letters of support for albert hee
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The Honorable Susan Oki Mollway
Chief Judge
United Stated District Court
300 Ala Moana Blvd. ·
Honolulu Hawaii 96850-0338
Dear Judge Moll way:
September 11 2015
My
name is Torkel Patterson. I am a legal resident ofHawaii but am currently
living in Tokyo where I am a director Central Japan Railway a publically
listed company in Tokyo. I am also on the Board
of
Governors ofPacific
Forum CSIS a Honolulu based foreign policy institute. I understand that my
U.S. Naval Academy roommate
AI
Hee is being sentenced for a tax crime.
And it is on this matter that I am writing to you to share my appreciation ofAI
Hee s character and his contribution to society and to seek consideration
of
leniency n his sentencing.
I first met AI on July 6
\ 1972 when we were both I believe 7 years old. He
has been my best friend every since that date. On that day we were sworn in to
support and defend the Constitution of the United States and began our life as
Naval Academy Midshipmen and I began my friendship with the man who
will be appearing before you for sentencing. I know that AI did not take this
swearing-in lightly. His father had served in the Army from Hawaii and was
surprised when his son decided to go the Naval Academy. AI wanted to serve
his country and make his father proud ofhim.
Having grown up in Southern California I was unprepared for what I saw from
that first day at the Academy: Prejudice. I saw it towards the African
Americans and I saw it towards the Asian Americans. I know that AI felt it and
that it bothered him but he made friends easily and was a natural leader; soon
it was apparent that
AI
was going to be there to stay and there would be no
bullying him out of the place. AI was very intelligent but fun loving and had a
passion for current events. When I asked him why he was watching TV every
EXHIDIT
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night while I and others were studying, he said it was because there was a
senator from Hawaii who was participating in an investigation
of
the President.
At
that time I had no idea who Senator Inouye was, but I knew that AI admired
him and saw his cool, yet strong, demeanor as a role model.
Although AI was not Mormon, he was taken in by a Mormon family with
Hawaiian roots that frequently hosted him on the weekends. One weekend
AI
recruited me, and others, to work
as
temps for a moving company
in
order to
move a library; we had no idea why, we just did it because AI asked. I found
out years later that the money we earned which we never expected) was
donated so that one
of
the children
of
his host family could go on her church
mission abroad.
AI
is quite generous
of
spirit and purse. I have always known him to be ready
to help friends in need; he would do anything possible to help a friend, and he
would do so with a big-brotherliness that was sincere and long remembered by
the many who have sought his counsel and support. My wife has frequently
confided in AI, as have my children; I have no idea what they talked about as
AI is good at keeping confidences, but I know that he has helped them.
AI
is a loving husband, father and grandfather. I have on numerous occasions
watched him care for his children when they were babies, and I have seen him
care for his grandchildren. At frequent times he is the principle care giver. His
support is not one of ust watching part time; AI has cared and cares for the
children as if he is a mother, not a father. It
is
amazing, really, to seem him
with the babies. There isn t a more dedicated or loving caregiver. It was the
same when he visited his mother in the hospital when she had multiple
amputations. AI was there all night, almost every night, to be with her in her
final months, weeks, days and hours.
AI has a special relationship with his father, whom he takes every weekend to
work with him at his office park.
Mr
Hee the father), lives with and is cared
for by
Al s
son, who has been taught compassion and responsibility by looking
after
Mr
Hee.
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When one of
Al s
friends was lost at sea while boating with his wife, AI took
care ofhis grown son and helped him through the tragedy. The son has
repeatedly told me how much AI s advice has helped him get sorted since the
incident.
AI has spoken to me frequently about the need to help Native Hawaiians. His
commitment to them is real; he employs them whenever possible and his
business models are based on providing better service at the cheapest possible
price to the Hawaiian community. While others talk, AI does. He has been a
frequent supporter ofHawaiian concerns, from King Kamehameha Schools to
businesses that employ Hawaiians. One example was the crew that did the
remodeling
of
his home in Kailua. Even though there were more efficient
crews available, AI would hang with them and every night come home early to
talk story, feed them poke and provide encouragement.
