Attorney for Mitsunaga & Associates arrested by federal agents in California

The attorney for a politically prominent Honolulu engineering executive accused of conspiring with the former Honolulu Prosecuting Attorney to frame an ex-employee for theft in exchange for campaign donations was arrested by federal agents this morning in connection with the case.

Sheri Jean Tanaka, who represents Mitsunaga & Associates or MAI, was named in a first superseding indictment unsealed this morning in federal court. Tanaka was “arrested in the Central District of California and is currently in custody,” according to a motion to unseal the document, filed by federal prosecutors.

On Jun. 2, Tanaka’s employer, Dennis Mitsunaga, 78, was indicted by a federal grand jury with former Honolulu Prosecuting Attorney Keith Kaneshiro, 72 and three others on charges of conspiracy to commit honest services fraud, federal program bribery and conspiracy to violate the rights of the former MAI employee.

This morning a first superseding indictment secured Sept. 8 was unsealed, allowing federal agents to take Tanaka into custody.

Mitsu­naga is president and CEO of MAI, and a longtime contributor to Hawaii political campaigns.

Also charged in the original and superseding indictment were Terri Ann Otani, 66, MAI corporate secretary and office manager; Aaron Shunichi Fujii, 64, MAI’s executive vice president and chief operating officer; and Chad Michael McDonald, 50, MAI senior vice president.

Kaneshiro, Mitsunaga, Otani, Fujii and McDonald have pleaded not guilty and are free on $50,000 bond pending trial. All but Mitsunaga appeared by telephone this morning and entered not guilty pleas to the first superseding indictment, according to federal court documents. Their pretrial release was continued.

The case is being handled by a Special Prosecutor, Assistant U.S. Attorney Michael Wheat and a team of federal prosecutors from San Diego.

Their trial is scheduled for March 21 at 9 a.m. before Chief U.S. District Judge J. Michael Seabright.