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' ORIGINAL
KENJI M.PRICE #10523 FILED IN THE
United States Attorney UNITED STATES DISTRICT COURT
DISTRICT OF HAWAII
District of Hawaii
^ AUG 2 2 2013
MICHAEL F. ALBANESE #9421 at ^o'clock and_J[5^- M
SUE BEITIA, CLERK
Assistant U.S. Attorney
Room 6-100, PJICK Federal Building
300 Ala Moana Boulevard
SEALED
Honolulu, Hawaii 96850
BY ORDER OF THE COURT
Telephone:(808)541-2850
E-mail: michael.albanese@usdoj.goy
Attorneys for Plaintiff
UNITED STATES OF AMERICA
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF HAWAII
UNITED STATES OF AMERICA, CR. NO.
C R19 - 0011 4 fjQ
Plaintiff, INDICTMENT
vs. [18 U.S.C. §§ 371, 1343, 1957; 29
U.S.C. § 501(c)]
BRIAN AHAKUELO, (01)
MARILYN AHAKUEEO, (02)
JENNIFER ESTENCION
aka Jennifer Rivera, (03)
Defendants.
INDICTMENT
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The Grand Jury charges:
INTRODUCTORY ALLEGATIONS
At all times material to this Indictment, unless otherwise specified:
1. The International Brotherhood of Electrical Workers("IBEW") was a
labor organization of electrical workers located throughout the United States and
Canada. It was organized pursuant to the IBEW Constitution. Local 1260 was
chartered by the IBEW,and based in Honolulu, Hawaii. Local 1260 represented
approximately 3,000 members who were divided into nine units located in the
State of Hawaii and the Territory of Guam. The units were grouped primarily by
geographic location and employer.
2. Local 1260 ofthe IBEW was a labor organization engaged in an
industry affecting commerce within the meaning of Title 29, United States Code,
Sections 402(i) and 402(j)(also referred to herein as a "union"). Local 1260 was a
signatory to contracts with employers including utility companies, broadcast and
telecommunications companies, and construction companies.
3. Local 1260 members paid dues on a monthly basis, as required by the
IBEW Constitution and Local 1260 Bylaws. These payments were typically
withheld by employers from Local 1260 members' paychecks and remitted directly
to Local 1260 via electronic funds transfers.
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4. Local 1260's Executive Board consisted ofthe President, Vice
President, Recording Secretary, Treasurer, and nine members(one representative
from each ofthe nine units). All Executive Board officers and members were
elected by Local 1260's membership every three years.
5. Under the IBEW Constitution and Local 1260 Bylaws,the day-to-day
operation ofLocal 1260 was managed by a full-time employee designated as
Business Manager / Financial Secretary. The Business Manager / Financial
Secretary was elected by Local 1260 membership every three years. Under the
Local 1260 Bylaws,the Business Manager / Financial Secretary had sole authority
to appoint assistants, representatives, and clerical employees, who worked under
his direction, subject to his authority, and who could be removed by him at any
time.
DEFENDANTS
6. Defendant BRIAN AHAKUELO was elected to serve as Business
Manager / Financial Secretary ofLocal 1260 in June 2011. BRIAN AHAKUELO
was re-elected as Business Manager / Financial Secretary in 2014. He served in
that capacity until he was removed when the IBEW placed Local 1260 in
emergency trusteeship on or about May 6,2016.
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7. Defendant MARILYN AHAKUELO was employed by Local 1260
beginning in or about July 2011 through on or about May 6, 2016. MARILYN
AHAKUELO was the wife ofBRIAN AHAKUELO.
8. Defendant JENNIFER ESTENCION,also known as Jennifer Rivera,
was employed by Local 1260 beginning in or about August 2012 through on or
about May 6, 2016. JENNIFER ESTENCION was the sister-in-law ofBRIAN
AHAKUELO and the sister of MARILYN AHAKUELO.
