Former Maui Public Official and Honolulu Businessman Charged with Federal Bribery and Honest Services Fraud Offenses

Former Maui public official and Honolulu businessman charged with federal bribery and fraud offenses. Learn about the allegations, consequences, and the importance of preventing and combating corruption.

In recent developments, former Maui County public official Stewart Olani Stant and Honolulu businessman Milton Choy have been charged with federal bribery and honest services fraud offenses. The charges allege that Choy bribed Stant with cash, bank deposits, and trips to Las Vegas in exchange for lucrative sole source contracts from the Maui County Department of Environmental Management. The scheme is said to have taken place over a six-year period, with Stant allegedly accepting up to $2,000,000 in bribes and steering over $19 million in contracts to Choy’s company. If convicted, both defendants could face substantial prison sentences and fines. These charges mark another instance of public corruption that will be closely scrutinized.

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Former Maui Public Official and Honolulu Businessman Charged with Federal Bribery and Honest Services Fraud Offenses

In a recent development, a former Maui County public official and a Honolulu businessman have been charged with felony offenses related to a long-running bribery scheme. Stewart Olani Stant, the former public official, and Milton Choy, the businessman, are alleged to have engaged in bribery and fraud in order to secure lucrative sole source contracts from Maui County’s Department of Environmental Management. These charges were brought in two separate criminal Informations, which have been unsealed.

Stant, who served as the Director of Maui County’s Department of Environmental Management from December 2015 to December 2018, is accused of accepting bribes from Choy between October 2012 and December 2018. These bribes allegedly included cash, bank deposits, casino chips, travel benefits, and other gifts, amounting to a total of up to $2,000,000. In exchange for these bribes, Stant is alleged to have agreed, in his official capacity, to steer and award over $19 million in sole-source contracts and purchase orders to Choy’s company, H2O Processes, LLC.

The charges against Stant include conspiracy to commit honest services wire fraud, as well as depriving the citizens of Maui County of his honest and conflict-free services as a public official. Stant could face a sentence of up to 20 years imprisonment and a fine of up to $250,000 if convicted.

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Choy, on the other hand, is charged with corruptly bribing Stant over the same six-year period mentioned in the Stant Information. According to Choy’s Information, his bribery of Stant violated federal law due to the value of the contracts exceeding $5,000 and Maui County receiving more than $10,000 in federal funding each year during the bribery scheme. If convicted, Choy could face a sentence of up to 10 years imprisonment and a fine of up to $250,000.

It is important to note that the charges brought against Stant and Choy are merely allegations, and both defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. The investigation in this case was conducted by the Federal Bureau of Investigation, and the prosecution is being handled by Assistant U.S. Attorneys Ken Sorenson, Micah Smith, and Michael Albanese of the District of Hawaii.

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Overview of the Bribery and Fraud Offenses

Bribery and fraud offenses are serious crimes that undermine the integrity of public institutions and erode public trust. In this case, the allegations suggest a long-running bribery scheme involving a public official and a private businessman. The charges against the defendants include conspiracy to commit honest services wire fraud, as well as bribery offenses.

Honest services wire fraud refers to the deprivation of honest and conflict-free services from a public official through fraudulent means. In this case, the allegations indicate that Stant, the former Maui public official, accepted bribes in exchange for steering and awarding contracts to Choy’s company. By doing so, Stant is accused of corruptly failing to disclose the bribes and depriving the citizens of Maui County of their right to his unbiased services. This form of fraud undermines the public’s trust in the government and compromises the fair and transparent allocation of public resources.

Bribery, on the other hand, involves the giving or receiving of something of value with the intent to influence the actions or decisions of a public official in their official capacity. In this case, Choy is alleged to have bribed Stant with cash, bank deposits, and other benefits in order to secure sole-source contracts from Maui County’s Department of Environmental Management. The allegations suggest that these bribes were given to gain an unfair advantage in the procurement process, bypassing fair competition and compromising the integrity of the system.

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Consequences of Bribery and Fraud

Bribery and fraud offenses are taken very seriously by law enforcement agencies and the justice system. If convicted, both Stant and Choy could face significant penalties, including imprisonment and substantial fines. The maximum sentences for these offenses reflect the severity of the crimes and the need to deter others from engaging in similar corrupt practices.

The potential sentence for Stant, if convicted, is up to 20 years imprisonment and a fine of up to $250,000. Choy, if convicted, could face up to 10 years imprisonment and a fine of up to $250,000. These penalties serve as a deterrent to other individuals who may be tempted to engage in bribery and fraud.

It is important to note that these penalties are not only meant to punish the individuals involved but also to send a strong message that corruption will not be tolerated. By holding public officials and private individuals accountable for their actions, the justice system aims to protect the integrity of governmental institutions and ensure that public resources are allocated fairly and transparently.