Sandwich Isles Communications has been one of he largest employers of
Native Hawaiians in the state providing state
of
the art telecommunications
services
to
Hawaiian Homelands. Before that AI tried to bring new technology
and capacity to end brownouts that were occurring on Hawaii. His business
model was based on utilizing Hawaiian Homelands and hiring Hawaiians. He
was told by lawyers
of
the incumbent utility that
if
he agreed to build only one
power plant then they would allow it. Ifnot they would tie him up with a legal
fight indefinitely. AI would not agree to this condition; but unfortunately was
unable to overcome their efforts to stop him.
The point
of
these examples
is
that I has been committed to improving the
livelihood
of
his community (Native Hawaiians) for most
of
his working life.
Everyone who knows I knows that this was his motivation for what he tried
to do. He always takes very good care
of
his employees and they are extremely
loyal and committed to their work.
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While recognizing and respecting that AI was convicted by a jury
of
his peers
of criminal tax evasion, I
ah
shocked to consider AI a felon and a criminal. AI
has always been loyal to the government and to the rules
of
the state. He sought
to play within the rules of society as he understood them to be enforced; when I
read the indictment against Al.in the paper I was taken aback. Having worked
in Washington DC for much of my life in and out of government, and knowing
AI as well as I do, I could not ever envision that he would act in an
intentionally criminal manner. As he
is
my best friend, I know him very well.
He is not, in his heart, a criminal.
I was with AI and his wife, children and baby grandchildren within an hour of
the jury reporting its conviction. I can tell you without exaggeration that they
too were shocked and devastated as individuals and as a family by the news.
However what impressed me most was the love I saw expressed to each other
by siblings, and by the parents to the children. And nothing interrupted the
sweet way in which AI cared for the grandchildren, holding them and feeding
them and comforting them amidst this moment of personal and family anguish.
AI thinks strategically and is quite practical. I m sure as he faces the real
possibility
of
incarceration, he is taking the necessary steps to care for his
family and to ensure that his employees can continue to execute his vision for
the State. Having said this however, I know that it will have a definite impact
on them as
he is the guiding light
of
both his family and his business. In so
many ways he is the soul
of
Sandwich Isles, as such his not being there
as
an
everyday presence will have a negative impact on the direction and execution
of
the company and the cohesiveness
of
his family, not to mention on the
affection and care he directly bestows, in the tenderest of ways, on his
grandchildren.
Al s
health has never been good. He has which prevented him
from continuing his career in the Navy and which has required him to now
everyday
of
his life.
Additionally he has had to slow down considerably since
though you wouldn t know it unless you know him well. I can only imagine
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Gordon
C
O'Neill
September 11, 2015
The Honorable
Susan
Oki Mollway
Chief Judge
United Stated District Court
300 Ala Moana Blvd.
Honolulu, Hawaii 96850-0338
Dear Judge Mollway;
My name
is
Gordon C O'Neill and I
am
writing on behalf of my friend Albert
Hee
I am a retired United
States Marine Corps Colonel. In 2006, after thirty years of active service I joined the Potomac Institute
for
Policy Studies in Arlington, Virginia. I am currently
the
Director
of
the inst itute's Center
for
Emerging
Threats
and
Opportunities which provides research and analytical support to the Futures Directorate of
the Marine Corps Combat Development Command in Quantico, Virginia. I am aware that Albert will
soon appear before you to
be
sentenced for a tax crime of which
he
was convicted in your court. I have
known Albert since July of 1972 when we entered the United States Naval Academy.
We
were squad
mates during
the
challenging period
of
military indoctrination commonly referred
to as
Plebe
Summer''. Over the following
four
years at the Academy, Albert and I formed a close and lasting
friendship that
has
continued for forty three years.
As
a Midshipman,
lbert
was
thoughtful, energetic
and trustworthy
beyond a doubt. During periods
of
shared adversity, especially during
our
first year, his quick
wit
and affable personality helped many
of
his
classmates cope with the pressures of strict mil itary discipline and a rigorous academic environment.
Always quick
to
grasp
the
essence of newly introduced concepts
in
the classroom, Albert was also very
generous with his time and willing to assist those who were having difficulties, whether it was with
Calculus, Chemistry,
or just
a tough day in general.
He
helped me personally on at least one occasion
when I was questioning why I was at the Academy
and whether or not
I wanted
to
stay.
His
thoughtful
insight and friendship helped me
to see
the larger picture and stay the course
to
graduation.
After graduation from
the
Academy, Alber t served his nation honorably
as
a Navy Supply Officer.