COUNT 1
Conspiracy
(18U.S.C. §371)
9. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
10. From a precise earlier date unknown, but by at least June 2011, and
continuing through on or around May 2016, within the District of Hawaii and
elsewhere, BRIAN AHAKUELO,MARILYN AHAKUELO,and JENNIFER
ESTENCION,the defendants, did knowingly conspire with each other, and with
other unindicted co-conspirators known and unknown to the Grand Jury, to commit
offenses against the United States, namely, wire fraud in violation of Title 18,
United States Code, Section 1343, and embezzlement in violation of Title 29,
United States Code, Section 501(c).
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Objects ofthe Conspiracy
11. BRIAN AHAKUELO,MARILYN AHAKUELO,and JENNIFER
ESTENCION defrauded Local 1260 members by making false representations,
falsifying Local 1260 records, including falsifying the results ofthe January 2015
vote on Resolution No. 14-07 in order to get the membership to pay increased dues
and to increase the funds available for the defendants' illicit purposes, such as the
conversion ofLocal 1260 funds to their own purposes, all while concealing their
actions from the IBEW and the Local 1260 Executive Board and membership.
Manner and Means ofthe Consniracv
12. After BRIAN AHAKUELO's election as Business Manager /
Financial Secretary in June 2011,BRIAN AHAKUELO used his authority under
Local 1260 Bylaws to fill vacancies on the Executive Board with officers and
members who had no experience or were otherwise loyal to him. As a result,
BRIAN AHAKUELO gained autonomy and complete control over the finances of
Local 1260. BRIAN AHAKUELO used this authority to make decisions that
directly benefitted himself and his family members, including the hiring and
retention offamily members as Local 1260 employees,the payment of wages in
excess ofthose permitted by Local 1260 Bylaws, and the use ofLocal 1260 funds
to pay for personal travel with little or no official purpose.
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13. BRIAN AHAKUELO hired MARILYN AHAKUELO and
JENNIFER ESTENCION to work for Local 1260 after BRIAN AHAKUELO
became the Business Manager / Financial Secretary.
14. Several employees, including BRIAN AHAKUELO,MARILYN
AHAKUELO,and JENNIFER ESTENCION were assigned official credit cards
for Local 1260 purposes. BRIAN AHAKUELO assigned JENNIFER
ESTENCION to review the credit card charges ofLocal 1260 employees. In that
capacity, JENNIFER ESTENCION reviewed and approved expenditures by
BRIAN AHAKUELO,MARILYN AHAKUELO,and herselfthat had no
legitimate Local 1260 purpose.
15. After depleting Local 1260's surplus from over $700,000.00 in 2010
to a net deficit of over $700,000.00 in 2014,BRIAN AHAKUELO proposed
Resolution No. 14-07 to the Local 1260 membership in the latter part of2014.
Resolution No. 14-07, in relevant part, had the effect ofincreasing Local 1260
membership dues from an average scale of 1.5% to 3% of wages effective April 1,
2015, 3.5% effective April 1, 2017, and 4% effective April 1, 2019.
16. Because ofthe unpopularity ofthis resolution with Local 1260
membership,in January 2015,BRIAN AHAKUELO,MARILYN AHAKUELO,
and JENNIFER ESTENCION,and others, agreed to falsify the results ofthe vote
on Resolution No. 14-07 to ensure that the resolution passed. The defendants
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successfully falsified the election results in two ofthe nine bargaining units, which
resulted in the passage ofthe resolution and an increase ofLocal 1260 dues.
17. As a result ofthe falsified vote, Local 1260 enacted Resolution 14-07,
and Local 1260 employers began to withhold the higher dues amount from workers
pay checks. The increased amount was then transferred to Local 1260 on a
monthly basis via wire transfer. As a result of Resolution 14-07, from March 2015
to June 2016, Local 1260 collected $3,700,000.00 more than it would have under
the pre-existing dues structure.
Overt Acts
18. In furtherance ofthe conspiracy, and to effect the objects thereof, the
co-conspirators committed various overt acts in the District ofHawaii and
elsewhere, including the following:
a. On or about October 29,2014,BRIAN AHAKUELO requested
approval from Local 1260 Executive Board to present Resolution No. 14-07 for
membership vote.
b. On or about November 3, 2014, BRIAN AHAKUELO drafted
and mailed a letter to Local 1260 membership, informing them that Resolution No.
