Federal-city effort cracks down on illegal gambling

Local and federal law enforcement officers Monday raided homes in Pearl City and Waipahu, seized gambling machines and money in bank accounts, and arrested eight people in the latest effort to crack down on illegal gambling on Oahu.

“These enforcement actions strike at the very core of a type of criminal activity that has endangered our community for years. That activity is the operation of illegal gambling businesses,” U.S. Attorney Kenji Price said Tuesday at a news conference.

The eight people arrested are among 15 who were charged by secret indictment or criminal complaint earlier this month.

In addition, the government filed in court Monday papers seeking the forfeiture of the two homes that were raided. One is at 1577 Hoolehua St. in Pearl City, and the other is at 94-103 Pupupuhi St. in Waipahu.

Price said with the raids, seizures, arrests and filing of the forfeiture complaint, law enforcement is sending a clear message to owners of illegal game rooms.

“Our goal is to take your property through civil or criminal forfeiture. And if you or anyone else you know happens to get a cut of the proceeds of the illegal gambling, we’ll be trying to seize that, too,” Price said.

And to the criminals who operate the game rooms, he said the message is that law enforcement will prosecute them to the fullest extent of the law.

Price said the ongoing, local- federal joint investigation has identified 80 illegal game rooms on Oahu in commercial areas in residential neighborhoods. He said partners in the operation have seized approximately 60 illegal gambling machines and approximately $150,000.

Neighbors say they have been telling police about suspicious activity and increased traffic outside the Pearl City home, especially on Fridays.

According to Honolulu property tax records, Seng Cheong Lio purchased the Waipahu home in June. Seng Long Lio is one of six people charged with operating an illegal gambling business at the Pearl City home. The last person to purchase the Pearl City home in 2016 is not charged with any crimes.

Six of the eight arrested defendants appeared Tuesday in U.S. District Court. The other two were scheduled to appear in court today.

The charges against Jason Ishizuka, 38, Aiyan Zhang, 33, Lio, 30, Shi Min Huang, 33, Alex Hui Zhang, 33, Freddy Siatunuu, 31, Zongqui Ding, 33, Tommy Can Wei Lee, 50, Zhong Chen, 38, Endrews Setefano, 31, Paolo Ioane, 30, and Matthew Samuela, 31, are for conducting, financing, managing, supervising, directing or owning an illegal gambling business. The crime is punishable by up to five years in prison and a fine.

Honolulu Police Chief Susan Ballard said cracking down on game rooms is not just about prosecuting people for gambling. She said the game rooms attract and are connected to other crimes.

“The crimes that we’re seeing, the guns, the stabbings, it always, for the most part, 95% of the time, is traced back to either illegal gambling or drug activity,” she said.

Siatunuu is also charged with robbing at gunpoint a patron at the Hoolehua Street home in July after the patron had just won approximately $4,000 on an electronic video gambling machine.

The other three defendants are Pauulu Lavatai, 21, Ifo Nimoai Jr., 35, and Kenneth Puahi, 47.

Lavatai is charged with robbing an illegal game room on Liliha Street in February during which he pistol-whipped an employee of the game room. Nimoai is charged with methamphetamine, cocaine and marijuana trafficking, possessing a firearm to further drug trafficking and being a convicted felon in possession of a firearm and ammunition in November in an illegal game room in Waianae. Nimoai has a 2012 state conviction for first- degree robbery.

Puahi is charged with setting fire to a commercial warehouse in April after the landlords learned he was using space he leased in the warehouse for illegal gambling and had taken steps to evict him.

He was on bail on state firearm charges when he was arrested Monday in the Waipahu fire. Federal prosecutors are asking the court to order Puahi to remain in custody without the opportunity for release on bond pending trial in November. U.S. Magistrate Judge Wes R. Porter was scheduled to hear arguments on the request today.