In
this
capacity
he
was
entrusted
with the
leadership, professional development,
and
well-being
of
many
enlisted sailors under his charge.
He
was also accountable for high value supply accounts that required
expert management by an officer of great initiative and the utmost integrity. fter fulfi lling his active
duty
obligation
to
the Navy,
lbert
returned
to
his beloved Hawaii
to
strike
out
on his own.
While traveling to and from various overseas assignments or while embarked upon Navy amphibious
ships, I had the
opportunity to
visit Albert and his wife, Wendy on numerous occasions of over
the
years.
Just
as he
was during our time at the Academy, Albert
has
always been very generous with his time and
hospitality.
On
occasions when I only had a brief
or
unplanned layover, I would call
AI
and
he
would
drop whatever
he
was doing
to
pick
me
up and welcome me
to
Oahu. When I visited
with
my family
and
during my one assignment at
the
Pacific Command Headquarters, the Hee's always welcomed
us
in
their
home with much Aloha. When my oldest son needed a summer job, Albe.rt employed him on the
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Waimana proper ty in Mililani. This gave him
the
opportunity
to
earn some college money and learn
about honest and tough manual labor.
As Albert built his business and entered into various enterprises,
he
had a vision
to
bring reliable
telecommunicat ions services
to
the Hawaiian Homelands.
He
has followed this vision and
it
has been
his passion for over twenty years. What strikes me most about Alber t
is
not only his energy and
ingenuity in accomplishing his goals but his total commitment
to
the success and well-being of his
employees and colleagues. I have visited him at the office and in the field and have observed the high
regard in which
he
is held by all of his associates.
It
is a level of esteem that is usually reserved for
leaders of the utmost effectiveness, compassion, and honesty.
I was surprised and saddened to
Jearn
of the investigation into Albert s tax filings and his subsequent
indic tment and conviction on charges that
I believe are completely out
of
character
for
my friend
of
over
forty years.
In
my observation and opinion, Albert Hee is not a man
who
would knowingly or willingly
violate the law. I know that this whole process
has
been
an
ordeal that has taken a heavy toll on
his
entire family and may have lasting effects well into the future. Moreover, those that rely upon
AI
for
their employment are facedwith a great deal of uncertainty about their own future security. Please
· consider
that
during this very trying period in his life Albert has continued
to
ensure the integrity·of
telecommunicat ions services
to
Hawaiian Homelands and
has
continued
to
look
after the
interests of his
employees at Waimana Enterprises.
I ask that you consider leniency in sentencing Albert Hee He is a man who has honorably served his
nation
in
uniform and continued
to
do
so
throughout his professional and private life.
Not
only would
incarceration adversely affect his family and employees but
it
would deny him
the opportunity to
continue serving his community, particularly
the
Hawaiian Homelands.
Please
consider financial
restitution, probation and community service in the best interest of ustice. I humbly thank the court for
considering my statement while deliberating on Albert s fate.
Respectfully,
ffi cd/J
Gordon C O Neill
Colonel,
USMC
(Ret.)
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The Honorable Susan Oki Mollway
Chief Judge
United States District Court
300
Ala Moana Blvd.
Honolulu, Hawai'i
96850 0338
Aloha Judge Mollway
September 11 2015
My name
is
Heather Giugni.
Albert and Wendy Hee have been lifelong friends and I am writing
to
you in that
capacity. We all attended Kamehameha Schools together and ended up in higher
institutions on the
East Coast.
I
don t
recall when I first introduced Albert the plebe to
my parents
but
I
can
tell you they loved him. My mother - who was fond of putting
anyone
to
work who appeared at the
front door-
noticed that this young man did not
bolt when
asked
to
clean the gutters of the house. In fact he frequently visited them
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while attending the Naval Academy
in
Annapolis, helping them in any way possible.
He
was
generous
and
responsive and
as
they grew old
and
fragile,
his
caring
for
them only
increased. At the
same
time he
also
grew
close to
my youngest sister who
has
polio
so
you
see
I
am
very grateful
for
his friendship
and his
genuine care
of
my family
and
people in general. This
is
a loving Albert that I know - supportive of family, friends
and
community.
I barely know Albert the Businessman. I
am
obviously aware that he
has been
a
successful entrepreneur who, against all odds, succeeded in building an institution from
an idea certainly no
easy
task
in our
State.
nd
I
also
know of the
area of
interest
he
has pursued but unti l recently I knew nothing of his business practices.