14-07 would be read at the December 2014 meetings of each unit, and voted upon
at the January 2015 meetings. The letter stated that the Local 1260 Executive
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Board,leadership team, and administrative staff strongly recommend the proposed
resolutions be adopted.
c. On or about January 16, 2015, Resolution 14-07 was read by
BRIAN AHAKUELO and voted upon by the members who attended the Unit 4
membership meeting. There were approximately six to eight members in
attendance,
d, MARILYN AHAKUELO falsified the minutes for the Unit 4
membership meeting. The falsified minutes stated that the results ofthe
Resolution 14-07 vote were 98 "yes" votes and 11 "no" votes, falsely stated that
the meeting had taken place on January 19, 2015 instead of January 16, 2015, and
contained false attendance records,
19, In late January 2015,BRIAN AHAKUELO,JENNIFER
ESTENCION,and other unindicted co-conspirators attended the membership
meeting for Unit 9 in Guam at which the vote on Resolution 14-07 took place,
20, On or about January 29,2015,BRIAN AHAKUELO,JENNIFER
ESTENCION,and several unindicted co-conspirators met in Guam prior to the
Unit 9 membership meeting, and prepared fake ballots with a high number of"yes"
votes,
21, On January 29,2015, after the Unit 9 vote had taken place,
JENNIFER ESTENCION and other unindicted co-conspirators, under the direction
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ofBRIAN AHAKUELO,substituted the fake ballots for the genuine ballots. The
fake ballots were then tallied to indicate that Resolution No. 14-07 passed by a
vote of293 "yes" to 32"no" votes.
22. In a letter dated January 31, 2015,BRIAN AHAKUELO submitted
nine amendments,including Resolution No. 14-07, for consideration by the IBEW
International Office. The letter falsely reported that Resolution 14-07 was voted
on by secret ballot in accordance with the Local 1260 Bylaws, when in fact he
knew that the vote results for two units were false.
23. On or about October 16, 2014, MARILYN AHAKUELO expended
Local 1260 funds for personal travel to Las Vegas, Nevada, coinciding with the
closing of a home purchase in Nevada.
24. On or about September 17, 2014,BRIAN AHAKUELO directed the
expenditure ofLocal 1260 funds to pay for personal travel to Virginia in or around
Thanksgiving 2014.
25. From on or about September 22,2014 through on or about December
22, 2014, BRIAN AHAKUELO and MARILYN AHAKUELO expended and
directed the expenditure ofLocal 1260 funds for personal travel to Virginia in or
around Christmas 2014 and New Year's Day 2015.
26. On or about April 15, 2014, BRIAN AHAKUELO and MARILYN
AHAKUELO expended and directed the expenditure of Local 1260 funds for
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personal travel to Nevada in or around Thanksgiving 2015, Christmas 2015, and
New Year's Day 2016.
27. From on or about March 26, 2016 through on or about May 6, 2016,
BRIAN AHAKUELO hired his son-in-law as "Training Coordinator" for a training
program that did not exist, and paid his son-in-law in excess of$29,000.00,
including an automobile allowance, for little or no legitimate work.
28. On or about April 19, 2016,BRIAN AHAKUELO directed that Local
1260 purchase MARILYN AHAKUELO's Toyota Tacoma, without prior
Executive Board authorization, a decision that personally benefited BRIAN
AHAKUELO and MARILYN AHAKUELO.
29. On or about April 22, 2016,BRIAN AHAKUELO directed the
expenditure of$597.00 ofLocal 1260 funds to pay for a personal restaurant bill.
All in violation of Title 18, United States Code, Section 371.
COUNTS 2 THROUGH 43
Wire Fraud
(18U.S.C. § 1343)
30. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
31. From a precise earlier date unknown, but by at least October 29, 2014,
and continuing through on or about April 29,2016, within the District ofHawaii
and elsewhere, BRIAN AHAKUELO,MARILYN AHAKUELO,and lENNIFER
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ESTENCION,the defendants, did knowingly devise and intend to devise a scheme
to defraud Local 1260, and to obtain money and property by means of materially
false and fraudulent pretenses, representations, promises, and material omissions.
