The 40-year-old leader of a group that operated illegal game rooms, online gambling applications and sold methamphetamine and cocaine out of a restaurant and snack shops on Oahu and Maui was sentenced Thursday to more than 16 years in federal prison.
Maliu Tauheluhelu, of Honolulu, coordinated cocaine and methamphetamine distribution, illegal game rooms and online betting applications on Maui and Oahu. His alleged co-conspirators are Maafu Pani, Touanga Niu and Desmond Morris.
Tauheluhelu was arrested in June 2022 on Oahu. Pani and Niu, and Morris, a Maui resident, were arrested on Maui.
U.S. District Judge Jill A. Otake also sentenced Tauheluhelu to five years of supervised release after he completes his 200-month prison sentence,.
He pleaded guilty Feb. 15 to two counts of conspiracy, one for possessing with intent to distribute methamphetamine and cocaine and the other for operating an illegal gambling business between 2020 and 2022.
“This sentence demonstrates that those who traffic dangerous drugs and operate illegal game rooms will face serious consequences,” stated Acting U.S. Attorney Kenneth M. Sorenson, in a statement. “We are committed to holding criminal enterprises accountable and protecting our community from the destruction caused by drugs like methamphetamine. Illegal game rooms, like those run by Tauheluhelu, are magnets for violence and criminal activity. This outcome is the result of exceptional coordination and effort by our federal, state, and local law enforcement partners.”
Pani, Niu and Morris each pleaded guilty to federal felonies and were sentenced in 2024 for their roles in the conspiracy. Pani was sentenced to 192 months in federal prison, Niu got 30 months and Morris was sentenced to 72 months behind bars.
“Our collective efforts send a clear and decisive message: criminal enterprises that exploit and endanger our communities should think twice, as there is zero tolerance for such actions,” said Maui Chief of Police John Pelletier in a statement. “We are deeply grateful to our federal partners — FBI Honolulu and the DEA — and to the dedicated MPD officers and personnel who worked tirelessly to bring this operation to a successful conclusion. This achievement was made possible by the unwavering commitment, shared resources, and intelligence of all the involved agencies, reaffirming our dedication to keeping our communities safe for residents and visitors.”
Tauheluhelu’s group used burner mobile phones bought under other people’s names to communicate, according to federal court documents.
Tauheluhelu operated illegal game rooms at 975 and 980 Queen St., and in a secret “VIP” lounge above his “Staxx Sports Bar and Grill” restaurant in Waianae, according to a motion to detain Tauheluhelu and Pani.
The group managed a series of gambling applications that allowed users to play digital games from anywhere using credits that could be redeemed for cash.
Pani allegedly sold drugs and ran an illegal gambling business out of his Snaxx shops on Maui. Federal agents and Maui police seized guns, ghost guns, drugs, digital gambling machines, gambling ledgers and more than $60,000 in cash during the execution of 14 search warrants.
Tauheluhelu’s organization was dismantled by a joint investigation by the Maui Police Department and the FBI that utilized wiretaps, electronic surveillance and confidential informants to make controlled buys of methamphetamine and infiltrate the game rooms, according to federal court documents.
Thursday’s sentencing reflects “years of collaboration among multiple law enforcement agencies to dismantle a dangerous criminal organization,” said FBI Honolulu Special Agent in Charge David Porter in a statement. “The FBI — in coordination with our partners across all levels of government — will continue to use every available resource to protect our communities and bring these criminal enterprises to justice.”
The group allegedly used flights that bypassed Transportation Security Administration screening sites to move money and drugs between the islands.
The U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration aided the investigation.
Assistant U.S. Attorney Margaret Nammar prosecuted the case.