While I am choosing not to share my opinion regarding those practices including tax
crime which I learned about in the news, I want
to
take this opportunity
to ask you to
ple se take his family into account when you consider his sentencing and choose
leniency
Thank you sincerely
for
considering my request.
Humbly and in gratitude,
Heather Haunani Giugni
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September 15, 2 015
The Honorable Susan Oki Mollway
Chief Judge
United States District Court
300
Ala
Moana Boulevard
Honoltllu, HJ 96850
Dear Judge Mollway,
My name is
Gina P Giugni and I have known Albert Hee for
about
40 years. Albert was a
classmate of my sister Heather
at
Kamehameha Schools, but he really
entered
my
life
when
he
was a plebe
at
the United States Naval Academy.
Over the next 4 years .Albert
spent
many weekends at our house, playing chess with
my
father,
helping
my mother
with her endless list of chores, plumbing wiring, etc.
He
was a hard worker
that
never
shied away from work.
He
became. the son
my
parents never
had.
When we moved
he corralled 3 of his academy friends (with and moved our household 50 miles away. I
had him install a cassette player into my car and I remember complaining because he was
takingall day, but he was a perfectionist and when he came up from under the dashboard he
said "Gina, a job isn't worth doing u.nless it is clone right".
Albert gradu;t ted, start.ed on his career, visited with
my
parents when he c;tme to town and my
father
met
him when
he
was in Hawaii. Their relationship never stopped. About
12
years ago
when
my
f11ther's
health became
an issue Albert called me. I
hadn t
spoken with him for about
20 years and he said "It's your long lost brother Albert".
He
reached out to me because he was
concerned with
my
father's health and had some suggestions
of
what I might wa nt to do.
During the years
of
declining health
he
looked afte_r rny father, when
my dad
was in Hawaii,
Albert's. office was my father's have n
to
take a nap; play a game of chess, and he would even
rub mydcrd's feet. He would try
to
protect
my
father from the sharKs that were circling, the
ones who could smell
the
blood
in
the
water, wanting
to
take
mY
father's position,
the
man
who had the Senators ear, the man who was the Senators .closest confidant, the only man the
Senator could really just be Dan with.
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:;
F
;
When my·dad passed away, he came up for
my
dad's memorial. He. helped
us.
with
the
funeral
in Hawaii, in particular he arranged for a military salute because we were not able to get
that
done. He was there for
my
sisters and
my
mother and he spoke at
his
burial.
Twelve months later we were in the same situation with my mother, he rushed to her bedside,
but missed her by hours And once again, he spoke
at
her funeral.
·
remained friends, whenever I get horne we get together for a meal and when.he's on the
east coast I go and
meet
him.
He
has always made himselfavailable to me, always just a phone
call away.
On
Dec.ember 18, 2014 I called Albert; I was having trouble getting leis shipped
to
the
east
coast
for my daughter 's wedding on December 20
1
h. ·He said, I'll try myb.est . Boxes of beautiful
leis arrived themorning of the wedding. It wasn't until months.later that I discovered he had
been indicted the day before
my
call.
He
never said a word, never let on what he W< S going
through,. h
wanted
us to have a memorable day.
My parents loved Albert like a son and I know he loved them; he even made them godparents
to his oldest daughter (Ho'o). While I'm sure they'd be disappointed to
see him in
this
situation,they wouldn't abandon him, they would be right there with him, because
if
there is
one
thing my father believed in, it was loyalty. ·
While I
don t
know anything about Albert's business dealings, I know him. to be a fiercely
loyal,
supportive, devoted man, who loves his family. I'm
not
sure
if
my letter
will
affect you
in
any
way, but just know the Albert Hee I know, is a good man with a generous heart. Please show
some leriiehty when considering his sentence.
Respectfully,
Gina Pilialoha Giugni
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Sept 9, 2015
The
Honorable Susan Oki Mollway
Chief Judge
United States District Court
300
Ala
Moana Blvd.
