to hide.
The prosecution alleges that the mayor charged $320 on his pCard for a farewell party for Dayton at the Hilo Yacht Club, but labeled the event as an “office strategic planning luncheon” on his pCard summary.
Dayton testified that at the luncheon, he spoke with other Kenoi Cabinet members about the transition after he left and exchanged information with them.
The receipt contained glasses of wine and other alcoholic beverages.
Dayton told Kenoi’s attorney Todd Eddins during cross-examination that the mayor was authorized to purchase alcohol, but said he was not aware of what the County Code said.
Eddins asked him whether it was common to discuss things over alcohol.
“It’s not uncommon for discussions to buy a beer or to have a drink, at least in my experience,” Dayton said.
The mayor’s secretary, Paulette Wilson, testified she had to sometimes wait for receipts from the mayor.
After seeing the pCard summaries, she testified it was the mayor who probably provided the purpose for most of the 15 transactions in question.
Puu questioned why there was a blank for the purpose of a charge from Huggo’s, a Big Island restaurant.
Wilson explained she would ask the mayor for explanations for charges, but said “very few” were submitted to the Finance Department with blanks in the purpose category. She said the deadline to submit the bank statements, pCard summaries and receipts or affidavits to the Finance Department was not more than a month.
ABOUT Dayton’s farewell luncheon, she said: “It kind of turned into a strategic planning luncheon.”
She shook her head when asked whether wine was consumed at the lunch, saying that was not done during the workday.
She failed to recall 14 of the 15 receipts shown to her by the state, including a $600 receipt for Bacardi, Grey Goose, Fireball, Crown Royal and Absolut from Clyde’s Gallery in Washington, D.C., saying it was a long time ago.
She did recall one receipt for Volcano House, saying it was for U.S. Conference of Mayors visitors.
The prosecution also called a First Hawaiian Bank executive to explain what a “consumer purpose line of credit” is. He said it is an unsecured revolving loan up to $25,000, similar to a credit card.
He confirmed a “Personal First Line” check written by Kenoi to the Finance Department was such a loan — that is, a loan to Kenoi from the bank.
Kenoi supporters at the trial included the mayor’s wife, relatives and friends.
The jury trial continues Monday before Judge Dexter Del Rosario.
26 responses to “Mayor’s aides testify on boss’ spending during theft trial”
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Among non-violent crimes, there are few that are conceptually worse than betrayal of the public trust by an elected official and abuse of authority. Mr. Kenoi had multiple opportunities to halt his criminal activities but did just the opposite, then tried to cover up his activities with paybacks. He should be found guilty and sentenced to the full extent of the law.
Mayor Kenoi couldn’t “halt his criminal activities” because he didn’t view it as criminal activities. To him, it was part of the perks and entitlements that came with the office. Every elected official that has a pCard should have their receipts audited.
from what was reported:
the big island mayor has approval for all pcard purchases.
there is no statutory deadline on reimbursing personal purchases made on big island pcards.
liquor was not a prohibited purchase on big island pcards.
seems that the county of hawaii is deficient in laws pertaining to the use of the pcard.
kenoi might skate. morally hauna, but legally a grey area.
From what I gather so far you st1d are absolutely correct. he may skate right on out of there.
He needs Hillary’s attorney.
Nah, he needs James Comey to explain that there was no intent to defraud the taxpayers.
This case is not in federal court, where it should be because one of the crimes the FBI investigates is white collar crime by public officials, which this is. Hee was prosecuted in federal court. This mayor is standard Hawaii issue, from A to Z this is how political office is done. The fix is always in when one party rule exists.
he needs chumps accountant
He’s taking the Rod Tam defense that these expenditures were work-related. Sure they were.
There’s no question about whether Billy spent the money of liquor and other lavish items. The question is whether it was against county rules.
Why did he start trying to pay the money back if he did nothing wrong?
Tam is running to be my State Senator. LOL.
Actually. in his world it is work related. But in the real world its not!
I don’t like Kenoi, but I don’t know the whole story so I am holding my judgments. My family lives on the Big Island. But I know one thing. The press will slant things in the manner to slay public opinion. I have a someone I know well and went on trial and the press ate him alive because of press releases by law firm. If any of you were in that situation, it would eat and tear away your very being, even though you are innocent. There have been people who has lost their very being because of tactics, not guilt being thrown out there by lawyers and the press. God bless
I don’t understand why Kenoi wasn’t able to or chose not to strike a plea bargain deal. Surely he could have admitted he screwed up, paid restitution, and asked for forgiveness. From what I’ve read to date, I can’t imagine that he’ll be acquitted. He must be so arrogant to believe he’ll win and/or he so thoroughly pissed people off that they’re out to get him.
How can the Star Advertiser keep Kevin Dayton as their capitol bureau chief? He has proven himself to be a toady for the mayor and his chief apologist (liar) to the media. This is not someone I can trust to give us the true story.
Blatant disregard for the law is no excuse.
Who does Billy think he is? Hillary?
Kenoi is being charged with theft but they say he misused the government credit card. Since when does misuse become theft. Theft is when you dont pay back the money which he did. I dont see the evidence for the theft charge.
If someone takes your car without permission, drives it around for a couple years, then returns it when people start asking troubling questions, is that theft? If someone takes money from the bank without permission, uses it for a couple years, then returns it when the newspapers start asking questions, is that theft or is it OK?
the circumstances surrounding the big island pcard use are unique to that county.
1. the mayor authorizes all purchases.
2. there is no deadline set for reimbursement of personal purchases made on the pcard.
3. there was no prohibition on purchasing liquor with the pcard.
we know it’s not okay, but, hawaii county was and still is lacking in rule making for the use of county pcards.
So Kenoi had to borrow the money from FHB to pay back the county charges. That is proof itself that he intended to steal this money from the taxpayers when he made the charges. If he were an honorable man he would have pled guilty and saved the taxpayers the trouble and costs of a trial. No doubt he’ll be found guilty but somehow I doubt he’ll go to jail.
What was he doing in the dive bars?
Fishing!
supporting single mothers.
The State is just wasting money and time on this case. Kenoi has paid back the money and the State doesn’t have much of a case if they only can focus on 15 improper purchases. Many of the purchases on the pCard are questionable as whether they were legal or not.
I am sure there are many politicians in Hawaii and directors of departments using the pCard maybe not going to the bars, but using the pCard for traveling and entertainment.
It’s good to be the King!