Manner and Means ofthe Scheme to Defraud
32. The fraudulent scheme operated, in substance, in the following
manner:
a. In late 2014, BRIAN AHAKUELO presented Resolution No.
14-07 to Local 1260 membership, which proposed to increase Local 1260
membership dues from an average of 1.5% to 3% effective April 1, 2015,3.5%
effective April 1, 2017, and 4% effective April 1, 2019.
b. BRIAN AHAKUELO,and with the help of MARILYN
AHAKUELO and JENNIFER ESTENCION,falsified the results ofthe Local 1260
vote to pass the Resolution.
c. BRIAN AHAKUELO,and with the help of MARILYN
AHAKUELO and JENNIFER ESTENCION,created records falsely reporting the
number of votes, when in fact the vote totals included a number offalse ballots
prepared by BRIAN AHAKUELO,JENNIFER ESTENCION,and other
unindicted co-conspirators.
d. BRIAN AHAKUELO,and with the help of MARILYN
AHAKUELO and JENNIFER ESTENCION,falsely represented to the IBEW
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International Office that the vote on Resolution 14-07 was conducted in
accordance with the IBEW Constitution and Local 1260 Bylaws, when they knew
in fact that it was not.
e. BRIAN AHAKUELO transmitted and caused to be transmitted
information about the fraudulent membership dues increase to Local 1260
employers, including Maui Electric Company("MECO"),Hawaii Electric Light
Company("HELCO"),Hawaiian Electric Company("HECO"),and others. As a
consequence, each employer increased the amount of payroll withholdings for
Local 1260 membership dues from Local 1260 members.
f. The employers aggregated the payroll withholdings on a
monthly basis, and transmitted the withholdings to Local 1260 via electronic funds
transfer. Those funds went into an electric funds transfer account at First Hawaiian
Bank("FHB")with Account #...162.
33. On or about each ofthe dates set forth below, within the District of
Hawaii and elsewhere. Defendant BRIAN AHAKUELO,for the purpose of
executing the scheme described above, caused Local 1260 employers to make
monetary transfers of dues, in the approximate amounts listed below, which
transfers were made via wire communication in interstate commerce the signals
and sounds described below, with each such transmission constituting a separate
count ofthis Indictment:
12
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Date Descri ption of Transaction
03/20/2015 Wire Transfer from MECO to Local 1260
03/20/2015 Wire Transfer from HELCO to Local 1260
03/27/2015 Wire Transfer from HECO to Local 1260
04/24/2015 Wire Transfer from HECO to Local 1260
05/01/2015 Wire Transfer from MECO to Local 1260
05/01/2015 Wire Transfer from HELCO to Local 1260
05/22/2015 Wire Transfer from HECO to Local 1260
06/01/2015 Wire Transfer from MECO to Local 1260
06/01/2015 Wire Transfer from HELCO to Local 1260
06/19/2015 Wire Transfer from HECO to Local 1260
06/26/2015 Wire Transfer from MECO to Local 1260
06/26/2015 Wire Transfer from HELCO to Local 1260
07/24/2015 Wire Transfer from MECO to Local 1260
07/24/2015 Wire Transfer from HELCO to Local 1260
07/31/2015 Wire Transfer from HECO to Local 1260
08/24/2015 Wire Transfer from MECO to Local 1260
08/24/2015 Wire Transfer from HELCO to Local 1260
08/28/2015 Wire Transfer from HECO to Local 1260
09/18/2015 Wire Transfer from MECO to Local 1260
09/18/2015 Wire Transfer from HELCO to Local 1260
09/25/2015 Wire Transfer from HECO to Local 1260
10/23/2015 Wire Transfer from HECO to Local 1260
10/30/2015 Wire Transfer from HELCO to Local 1260
10/30/2015 Wire Transfer from MECO to Local 1260
11/20/2015 Wire Transfer from HECO to Local 1260
11/30/2015 Wire Transfer from HELCO to Local 1260
11/30/2015 Wire Transfer from MECO to Local 1260
12/28/2015 Wire Transfer from HELCO to Local 1260
12/28/2015 Wire Transfer from MECO to Local 1260
01/04/2016 Wire Transfer from HECO to Local 1260
01/22/2016 Wire Transfer from HELCO to Local 1260
01/22/2016 Wire Transfer from MECO to Local 1260
01/29/2016 Wire Transfer from HECO to Local 1260
02/22/2016 Wire Transfer from HELCO to Local 1260
02/22/2016 Wire Transfer from MECO to Local 1260
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02/26/2016 Wire Transfer from EDECO to Local 1260
03/28/2016 Wire Transfer from HECO to Local 1260
04/01/2016 Wire Transfer from HELCO to Local 1260
04/01/2016 Wire Transfer from MECO to Local 1260
04/22/2016 Wire Transfer from HECO to Local 1260
04/29/2016 Wire Transfer from HELCO to Local 1260
04/29/2016 Wire Transfer from MECO to Local 1260
All in violation of Title 18, United States Code, Sections 1343.