Honolulu, HI 96850·0338
Aloha Moilway,
I have been a dose friend of Albert
He e
since we both started kindergarten in 1959
at
Kamehameha
Schools. It is with a heavy heart to witness all these years culminating in this life changing event with
Albert's conviction of tax fraud. Knowing Albert in his childhood years, I knew that he would have a
strong character built up
by
a strict mother and supporting father, Getting the chores done was always
top on the list before having any fun. His rather taught him thevah.le in cloih)l a good job and his
mother taught him the i;liscipfine to stay focused to sure the jab gets done. I am still amazed to
this day by Alpert 's ingenuity and abHity
to
ident ify a need and
to
build a solution
that
works.
It
was hard to forget the time in grade school when he constructed a canoe uslng fi ber glass sheathing
over x wood frames. He actually convinced me and another classmate to take the canoe out on
Kaneohe Bay ahd go fishing. No fish, but we survived. In high school, Albert became one ofthe highest
ranking officers in
our
class in Kamehameha's
ROTC
program and excelfed in wrestling and water polo.
Albert's achievements
at
Kamehameha continued when he was accepted
into the
United States Naval
Academy. During this
time
I attended
the
University of Hawaii's School of Engineering while Albert got
his Navy commission It the Academy. I understand from his stories about the Academy that other
cadets treated
him with
great respect believing he was a
crazy
Hawaiian from Hawaii. I think
it
had
something to do
with
his
boxi11g
and wrestling pursuits and his dedication to doing well . Alber t also
talked apout
the
dose relationship he developed
at
the time with BenryGiugni, aide
to
Senator Inouye.
Albert likened Mr. Giugnl
to
his father away from home. The relationship helped Albert keep his
connection
with
Hawaii and
to
value friends
from
Hawaii.
It
also helped him deal
with
the separation
from his family in Hawaii. think in his mind he knew
that
he could never live away
from
home.
Due
to
health reasons Alb,ert was unable to complete his service obligation to
the
Navy.
He
ended up
marryin l his high and tg ro
aise
his family. Some
people said
that Wendy was
the
brains and
AII:Jert the
brawn. Wendy had re¢eived her master's
;legree
in
planning from Harvard University
so
there
is
much
truth to the
statement.
She
was actually
the
anchor
for
the family whlch aUowed Albert to pursue IJis goal of starting his
awn
cpmpany. At this time 1
was also pursuing my career working as a civilengineer for a large company in San Francisco. Wf both
started are families
about
the
same time,
me with
one son and Albert
with
one
son
and
two
daughters.
Every summermy wife and I would always spend
our
vac
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I worked for fourteen years
in
San
Francisco from 1978 to 1992. n 1992 lniki lit Kauai and Albert was
able
to kick off
his
cogeneration power plant project that
was
going to
be
located in Kawaihae
on the
Big
Island.
At the time
the Federal
Government was promoting privately funded power generation projects
that also use its waste
energy
to produce a marketable by-product. The federal Act required a public
utility to
purchase
power from
a
co-generator before
using
its own generated power.
The
project would
have
added hundreds of thousands
o
dollars a year in revenue for
Hawaiian Home
Land, thousandsof
gallons per day of potable water th;tt Hawaiian
Home
needed to develop Kawaihae and 60
megawatts ofelectric power for the Sig Island. It
was
awin/win sltvat on for everyone except Hawaiian
Electric. It also enabled Albert to offer me a job
and
bring
me
back home to HawaH. one of Albert's
goals was to create jobs that would
keep
kids
in
Hawaii
or
biihgthem back
home
from
the
mainland.
Albert had the ingenuity and
business
awareness
to
secure private financing from Diamond Energy,
Inc.,
a subsidiary
of
Mitsubishi Corporation, to fund the project valued t over eighty
miHion
dollars. And it
could
not
happen
without the full support
of
the current
Hawaiian Home
land
Chairperson,
Mrs.
Hoaliku
Dr)lke.
Hawaiian
Horne
land
saw
the opportunity that Albert offered
and full
supported
him.
We literally battled forfive years
against
Electric's delaying tactics who
had
the subtie support
of
the
Public
Utility Commission. Albert
was
going
up against some
of
the
most powerful
business
individuals
in
Hawaii who
cre ted
a
:1arrierthat
was
too
high
to
cli\itb.
It
is
my opinion that these
actions from the past are tied into Albert's current
demise.
li1 fact
these
actions were not just against
Albert,
but
were actions
against
Hawaii Home land
th t
impacted HHL's ability to build more
homesteads for native
Hawaiians.
It
was also
during this time period that.Aibert experienced at
least
two incidences
of
Both
incidences
ended up in the
emergency
room at
Castle
Hospital.
