State lawmakers redirect campaign contributions from Honolulu businessman at center of corruption investigation

Sitting state lawmakers who accepted legal campaign contributions from a wastewater and industrial machinery executive involved in a federal corruption case say they are redirecting the money to the Hawaii Campaign Spending Commission and a mainland nonprofit involved in criminal justice issues.

Milton J. Choy, owner of H2O Process Systems and Fluid Technologies, donated $160,150 to more than 50 state and county lawmakers since 2014 and received nearly $6 million in government contracts. The total includes $56,850 given to the campaigns of current state senators and $20,600 to active House members.

The House members are forfeiting any donations from Choy to the Campaign Spending Commission or giving it to the nonprofit Criminal Justice Action Network, according to state House Finance Chairwoman Sylvia Luke. CJAN is a student-run organization at Columbia Law School in New York.

On the Senate side, Choy’s donations will be going to the Campaign Spending Commission.

“We do not condone illegal actions that have recently occurred. In lieu of returning Milton Choy’s campaign contribution directly to him, we will be redirecting his donations to the Campaign Spending Commission,” read a joint statement from state Sens. Donovan Dela Cruz, Ron Kouchi, Gil Keith-Agaran, Clarence Nishihara, Michelle Kidani, Roz Baker, Stanley Chang, Maile Shimabukuro, Dru Kanuha, Lynn DeCoite, Glenn Wakai, Lorraine Ino­uye and Karl Rhoads.

Dela Cruz, chairman of the Senate Committee on Ways and Means, organized the redirection of campaign contributions to the commission.

Luke, who is running for lieutenant governor, appeared on the Honolulu Star-Advertiser’s “Spotlight Hawaii” livestream program Friday and addressed the U.S. Department of Justice investigation and Choy’s dealings.

Luke said her campaign treasurer is reviewing contribution records to capture any donations from Choy and his business associates, and will donate the money to the Campaign Spending Commission for use in investigating campaign spending violations, according to a news release from her campaign.

She also called on other lawmakers, “whether currently in office or not,” to redirect donations from Choy to help start “restoring public trust in government,” the release said.

In addition to Luke, Choy made campaign contributions to state Reps. Henry Aquino, Della Au Belatti, Greggor Ilagan, Nicole Lowen, John Mizuno, James Tokioka, Aaron Ling Johanson, Lisa Kitagawa, Bertrand Kobayashi, Chris Todd, Ryan Yamane and Kyle Yamashita.

Identified as “Person A” in two felony charging documents filed Tuesday by DOJ, Choy allegedly bribed two state lawmakers with cash payments and other incentives.

Choy has been cooperating in the ongoing federal investigation looking into allegations of public corruption that go back to at least 2014.

Federal prosecutors have filed “honest services wire fraud” charges against retired state Senate Majority Leader J. Kalani English and former state Rep. Ty Cullen, onetime vice chairman of the House Committee on Finance.

English retired from office effective May 1, citing lingering effects from COVID-19, and Cullen resigned Tuesday before the allegations were made public.

The two are scheduled to enter guilty pleas Tuesday in U.S. District Court.

English’s Senate colleagues are reviewing his work, voting history and other aspects of his tenure, according to state Senate leadership.

“We are in the process of reviewing his bills, vote history and any official business that he conducted while serving in the Senate,” said Jacob Aki, Senate director of communications, in a statement to the Star-Advertiser.

The Senate Committee on Government Operations introduced a bill Friday afternoon that would set up two new divisions under the Department of the Attorney General to address fraud, white-collar crime, political corruption, and sex and human trafficking, according to a news release.

The proposal, introduced by Kanuha, would appropriate $834,000 to fund a special investigation and prosecution unit and $754,000 to operate the sex and human trafficking unit.

“In working closely with the Attorney General and Senate Ways and Means Committee Chair Donovan Dela Cruz, we believe that the establishment of these two divisions within the Department of the Attorney General will provide the state with the ability and jurisdiction to investigate wrongdoings by individuals who commit fraudulent crimes and exploit women and children,” said Sen. Sharon Moriwaki, committee chairwoman.

“This measure also reinforces our commitment to ensure that the public’s trust in government is not undermined by those who abuse their positions of power.”