COUNTS 44 THROUGH 63
Money Laundering
(18U.S.C. § 1957)
34. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though frilly set forth herein.
35. On or about the dates set forth below, within the District of Hawaii,
and elsewhere, BRIAN AHAKULLO,the defendant, did knowingly engage and
attempt to engage in the following monetary transactions by, through or to a
financial institution, affecting interstate or foreign commerce, in criminally derived
property of a value greater than $10,000, that is the transfer of U.S. currency, in the
approximate amounts listed below, such property having been derived from a
specified unlawful activity, that is, wire fraud in violation of Title 18, United States
Code, Section 1343.
Count Date Description of Transaction Amount
44 04/01/2015 Transfer of Funds from FHB Acct# ...162 $409,360.21
to FHB Acct# ...374
~^5 05/01/2015 Transfer of Funds from FHB Acct# ...162 $308,802.14
to FHB Acct# ...374
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46 05/04/2015 Transfer of Funds from FHB Acct# ...162 $99,575.73
to FHB Acct# ...374
47 06/02/2015 Transfer ofFunds from FHB Acct# ...162 $103,945.85
to FHB Acct# ...374
48 06/02/2015 Transfer of Funds from FHB Acct# ...162 $261,525.66
toFHB Acct# ...374
49 07/01/2015 Transfer of Fimds from FHB Acct# ...162 $345,121.49
to FHB Acct# ...374
50 07/27/2015 Transfer ofFunds from FHB Acct# ...162 $182,463.07
to FHB Acct# ...374
51 08/03/2015 Transfer ofFunds from FHB Acct# ...162 $232,566.56
toFHB Acct# ...374
52 08/27/2015 Transfer ofFunds from FHB Acct# ...162 $105,204.44
toFHB Acct# ...374
53 09/01/2015 Transfer ofFunds from FHB Acct# ...162 $253,937.42
to FHB Acct# ...374
54 10/01/2015 Transfer ofFunds from FHB Acct# ...162 $329,174.70
to FHB Acct# ...374
55 11/02/2015 Transfer ofFunds from FHB Acct# ...162 $342,763.47
to FHB Acct# ...374
56 12/01/2015 Transfer ofFunds from FHB Acct# ...162 $334,338.63
to FHB Acct# ...374
57 01/04/2016 Transfer ofFunds from FHB Acct# ...162 $143,682.09
to FHB Acct# ...374
58 01/05/2016 Transfer ofFunds from FHB Acct# ...162 $227,813.25
to FHB Acct# ...374
59 02/01/2016 Transfer ofFunds from FHB Acct# ...162 $334,713.49
to FHB Acct# ...374
60 03/01/2016 Transfer ofFunds from FHB Acct# ...162 $351,787.75
to FHB Acct# ...374
61 04/01/2016 Transfer of Funds from FHB Acct# ...162 $240,735.43
toFHB Acct# ...374
62 04/05/2016 Transfer ofFunds from FHB Acct# ...162 $96,309.84
to FHB Acct# ...374
63 05/02/2016 Transfer ofFunds from FHB Acct# ...162 $348,924.77
to FHB Acct# ...374
All in violation of Title 18, United States Code, Section 957.