The
second occurrence almost ended in Albert's car at the entrance
to
the
emergency room. Luckily hospital personnel were alert and able to carry him into the hospital to
ad minister treatment.
At the end of the KawaH1ae Co-generation project there were f ve persons working forWairnana
Enterprises,
Inc.,
Retired Admiral
Robert. Kihune, Sandie
Wong,
Robin Kamakahi,
Albert
and I.
twas
Albert's foresight and vision that kept his focus on identifying any utility based opportunities that could
benefit HHL, Before the end of tne power plant project Albert became aware of a federal program
whose mission was
to build electricity
and
telephone 'infrastructure to the underserved rural
ar:eas
of
America. This
program provided low interest
loans
to
assist
with the construction
and
operation of rural
telephone companies
called
Local Exchange carriers (RLECs}. At the time there were over a
tltOU >10d RLECs throMghoutthe
forty
nine
.states.
Also tied into this prosram
is
the
Universal Service
• p[qgtam
.to
s,uppof the
high cost
to cortstruct rural fnfrastructwe.
There
were
so m;my pieces
to th.e:
puzzle.
of to
standing up a new Rural Local Exchange Carrier and
it
could not hove
happened
without Albert's vision
and guidance. We received
strong support from Hawaifs
Congressional
delegation with letters to
the
FCC urging approval of our appliqtion for Universal
Service
Funds. It
was
more than three
years
:from
inception before sandwich
Isles
Communications,
Inc.
(SIC)
was
established
and
funded
by the Rural
Electrification Agency laterk"nowo as the
Rural
Utility
Service
{RU ;;).
One
ofthe
key
pieces
of the puzzle
was
the
exclusive
li ;ense issuedto
SIC by DHHL
to provide telecommunications
services
to all
lands
adrninisterecl
by DHHL
We
could not
have
qualified
as
a
Ri.EC
without the
lieense
from DHt L With this
license and
DHHL's to
.l)uild )ol'nestead
projects, SIC
was able
to
secure
loan agreements from RUS
for
$40
million to build lntrastrud:ure
on
the outer is1;mds,
$27
l'n l loh for infrastructure
on Oahu and
$338
million to build fiber optic network connecting all DHHl property, With this funding and
Universa'l Service support we were able to save
DHHL
millions ofdollars
in
infrastructure cost
in
the
construction
of
their subdivision projects. SIC continues to pay for the tost of telecommunications
infrastructure for DHHL projects
even
though funding from RU S
has
stopped
and
support from
Universal
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Service Fund reduced
to
a fraction of its original amount.
The
reduction ofth Universal
Service
Support
was
implemented by the Federal Communications Commission without
out
any
recourse for companies
like
SIC
who had incurred large debts in the construction
of
ts telecom infrastructure. We have made
major changes in the way we do
business. We have
reduced
our
cost
of
construction and operations
and
in
the process
of
renegotiating our debt service. Although Albert
is
not involved in the day
to
day
business
of
SIC
he.
was the foundation
of
the company. The reduction in Universal
Service
support has
created huge cracks in
SIC's
foundation and in my opinion Albert's foresight and ingenuity is needed to
keep the foundation from fciling. Today SIC has almost seventY employ(les and we maintain almost
four thousand HHL customers.
hope the message am trying to convey is clear that
SIC
would not be wh
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September 28, 2015
The
Honorable
Susan
Oki
Mollway
Chief Judge
United Smtes Distr ict Court
300 Ala
Moan:t Blvd.
Honolulu, Hawaii 96850-0338
Aloha Judge Moll""'Y'
Maha o for the opportnnity to provide this statement to the Court for consideration
in
the
sentencing
of
Albert Hee My name .is Lani Ma'a Lapilio, and I AI Hee 's fust cousin.
\l
and I wetate
the
planmng
.and
pertnitring
process
and
er1gage
in
commnnity
ourrea.ch with the hotueste-4ders,
native
Hawaiian organizations and smte and federal
agencies. AI provided .me the opportLlnity ro start rny own culmral consulting business and
SIC became y
fust
client.
