Five of Hawaii Island’s 11 state legislators have taken campaign contributions from a Honolulu businessman who’s a cooperating government informant at the heart of a bribery scandal that took down two legislative leaders.
Former Senate Majority Leader J. Kalani English, a Maui Democrat, and former House Finance Committee Vice Chairman Ty Cullen, a central Oahu Democrat, pleaded guilty Tuesday in federal court to a felony charge of honest services wire fraud for accepting bribes in exchange for shaping legislation that would benefit a company involved in publicly financed cesspool conversion projects.
The businessman, identified only as “Person A” in court documents, has been verified by Honolulu media as Milton Choy, owner of H20 Process Systems LLC and Fluid Technologies Inc. and manager of the Honolulu office of Tyco Engineered Products & Services.
The two former lawmakers admitted to accepting envelopes of cash during meetings in Choy’s car and a restaurant restroom totalling $15,000 and $23,000 as well as Las Vegas hotel rooms, gambling chips and dinners.
Most of the five Big Island lawmakers who accepted legal campaign contributions from Choy said Tuesday they were giving them back or donating them to the state Campaign Spending Commission.
“I do not condone illegal actions that have recently occurred. In lieu of returning Milton Choy’s campaign contribution directly to him, I will be redirecting his donations to the Campaign Spending Commission,” said Senate Majority Leader Dru Kanuha, a Democrat representing Kona and Ka‘u. “Donations to my campaign would never influence my decisions. My community dictates my advocacy and my voting record would speak for itself.”
Kanuha’s campaign received $4,0000 from Choy between 2018 and 2020, according to campaign spending records.
Rep. Nicole Lowen, a Democrat representing Kailua-Kona, Holualoa, Kalaoa and Honokohaua, received a $1,000 campaign contribution from Choy in 2016. She’s sponsored legislation on cesspool conversion but it’s unrelated to the contribution, she said.
“It wasn’t a contribution that I solicited so I’ve actually never met with him or talked with him about anything,” Lowen said. “Yes, I’ve already mailed the check to return the donation.”
Rep. Chris Todd, a Democrat representing Hilo, Keaukaha, Pana’ewa and Waiakea, received $250 in 2018.
“I don’t believe I have ever met Milton Choy and I didn’t remember him donating to the campaign,” Todd said. “When I saw the donation, I immediately called the campaign spending commission to ask what the best way to return the donation was. Last week Friday, I mailed the amount to the CSC for their public election funding account.”
Sen. Lorraine Inouye, a Democrat representing Hilo, Hamakua, Kohala, Waimea, Waikoloa and Kona, received $3,550 between 2015 and 2017.
“I don’t know this person personally, he has not asked me for any legislation,” Inouye said. “We are giving our money to the Campaign Spending Commission.”
Rep. Greggor Ilagan, a Puna Democrat, received $2,000 in 2015, when he ran an unsuccessful campaign for state Senate. As a House member, he also sponsored a cesspool conversion bill last year but he said Tuesday it was unrelated.
“I didn’t know who he was,” Ilagan said, adding he’d held fundraiser that year on Oahu and that’s probably where the money came from.
He’s in the process of sending it to the Campaign Spending Commission, he said.
“It’s a terrible time to come into the Legislature; however I am going to continue to be who I am,” Ilagan said. “I held 12 town halls in December. I believe in transparency and I will make sure I will hold up my integrity through this process.”
Choy has donated almost $165,000 to state and local candidates since 2014, according to reports compiled by the Campaign Spending Commission, but no current Hawaii County elected officials received money.
Choy’s companies have received a reported $6 million in government contracts in the state, but again, very little of those came from Hawaii County.
H2O Process Systems LLC was paid $1,522.49 in 2014, and Fluid Technologies Inc. was paid $946.22, according to county Finance Director Deanna Sako. There were no other payments or contracts, she said.