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COUNT 64
Embezzlement of Labor Union Assets
(29 U.S.C. § 501(c))
36. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
37. On or about September 17, 2014, within the District of Hawaii,
BRIAN AHAKUELO,the defendant, while an employee ofLocal 1260, a labor
organization engaged in an industry affecting commerce, did embezzle, steal, and
unlawfully and willfully abstract and convert to his own use(and the use of others)
the moneys,funds, securities, property, and other assets of said labor organization,
in the approximate amount of$1,718.65, in that BRIAN AHAKUELO used Local
1260 funds to pay for roimdtrip airfare to Virginia from mid-November through on
or about December 1, 2014, a trip for which there was no union purpose or benefit.
All in violation of Title 29, United States Code, Section 501(c).
COUNT 65
Embezzlement of Labor Union Assets
(29 U.S.C. § 501(c))
38. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
39. From on or about September 17,2014 through on or about December
22, 2014, within the District of Hawaii, BRIAN AHAKUELO and MARILYN
AHAKUELO,the defendants, while employees ofLocal 1260, a labor
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organization engaged in an industry affecting commerce, did embezzle, steal, and
unlawfully and willfully abstract and convert to their own use(and the use of
others)the moneys,funds, securities, property, and other assets of said labor
organization, in the approximate amount of$3,090.66,in that BRIAN
AHAKUELO and MARILYN AHAKUELO used Local 1260 funds to pay for
roundtrip airfare to Virginia from mid-December 2014 to on or about January 5,
2015, a trip for which there was no union purpose or benefit.
All in violation of Title 29, United States Code, Section 501(c).
COUNT 66
Embezzlement of Labor Union Assets
(29 U.S.C. § 501(c))
40. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
41. On or about October 16,2014, within the District of Hawaii,
MARILYN AHAKUELO,the defendant, while an employee ofLocal 1260, a
labor organization engaged in an industry affecting commerce, did embezzle, steal,
and unlawfully and willfully abstract and convert to her own use(and the use of
others)the moneys,funds, securities, property, and other assets of said labor
organization, in the approximate amount of$1,564.00, in that MARILYN
AHAKUELO used Local 1260 funds to pay for roundtrip airfare to Las Vegas,
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Nevada from on or about October 23, 2014 to October 28, 2014, a trip for which
there was no union purpose or benefit.
All in violation of Title 29, United States Code, Section 501(c).
COUNT 67
Embezzlement of Labor Union Assets
(29 U.S.C. § 501(c))
42. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
43. On or about May 22,2015, within the District ofHawaii, BRIAN
AHAKUELO and MARILYN AHAKUELO,the defendants, while employees of
Local 1260, a labor organization engaged in an industry affecting commerce, did
embezzle, steal, and unlawfully and willfully abstract and convert to their own use
(and the use of others)the moneys,funds, securities, property, and other assets of
said labor organization, in the approximate amount of$3,313.24,in that BRIAN
AHAKUELO and MARILYN AHAKUELO used Local 1260 funds to pay for
roundtrip airfare to Las Vegas, Nevada from on or about November 21, 2015
through on or about January 3, 2016, a trip for which there was no union purpose
or benefit.
All in violation of Title 29, United States Code, Section 501(c).
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COUNT 68
Embezzlement of Labor Union Assets
(29 U.S.C. § 501(c))
44. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
45. From on or about March 26, 2016 through on or about May 6, 2016,
within the District of Hawaii, BRIAN AHAKUELO,the defendant, while an
employee ofLocal 1260, a labor organization engaged in an industry affecting
commerce, did embezzle, steal, and unlawfully and willfully abstract and convert
to his own use(and the use of others)the moneys,funds, securities, property, and
other assets of said labor organization, in the approximate amount of$29,726.90,
in that BRIAN AHAKUELO authorized the payment of said Local 1260 funds as
salary to his son-in-law, who did little to no union work in exchange for such
payments.
All in violation of Title 29, United States Code, Section 501(c).
COUNT 69
Embezzlement of Labor Union Assets
(29 U.S.C. § 501(c))
46. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
47. On or about April 19, 2016, within the District of Hawaii, BRIAN
AHAKUELO,the defendant, while an employee ofLocal 1260, a labor
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organization engaged in an industry affecting commerce, did embezzle, steal, and
unlawfully and willfully abstract and convert to his own use(and the use of others)
the moneys,funds, securities, property, and other assets of said labor organization,
in the approximate amount of$24,594.27, in that BRIAN AHAKUELO authorized
the purchase of MARILYN AHAKUELO's Toyota Tacoma, using Local 1260
funds, without prior Executive Board authorization.