Community
outreach
for SIC took us deep into Hawaiian communities. TI1e SIC
network was a
v ry
difficult project to explain because there were m.any entities and
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technicalities invohred such as the Public Utilitit'S Coll111liilsion regulations and the DHHL
license whiclllitni ted
the
serving to new homeste::tretuely
bpsy pep;on, I could always count on hitn to make time to attend these meetings
and
directly
address any questions
or concems that
were raised. Everyone appredar.cd
chat
Al took
the
time
to
personally
meet
with
them
and
they knew they were
v ry
fortnnare
to
have
broadband access including ihe full scxvices of the internet fut educational, bu$iness and
recreational pursuits at affordable rates.
For
many homesteaders
it
rnadr a difference
in
being able to stay in H.awaii or having to leave tile islands in order to fi11d wotk
In
2005, nne patticular very rural homestead community on Maui, refused to allow SIC
to
bring
in the
undersea cable because. they were nor ready tn emhtace the fiher optic
broadband technology. Jn a meeting last \veek J .rnn into the leaders
of
this community and
they expressed theit u·emendous regret at not accepting the opportunity at the tim.e as they
now
understand the ituportance of broadband for their children and grandchildren's future
and
they feel they will be left behind in the digital world.
Last
week I v'isited Kahikim:ii which
is
the
most
rural Hawaiian
homestead
in
the
state
accesb-ible
11ly
by 4 wheel drive vehicles where people live totally off the grid. 1'here is
no
electricity
or
running water for
the
dozen
or
so famili.es
th .tt
live in this community however
they have telephones and internet, thanks to SIC.
From
their it takes an hon:t to
get
down to the main highway and then an
hout
drive to the nearest to\vn. To get to school each
morning
the children
must get up at
4:00a.m to begin the
long t:tt>.k
to
school and then
travel
the same
amooot
of rime and distance back
home
in the evening. We spoke wich a young
girl in the second grade who depends on the SIC's internet in ntder
to
do ller homework.
Without this in1portant connection she would not have access to the outside world due to
her
isolated living condi tions.
The
:fittoilies
that
live
in
Kahikinul ate so gratefUl
to
have
inte.rnet service as well as phone service especially in emergency which
oofottunately happens a lot due to bad weatlle.r, the bad toads
or
in the case or medical
emergencies.
lvl ny
of them use
the
intemet
to
conduct their businesses which is integral to
li.ving
theit
lifestyle
of
choice.
Al's vision for the SIC netwo.rk
is
anlazing by any standard and
tn
his etedit be
had
the drive
and initiati,,e to put together an intlovntive business model to better the lives of Hawaiians.
W'hen the lives
of
Hawaiians are improved, t he liv es
of
everyone
in
the
a tger
community is
improved as welL Tclecnll:llnunieations is such a highly regulated environment yet.Al has
.managed t create, build and sustain a company that truly stands
fm
advancement and will
serve homesteaders for generations to come.
When we were
growing
up, our ohana struggled to make euds meet. A was fortunate
to
have .received an award m attend U.S. Naval Academy however fo.t my parents, there was no
way that I could attend a mainland college as we could
not
affotd
it.
Detennined to have the
experience
of
at
least
one
year
of
college
on
the
mainland, I was fortunate
to
he
ac.;epted
to
a college exchange program at
the
University
of
Oregon.
At
that time, ,Albert
and
Wendy
were living on the east coast and because AJ knew that I may
not
ever have the opportunity
again, he invited me to join them for
the
wlntct break instead ofgoing back home to Hawaii
fot
Christmas. We
had
a
wondetfultime
visiting many cities and historic places in New
York, New J tsey, Connecticut artd Massachusetts.
One
unfortunate occurtence happened
when
someone broke
inm our van
and
stole all
of
our personal belongings. My Hawaiian
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bracelet
that I
received as a graduation
gift,
wa$ stolen
and
in Al's
typical
generous
style
he
gave me the
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}Vice Admiral Robert
Kalani Ulchi
Kihune, USN {Retired)
September
15, 2015
Dear Judge Mollway,
lam Vice Admiral Robert Kihune,
USN
(Retired). I was hired by AI Hee, the President and
CEO of
Waiinana Enterprises, ln 996 o originally negotiate a
power
purchase agreement {PPA) with Hawaiian
Electric Company (HECO) for an electric power plant that he had planned to build on Hawaiian
Homelands on the Big island. A year later, this project was terminated because HECO would not agree
to
a
PPA.
l was
then
asked.by
Alto
be the
CEO
of
Sandwich Isles Communications {SIC), a new start-up
subsidiary ofWaimana Enterprises, a position which assumed
in
1997. SIC
is
licensed to provide
telecommunications services to the native Hawaiian beneficiaries of the Department of Hawaiian Home
lands {Oflfll}. l accepted that position because its mission resonated strongly with my desire
to
actively
contribute to Improve
the
quality
of
life, public health and safety, educat ion and economic growth for
native Hawaiians by providing tomorrow's broadband technologies today
(SIC's
mission statement).
