The Sunshine Blog: A Former Governor’s Part In A Federal Fraud Trial. But Not The One You Think

The Sunshine Blog: A Former Governor’s Part In A Federal Fraud Trial. But Not The One You Think


Short takes, outtakes, our takes and other stuff you should know about public information, government accountability and ethical leadership in Hawaii.

Loose lips sink ships: The Sunshine Blog has been spending a lot of time in federal court recently, what with all the federal corruption prosecutions that have been going on. So The Blog was chilling in the hallway last week when who should come walking up but former Gov. David Ige.

It turns out Ige was there to testify in another federal criminal trial, this one involving alleged securities fraud by a guy named Curtiss Jackson who the feds say got people to invest millions of dollars in a semi-submersible vessel he would lower into the water to give tourists a semi-underwater adventure.

According to the federal prosecutors, among other things, Jackson falsely claimed to potential investors that he was good buddies with Ige and that Ige was a big supporter of Semisub One, as the boat was called.

So there was the former gov, hauled in to court to testify about his relationship with Jackson. There were many amusing moments, to be sure. At one point, at least one juror was having a hard time not laughing.

You won’t be surprised to hear that Ige was not familiar with Semisub or, really, even Jackson, for that matter.

Questioning turned to Ige’s 2014 inaugural ball which Jackson and his wife apparently attended along with thousands of others at the Hawaii Convention Center. People had their pictures taken with him and the prosecution admitted into evidence a photo of Ige posing with an unidentified man. (Hint: Jackson).

“I felt that was part of the job as long as time allowed,” Ige said. “Many people I take photos with I don’t really know.”

A court exhibit taken from a Facebook page. (U.S. District Court photo)

The prosecutor asked if Ige recalled speaking with the man about Semisub. He said no. The prosecutor asked if Ige knew his photo was used to promote the company. He said no. 

Jackson, who is representing himself in the case, cross-examined the former governor. 

Jackson asked if Ige remembered his inaugural ball. 

Ige said it was a “blur.”

Jackson asked if Ige recalled Jackson sat two tables away during that event. Ige said he did not recall. 

Do you recall dancing with my wife? Jackson asked. 

“I don’t recall dancing with your wife,” Ige responded. 

Jackson asked if Ige recalled being on his wife’s Facebook page. Ige said no. 

“I don’t really look at Facebook,” Ige said. “I did not put anything on Mrs. Jackson’s Facebook page.” 

Do you recall me and my wife at Gov. George Ariyoshi’s birthday party? Jackson asked. 

Ige said he didn’t even recall a birthday party for Ariyoshi at someone’s house. He later added he doesn’t really know where Ariyoshi lives.

“Are you seeing a doctor for memory problems?” Jackson asked. 

“Uh, no I’m not,” Ige replied. 

And so it went. It’s probably a good thing the former governor has a lot of time on his hands these days. 

News junkies will recall that the Semisub is that big boat with all the blue windows that was docked at Kewalo Basin for a while. So big that it made national news when Jackson tried to skedaddle on it — solo — in January just before he was supposed to appear in court on the initial fraud and conspiracy charges. The U.S. Marshals and the Coast Guard crew who chased him down weren’t so amused that he tried to navigate it all by himself in Hawaii waters.

The Semisub One in happier times at Kewalo Basin. (Hawaii News Now photo)

Californy is the place you ought to be: And speaking of governors, Gov. Josh Green was in Los Angeles over the weekend to attend the Milken Institute Global Conference. A press release from the administration said Green joined the conference “for critical discussions with thought leaders on topics such as health, community resilience, climate change, and global leadership.”

That could well be. But it appears to have attracted a star-studded attendance list.

Politico reported Sunday that the swanky gig, held at the  Beverly Hilton hotel in Los Angeles, was expected to feature David Beckham, Elon Musk, Bill Clinton, Usher, the queen of Jordan, the CEO of ExxonMobil, former British Prime Minister Theresa May, former U.S. House Speaker Paul Ryan and Saudi Arabia’s Minister of Investment Khalid A. Al-Falih, among other luminaries.

The conference was not just politics and business, either. “Dog lovers should pop into the Wellness Garden between 2 p.m. and 4 p.m. tomorrow where there’ll be a chance to hang out with some puppies,” Politico reported. “Free yoga classes are also offered each morning to nurture those zen levels.”

Mike Milken served time in prison for securities and tax reporting violations in the 1990s but has since evolved into a major philanthropist.

Green returns to Hawaii Thursday. Lt. Gov. Sylvia Luke and Attorney General Anne Lopez tag-teamed leading the state in his absence.

In other star-crossed news, here’s what the governor tweeted on Saturday.

Akina v. OHA: The Blog reported recently on how the Office of Hawaiian Affairs is considering supporting former Board of Trustees Chair Rowena Akana in her effort to get the Hawaii Supreme Court to agree that the Hawaii State Ethics Commission has no jurisdiction over the quasi-state agency.

Now, OHA Trustee Kelii Akina is saying he is the only board member opposing OHA’s legal action.

“I am concerned that the amicus brief will be perceived as an attempt by OHA to evade accountability to state ethics laws and oversight,” he said in a recent press release. “Courts have ruled that the Office of Hawaiian Affairs is a state agency whose leadership and employees are subject to the standards of conduct and behavior expected of all state personnel.”

Interesting conflict of interest: The Maui County Democratic Party approved a set of resolutions last month that includes one alleging a conflict of interest involving the CEO of the nonprofit Hawaii Community Foundation.

The resolution notes that the foundation received $190 million in donations from thousands of donors to support the victims of the Maui wildfires. The problem, the reso states, is that the CEO is also a member of the board of Hawaiian Electric Industries, the holding company for Hawaiian Electric, “whose alleged negligence led to a substantial portion of the catastrophic loss of life and destruction of Lahaina.”

Micah Kane with Gov. Josh Green at a press conference on Maui in January. (David Croxford/Civil Beat/2024)

The reso — which does not actually name the CEO directly but it’s Micah Kane — said the CEO was compensated $237,000 last year in cash and equity and also owns HEI stock valued at $750,000. Maui Dems want HCF and HEI to address what the party sees as “clear conflicts of interest” and to ensure that the distribution of the foundation’s Maui Strong Fund “is transparent, equitable, and not influenced by the financial interests of its executives, board members or other entities with exposure to the wildfires.”

In 2023 the Hawaii Community Foundation distributed $107.4 million in community grants.

Another lawmaker bails early: Maile Shimabukuro announced some time ago that she would not run again for her District 22 Senate seat (Ko Olina, Nanakuli, Maili, Waianae, Makaha, Makua). She even endorsed fellow Democrat Cedric Gates, a House member.

Now Shimabukuro has decided she’ll exit the Capitol for good May 31 “after much soul-searching.” That will give the governor the opportunity to pick her replacement — his sixth legislative selection in just 18 months in office.

Democratic Party officers will choose three names to send to the governor, who has 60 days to fill the vacancy. The Blog would not at all be surprised if the next senator is Gates, which would make him the incumbent in the Aug. 10 primary.

Off and running: Honolulu Prosecuting Attorney Steve Alm wants another four years in office. He made his reelection bid announcement Tuesday.

“There are incredible opportunities and projects we are working on to make Honolulu safer, so our work is not done,” he said.

With less than a month to go before the filing deadline for candidates, Alm is as yet unopposed. That’s quite a contrast with four years ago, when Alm faced a crowded primary and a runoff in the general election.





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