All in violation of Title 29, United States Code, Section 501(c).
COUNT 70
Embezzlement of Labor Union Assets
(29 U.S.C.§ 501(c))
48. Paragraphs 1 through 8 ofthis Indictment are re-alleged and
incorporated by reference as though fully set forth herein.
49. On or about April 22, 2016, within the District of Hawaii and
elsewhere, BRIAN AHAKUELO,the defendant, while an employee of Local
1260, a labor organization engaged in an industry affecting commerce, did
embezzle, steal, and unlawfully and willfully abstract and convert to his own use
(and the use of others)the moneys,funds, securities, property, and other assets of
said labor organization, in the approximate amount of$597.00, in that BRIAN
AHAKUELO directed that union funds be used to pay a restaurant bill, for which
there was no benefit to the union membership.
All in violation of Title 29, United States Code, Section 501(c).
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FIRST FORFEITURE NOTICE
1. The allegations set forth in all paragraphs of Counts 1 through 43 and
64 through 70 ofthis Indictment are hereby re-alleged and incorporated by
reference for the purpose of noticing forfeiture pursuant to Title 18, United States
Code, Section 981(a)(1)(C), and Title 28, United States Code, Section 2461(c).
2. The United States hereby gives notice to the defendants charged in
Counts 1 through 43 and 64 through 70 ofthis Indictment that, upon conviction of
the offenses charged in those counts, the government will seek forfeiture, in
accordance with Title 18, United States Code, Section 981(a)(1)(C), and Title 28,
United States Code, Section 2461(c), of any and all property, real or personal, that
constitutes or is derived from proceeds traceable to the violations of Title 18,
United States Code, Sections 371 and 1343, and Title 29, United States Code,
Section 501(c), as alleged in Counts 1 through 43 and 64 through 70 ofthis
Indictment.
3. If by any act or omission ofthe defendants, any ofthe property subject to
forfeiture described in paragraph 2 herein:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction ofthe court;
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d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be
divided without difficulty;
the United States of America will be entitled to the forfeiture ofsubstitute property
up to the value ofthe property described above in paragraph 2, pursuant to Title
21, United States Code, Section 853(p), as incorporated by Title 28, United States
Code, Section 2461(c).
SECOND FORFEITURE NOTICE
1. The allegations contained in all paragraphs of Counts 44 through 63 of
this Indictment are realleged and incorporated by reference for the purpose of
noticing forfeitures pursuant to Title 18, United States Code, Section 982.
2. The United States hereby gives notice to the defendants charged in
Counts 44 through 63 ofthis Indictment that, upon conviction ofthe offenses in
violation of Title 18, United States Code, Section 1957, charged in Counts 44
through 63 ofthe Indictment, the government will seek forfeiture, pursuant to Title
18, United States Code, Section 982(a)(1), of any and all property, real or personal,
involved in the offense and all property traceable to such property.
3. If by any act or omission ofthe defendants, any ofthe property subject to
forfeiture described in paragraph 2 herein:
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a. cannot be located upon the exercise ofdue diligence;
b. has been transferred or sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction ofthe court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be divided
without difficulty.
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Case 1:19-cr-00114-HG Document 1 Filed 08/22/19 Page 24 of 24 PageID #: 24
the United States of America will be entitled to forfeiture of substitute property up
to the value ofthe property described above in paragraph 2, pursuant to Title 21,
United States Code, Section 853(p), as incorporated by Title 18, United States
Code, Section 982(b)(1).
DATED: Honolulu, Hawaii, August 22 , 2019.
A TRUE BILL
/s/ Foreperson
FOREPERSON,GRAND JURY
|/KENJra.PRICE
United States Attorney
MICHAEL F. ALBANESE
Assistant U.S. Attorney
United States v. Brian Abakuelo et al.
Indictment
Cr. No.
C R 19-001 14 HG
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