Embattled Hawaii County Mayor Billy Kenoi promised to cooperate with a state attorney general’s criminal investigation into his county-financed trips to Honolulu hostess bars and other personal expenses but does not plan to talk about the issue anymore.
"I respect the decision by the Department of the Attorney General, and will cooperate fully as the process unfolds," Kenoi said in a statement Tuesday following Attorney General Doug Chin’s decision to investigate Kenoi’s use of his county-issued purchase card, or pCard.
"I remain committed to the people of Hawaii island and to my responsibilities as mayor," Kenoi said through his spokesman, Peter Boylan. "I deeply regret the pain that this investigation will cause to my family and to the fine people of our community. I do not anticipate making further public statements regarding this matter."
Kenoi, a married father of three teenagers, previously worked as a Honolulu deputy public defender and has retained three Honolulu criminal defense attorneys.
Chin declined to discuss what potential crimes his department will look at — or even how many investigators and attorneys have been assigned to the case.
But Chin said it usually takes months to fully investigate "white-collar offenses or offenses involving financial fraud or financial crimes."
"In any case that involves looking at records, typically the time frame is longer than a physical crime where you just have witnesses who can talk about something that occurred," Chin said.
Chin’s office agreed to take the case to avoid any conflict of interest for Hawaii County Prosecutor Mitch Roth, an elected official who serves in Kenoi’s Cabinet.
"We’ll first try to determine whether or not there’s anything that warrants criminal charges," Chin said.
To bring a criminal case, Chin said, his office must believe there is "proof beyond a reasonable doubt of (a violation of) existing state statute or county ordinance. Even if we come to the conclusion that nothing rises to that level, we would still take a look at whether there should be administrative penalties that we would recommend" to either the Hawaii County Council or perhaps the Hawaii County Ethics Commission.
Asked which potential state or county crimes may be considered, Chin said, "We will look at the possible statutes or county ordinances that might be impacted by the conduct that’s been reported."
He declined to say whether his investigators’ inquiries will be restricted to just Kenoi’s pCard use. State procurement officials said Hawaii County has issued about 237 pCards. Two of them — including Kenoi’s — have been canceled since March.
Kenoi also faces a county ethics complaint that could be heard in May; an audit of county pCard use that could come out in June; and the possibility of further pCard-related questions on April 22 when the County Council reviews budget requests of both the Mayor’s Office and the Finance Department, which processed Kenoi’s reimbursements.
The Office of Disciplinary Counsel, which was formed by the state Supreme Court to investigate complaints against Hawaii lawyers, said it cannot comment on whether it also has been asked to investigate Kenoi. The Hawaii State Bar Association said it would refer any allegations of unethical conduct by a bar member to the Office of Disciplinary Counsel.
Kenoi had been repeatedly warned about using his pCard for personal expenses, which included $400 that he spent in 2009 at the Camelot Restaurant and Lounge hostess bar on Sheridan Street on Oahu and an $892 tab at the Club Evergreen hostess bar on Kapiolani Boulevard on Oahu in December 2013.
From 2009, when Kenoi took office, to 2015, county records show lavish spending for drinks, dinners, luxury hotels and more than $100,000 on trips to Washington, Las Vegas, San Francisco, Texas, the Philippines and Japan. Kenoi also used his pCard to pay for a $1,200 surfboard, his $565 Hawaii Bar Association dues and luxury stays at the Marriott Waikoloa Beach at $469 per night.
Boylan said Friday that Kenoi spent $129,580.73 on his pCard since taking office in 2009 and has reimbursed the county $31,112.59. On Friday he repaid an additional $2,055.12 in travel charges, Boylan said.
Councilwoman Margaret Wille told the Honolulu Star-Advertiser that her card was canceled in March after County Clerk Stewart Maeda appropriately questioned two first-class airline tickets to Honolulu and back from Hawaii island to testify before the state Legislature; and for an ocean-view hotel room upgrade for a conference Wille spoke at in Honolulu.
Wille said the first-class seats cost the same as coach. She said she is willing to reimburse the county for the $20.81 ocean-view room upgrade.
Maeda told the Star-Advertiser on Tuesday that Wille’s pCard was canceled March 20 after she was repeatedly reminded that her travel plans needed to be approved by the County Council chairman and Clerk’s Office two weeks in advance — and that she needed to meet deadlines for turning in reimbursement requests.
"When you look at those two incidents, it (canceling Wille’s card) doesn’t seem warranted," Maeda said. "But there were procedural things that were happening as well. There was a pattern of not following procedures, which is more troubling. You cannot just travel and afterward put in a travel claim."
Maeda’s office is responsible for oversight of about a dozen pCard accounts for the clerk’s office and the County Council offices — but not for the mayor’s pCard spending, Maeda said.
Although the Finance Department ultimately authorizes or questions pCard accounts, Maeda said each county office has its own procedures.
"Every department handles their own pCard expenditures," he said, "and every department handles it differently."
