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Ex-Hawaii County housing official pleads guilty to taking $2M in kickbacks

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Ex-Hawaii County housing official pleads guilty to taking M in kickbacks


HONOLULU (HawaiiNewsNow) – A former Hawaii county housing official pleaded responsible Monday to fraud after taking almost $2 million in kickbacks for approving inexpensive housing credit.

Alan Scott Rudo, 55, pleaded responsible to conspiracy to commit trustworthy companies mail fraud.

“I used my place on the county to affect inexpensive housing builders,” mentioned Rudo, in federal courtroom.

Hawaii County Mayor Mitch Roth mentioned he’s been shocked by the allegations. He additionally mentioned this can be a case of 1 dangerous apple in county authorities.

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“I believe quite a lot of the folks within the county that had been working with the federal investigators didn’t even understand how deep it went,” Roth mentioned.

Rudo labored as a housing specialist for the Workplace of Housing and Group Improvement from 2006 to 2018. The crime occurred from 2014 to 2021.

Court docket paperwork mentioned Rudo was answerable for reviewing and recommending which builders obtain inexpensive housing credit.

Rudo operated three inexpensive housing LLCs to promote land and housing credit to 3 unidentified co-conspirators. Sources say Rudo is probably going cooperating in opposition to the opposite co-conspirators.

“It was one among our county staff that was reviewing these offers and noticed that one thing was not proper and so they really contacted the federal investigators that began this investigation,” mentioned Roth.

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Rick Cassiday, housing finance skilled, mentioned Rudo “profited by taking his data of what inexpensive housing credit are and realizing there’s a requirement from respectable housing builders that they’d pay for it.”

He added, “He most likely went to them and mentioned, You guys need a challenge going? You need market? Let me enable you to do it by promoting you these credit score and you may resell it. That’s what they did.”

Rudo faces a most 20 years in jail and a $250,000 fantastic.

Restitution is to be decided and all offered land is to be forfeited again to the county.

“What occurs with one thing like this, it could diminish the quantity of inexpensive housing models in favor of a market unit and so we’re actually making an attempt to guarantee that we’ve that skill to construct inexpensive homes that our native households can elevate their households in,” mentioned Roth.

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Rudo is scheduled to be sentenced in October.

Copyright 2022 Hawaii Information Now. All rights reserved.



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Hawaii

First Alert Forecast: Lighter trades may lead to isolated afternoon downpours

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First Alert Forecast: Lighter trades may lead to isolated afternoon downpours


Light to moderate trade winds will continue to bring some showers for windward areas through the weekend. But there’s a First Alert as those winds will be light enough to allow afternoon sea breezes to blow over sheltered leeward sections. At the same time, an upper level disturbance will increase the chance for pop-up downpours and isolated thunderstorms late tonight into Sunday.

The chance for some rumbles of thunder will begin with Kauai and surrounding waters later in the day, Oahu tonight and the rest of the island chain Sunday. It will be difficult to say exactly where the heaviest rain will fall, but they will favor leeward areas. Basically, if you see dark clouds forming, there’s that higher chance for heavier rain.

Download HNN’s weather app for everything you need to plan your day.(Hawaii News Now)

Surf will be small Saturday but we are tracking some higher waves for Sunday. A shoft-lived small medium-period northwest swell will boost waves near head-high levels Sunday. A moderate long-period south swell will peak Sunday with the potential for some sets near the 10-foot high surf advisory level. You’ll get the First Alert here as we get more swell data.

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Hawaii-grown flowers in the spotlight: New variety of anthurium presented at event

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Hawaii-grown flowers in the spotlight: New variety of anthurium presented at event






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Hawaii hotel strikers seek unemployment benefits with no guarantee of getting those payments

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Hawaii hotel strikers seek unemployment benefits with no guarantee of getting those payments


HONOLULU (HawaiiNewsNow) – While workers at the Hilton Hawaiian Village fight for better wages and a bigger workforce, they are also heading into another fight — for unemployment benefits.

They could be eligible, but maybe not, if they do too much damage to the hotel’s income.

At the picket line at the Kalia Road entrance to the Hilton Hawaiian Village, like his colleagues, 9-year bellman Gerritt Vincent filed for unemployment but may not know for years if he will get paid.

“They told us we shouldn’t really expect much, but just to apply because you know, we’re worth it,” Vincent said.

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Vincent says with no money coming in, unemployment payments would be helpful.

“I told my kids, ‘We’re sorry. We’re not going to go to McDonald’s. I told my wife, ‘Sorry, we can’t go to Target for next few days, we’re going to have to eat what we have at the house,’” he said.

Cade Watanabe, UNITE Local 5 financial secretary-treasurer, said, “We’re telling all of our members not to depend on it, not to expect it.”

That’s because it depends on how much the strike impacts Hilton’s bottom line.

Under Hawaii law and court rulings, if a strike has little or no impact on operations, workers are eligible for unemployment benefits. If the company loses 20 to 30% or more of its revenue, the workers are not eligible.

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Even experts, like state House Labor Committee Chair Scot Matayoshi, can find it confusing.

“It’s honestly kind of counterintuitive to me, too,” he said.

It seems backward because strikes are designed to damage and even shut down the employer, but if the union succeeds in that, they don’t get unemployment.

Matayoshi says the law seems structured as a compromise, supporting striking workers without disabling their employers.

“If the strike is to such an extent that the whole business gets shut down, especially a crucial business, like a hospital, then unemployment benefits are withheld as perhaps incentive not to do that,” he said.

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But it also creates another conflict between owners and workers. Employers will fight the unemployment applications, by offering the state Labor Department proof of business disruption severe enough for the state to deny the benefits,

“That’s something that will take a lot of time, ” Watanabe said. “That also will require the employer to share their financials.”

Financials the union will challenge on behalf of its workers, in disputes that can go on for years.

And every dispute is unique.

For example, nurses who were locked out from Kapiolani Hospital, didn’t leave voluntarily and the hospital still operated. But the Labor Department says the nurses’ eligibility is still under review.

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While the law confusion seems to require change to the law, even with all the power labor has in the state, unions fear that by opening up the labor laws at the legislature could lead to unexpected negative consequences.



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