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The Role of Law Enforcement and Prosecution

The investigation in this case was conducted by the Federal Bureau of Investigation (FBI), which is responsible for enforcing federal laws related to public corruption and white-collar crimes. The FBI plays a crucial role in uncovering and investigating allegations of bribery and fraud, working tirelessly to collect evidence and build a strong case against those involved.

The prosecution of Stant and Choy is being handled by Assistant U.S. Attorneys Ken Sorenson, Micah Smith, and Michael Albanese of the District of Hawaii. Prosecutors play an essential role in guiding the case through the criminal justice system, presenting the evidence to the court, and seeking justice on behalf of the public.

Prosecuting bribery and fraud offenses requires a comprehensive understanding of the law, as well as the ability to present a compelling case to the jury. The work of prosecutors is crucial in holding individuals accountable for their actions and ensuring that justice is served.

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Impact of Bribery and Fraud on Public Institutions

Bribery and fraud offenses have a significant impact on public institutions and the communities they serve. When public officials engage in corrupt practices, it erodes public trust and undermines the legitimacy of governmental institutions. It creates an unfair playing field where access to public resources is determined by personal connections and bribes, rather than merit and fairness.

In this case, the allegations suggest that Stant, as a public official, abused his position of power by accepting bribes and awarding contracts to Choy’s company. This not only deprived the citizens of Maui County of their right to fair and transparent procurement processes, but it also undermined the credibility of the Department of Environmental Management.

The public’s trust in government and public officials is essential for the effective functioning of democratic societies. When that trust is compromised, it can lead to disillusionment, cynicism, and a loss of confidence in the public sector. Combating bribery and fraud is crucial in maintaining the integrity and legitimacy of public institutions.

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Preventing and Combating Bribery and Fraud

Preventing and combating bribery and fraud requires a multi-faceted approach involving various stakeholders, including law enforcement agencies, government institutions, and the public. Some key strategies in the fight against corruption include:

  1. Strong Anti-Corruption Laws: Governments need to have comprehensive and robust anti-corruption laws that clearly define offenses, establish strict penalties, and provide mechanisms for reporting and investigating corruption allegations.

  2. Enhanced Transparency and Accountability: Promoting transparency and accountability in government operations can help deter corruption. Measures such as open procurement processes, financial disclosures for public officials, and whistleblower protection can increase accountability and make it more challenging for corrupt practices to go unnoticed.

  3. Law Enforcement and Prosecution: Dedicated law enforcement agencies, like the FBI, play a vital role in investigating corruption allegations and bringing perpetrators to justice. Prosecutors with expertise in white-collar crimes can effectively present evidence in court and seek appropriate penalties for the offenders.

  4. Public Education and Awareness: Raising awareness about the dangers and consequences of bribery and fraud can help create a culture that rejects corruption. Education campaigns, public forums, and community engagement can empower individuals to report corruption and act ethically.

  5. International Cooperation: Given that corruption knows no borders, international cooperation is crucial in investigating and prosecuting corruption cases. Sharing best practices, information, and resources can strengthen the global fight against bribery and fraud.

By implementing these strategies and working collaboratively, governments and society can take significant steps towards preventing and combating bribery and fraud, thereby safeguarding public institutions and ensuring a fair and just society.

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Lessons Learned from the Case

The case involving the former Maui public official and the Honolulu businessman provides valuable lessons for both governmental institutions and the public at large.

For governmental institutions, it highlights the importance of robust internal controls, ethical guidelines, and transparency in procurement processes. Regular audits, clear policies, and mandatory reporting of potential conflicts of interest can help detect and prevent corrupt practices. In addition, strong whistleblower protection mechanisms and channels for reporting suspected corruption are essential for maintaining an environment of accountability.

For the public, the case underscores the need for active engagement and vigilance in combating corruption. Citizens play a crucial role in holding public officials accountable and reporting any suspected corrupt activities. By staying informed, participating in civic processes, and reporting corruption, individuals can contribute to the integrity of public institutions and help build a more transparent and accountable society.

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Conclusion

The charges brought against the former Maui public official and the Honolulu businessman serve as a reminder of the importance of integrity and accountability in public institutions. Bribery and fraud offenses undermine the fairness and transparency of the procurement process, erode public trust, and compromise the effective functioning of democratic societies. Preventing and combating corruption requires a collaborative effort involving law enforcement agencies, government institutions, and the public.

By implementing strong anti-corruption laws, enhancing transparency and accountability, and promoting public education and awareness, societies can take significant steps towards preventing and combating bribery and fraud. The case discussed in this article provides valuable lessons for governmental institutions and the public, highlighting the importance of robust internal controls, ethical guidelines, and active civic participation.

As the investigation and prosecution of the former Maui public official and the Honolulu businessman move forward, it is crucial for the justice system to ensure a fair and impartial trial. The penalties for these offenses reflect the severity of the crimes and send a strong message that corruption will not be tolerated. By holding individuals accountable for their actions, the justice system can help restore public trust and safeguard the integrity of public institutions.