Wife of former Hawaii union boss gets 70 months

The wife of a Hawaii labor union’s former business manager convicted of fixing a vote to raise dues and using members’ money to fund an affluent life of first-class travel and luxury vehicles will serve 70 months in federal prison.

Following a four-week trial, on Nov. 21 a federal jury found Brian Ahakuelo, 61, former elected business manager and financial secretary of the Inter­national Brotherhood of Electrical Workers, Local Union 1260, and his wife, Marilyn Aha­kuelo, 59, guilty of one count of conspiracy, which carries a maximum sentence of five years, and 42 counts of wire fraud, which each carry a maximum sentence of 20 years in federal prison, according to the U.S. Attorney’s Office.

The Ahakuelos were also convicted of multiple counts of embezzlement of labor union assets: six counts for Brian Ahakuelo and three counts for Marilyn Aha­kuelo. Each count carries a maximum sentence of five years in federal prison.

Brian Ahakuelo’s sentencing was rescheduled to June 21.

Speaking outside of federal court Tuesday, IBEW Local 1260 Business Manager Leroy Chincio said the union was “moving forward” and that it was “about time the members of Local 1260 got their due justice.”

“We glad she went prison, and we waiting for Brian, see how long he going get,” said Chincio. “She (Marilyn Aha­kuelo) like mention her family and the hardship on her family. Let me tell you about my union family that they went screw over. That’s what we worried about. That’s who took the jerk. And now is the time she is going to have to pay the price.”

Assistant U.S. Attorneys Michael F. Albanese and W. Keaupuni Akina, who prosecuted the case for the government, had asked Senior U.S. District Judge Helen Gillmor to send Marilyn Ahakuelo to federal prison for 70 to 87 months in a memorandum authored March 21 by Albanese.

Speaking in court Tuesday, Albanese acknowledged the letters of support from family and friends but noted that “every person is complicated” and fraud cases often reveal elements of humanity not often known by those closest to the criminal.

“There is no question by the jury’s verdict,” Albanese said. “They convicted this defendant of knowingly participating in a scheme to fabricate the results of a dues increase vote.

“So while it does not require that this defendant was any sort of mathematician, the conviction was that she knew what she was doing to the extent that she knew she was faking the vote. The union … improperly collected $3.7 million. … That’s the consequence of what she did. She knew what she was doing when she was assisting her husband and others.”

During the trial, Marilyn Ahakuelo claimed she was doing high-level, business manager work worthy of a six-figure salary, but at sentencing the argument was that she was merely a clerical worker, Albanese told Gillmor.

Ahakuelo’s attorney, Rebecca S. Lester, had asked for probation or no more than six months behind bars.

Speaking in court Tuesday, Lester noted the letters of support from family members and described Aha­kuelo as “remorseful and apologetic” and a “good person” whose role in the conspiracy she was convicted of participating in was “minimal.”

Ahakuelo told Gillmor she accepted “what has happened” and will continue to atone for her crimes.

“I am sorry for everything. … I have been working since I left here (after the trial). I have not gotten into trouble. I did seek cognitive therapy to help with the issues I am going through. … I do not have any criminal background,” said Ahakuelo, addressing Gillmor’s court. “I am hoping I can receive a fair sentence. I am going to continue paying my debts to society. … I do have a close relationship with my kids and my grandkids, and I’m hoping we can continue that … but if anything I can ask, is if I could get a lenient sentence, for today.”

Before she handed down her sentence, Gillmor said she did not “believe it is possible to take the position that she (Ahakuelo) did not know what was going on.”

She noted Ahakuelo’s more than $94,000 in consumer debt and how she used the union credit card to book first-class travel to visit family members and accepted a 21-day, around-the-world trip for no official union business.

The Ahakuelos filed for Chapter 7 bankruptcy in 2001, according to court records.

After she got caught, Ahakuelo claimed she couldn’t afford an attorney and asked the court to appoint one funded by tax- paying Americans.

“I don’t doubt that Mrs. Ahakuelo is a good mother; she’s certainly demonstrated she’s a good wife. But I have to look at who suffered from this,” Gillmor said. “Since this has happened … charged with all these felonies … she acquired a 2021 Mercedes. A person charged with a crime for this type of fraud, while they are facing trial, goes out and buys a Mercedes. There are inconsistencies here that are really troubling. It doesn’t tell me there is a recognition of wrongfulness here. It doesn’t look like there is a change in attitude.”

Gillmor agreed to recommend to the Federal Bureau of Prisons that Ahakuelo serve her time at either the Federal Prison Camp Alderson in West Virginia or the FPC Bryan in Texas.

Ahakuelo must report to federal prison by 2 p.m. May 17.

While working for the union, Brian Ahakuelo had the authority to hire and manage staff and maintained “autonomy and complete control over the finances,” according to the Aug. 22, 2019, federal indictment.

He was accused of filling vacancies on the union’s executive board with people who had no experience and who were loyal to him, including family members. According to court documents, he paid his family excessive wages in violation of union bylaws and used members’ money to pay for his family’s personal expenses, including a $597 restaurant tab.

The Aha­kuelos spent nearly $10,000 on airfare for trips that had nothing to do with union business to Macau, Tokyo, Virginia and Las Vegas, where the couple would stay for weeks or months, according to the indictment.

Brian Ahakuelo used $24,594 in union dues to pay off the loan on his wife’s Toyota Tacoma pickup truck.

Ahakuelo earned a salary of $160,285 in 2012, according to records filed with the U.S. Department of Labor. By 2015 his salary had increased to $201,492. Marilyn Ahakuelo, as director of community services, earned $105,119 in 2015.

Local Union 1260 represents more than 3,500 electrical workers in Hawaii and on Guam.

Authorities say after depleting Local 1260’s surplus of over $700,000 in 2010 to a net deficit of over $700,000 in 2014, Brian Ahakuelo proposed a huge hike in union fees to 3% from 1.5% of wages in April 2015, 3.5% in April 2017 and 4% in April 2019.

In the indictment, the Ahakuelos and Marilyn Ahakuelo’s sister, Jennifer Estencion, were accused of falsifying election results in two of the nine bargaining units, and Marilyn Ahakuelo was accused of falsifying the minutes for the Unit 4 membership meeting to say that the January 2015 votes were 98 in favor and 11 against the dues hike, according to federal court records.

Brian Ahakuelo and Estencion were accused of rigging the Unit 9 election on Guam later that month, with Estencion accused of submitting fake ballots that indicated the resolution passed by a vote of 293-32.

Four other IBEW staffers were indicted for helping to fix the outcome of the rate hike vote.

Estencion was found not guilty at trial.

Albanese, Lester and Marilyn Ahakuelo declined comment after the sentencing.