Being ofhalfHawaiian and halfJapanese ancestry, l personally experienced undue discrimination, both
as a Hawaiian and as a Japanese, while growing up during WWIJ which sensitized me in my early life
towards a career
in
service leadership that could bring about needed changes that would provide
minorities with the same opportunities as other Americans. After graduated from
the
Naval Academy
and seeing the discriminatory policies still being practiced in the
Navy
when entered the active fleet in
1959, decided
to
remain
in the
Navy and focus a major part of my goal in
the Navy
to change this
discriminatory atmosphere, against women and racial minorities. am proud
to
say
that the
Navy
has
made
great strides in achieving this goal in my 35 years
of
service. The achievements
of the
442nd,
during and after
WWII, went
a long way to achieve this needed change for the Japanese Americans and
they became my role model. -aut native Bawaiians are still struggling. like my past role
as
a Trustee of
the
Kamehameha Schools, I felt compelled
to
take on this role at SIC because I foresaw it
as
a
cataly$1:
for generational changes for native Hawaiians.
I retired from SIC in 2013 to become a
full
time babysitter for my grand-daughter while my daughter
attended nursing school in Northern California. Having known and worked for I Hee for nearly 20
years, I humbly request
the
Court's consideration for leniency in his sentencing for the reasons
that
follow.
Prior
to
1995, many
of
the existing beneficiaries of the Department
of
Hawaiian Home lands
(DHHL)
in
remote rura·l areas were without telephone services because
the
then service carrier,
GTE Hawaiian
Tel;
required
these
beneficiaries
to
personally pay for
the
construction of telephone lines
to
their properties.
Many ofthe other beneficiaries were served with party lines {multiple telephones
on
the same phone
line). Additionally,
DHHL
had to pay for the cost
and
expense of constructing telephone lines
by GTE
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Hawaiian Tel in new residential subdivisions, thus limiting
DHHL's
goal
of
building new residential
subdivisions.
When
the Chairman ofthe IiHHL asked
Al
Hee ifthere was a way to improve the
telecommunications services on Hawaiian Home Lands without passing the significant additional costs
to the beneficiaries to rebuild their
then
out-dated telecommunications infrastructure, AI
spent
a
significant amount oftime effort and.his own resources to research and meet with federal officials of
the Department
of
Agriculture Rural Utilities Service {RUS) and the Nation;;. Exchange Carriers
Association
(NECA)
to start the process of having SIC designated a Rural Local Exchange Carrier
(RLEC)
to
qualify to receive subsidies from the Universal Service Fund {USF)
to
repay the construction loans
that
would be used to build the new telecommunications infrastructure on HHL After AI was issued an
exclusive license by DHHL
to
build and operate a broadband telecommunications network on
HHL,
it
took him nearly three years ofdue diligence by the DHHL, PUC, RUS, and the FCC
to
have
SIC
designated
an RLEC,
receive
RUS
construction loans, and receive USF funding. AI was driven by a strong
commitment to fulfill the mission of SIC
as
indicated earlier and despite difficulties associated with this
long and drawn-out process,
he
never gave up because
he
was determined to do all
he
could
to
help
reverse the trend of Native Hawaiians, who are currently over represented in nearly every negative
measure
of
well- being, including high unemployment rates, health problems, excessive school drop-out
rates, drug and alcohol abuse, spouse and child abuse, and high incarceration rates. He envisioned that
a state-of-the-art telecommunications system throughout the DHHL would be a critical tool to reduce
these statistics through the introduction new technology, such as distant learning, high capacity data
and video capability and telemedicine. Today, 100% of SIC's network is completed on Molokai and
Kauai,
40%
on Maul, 20% on Big Island and 10% on Oahu. An undersea cable linking these ftve islands
Is
100% complete- and today, SIC is serving approximately 3500 customers, many in neighbor island rural
communities, with capabnities they neverhad before and
at
costs comparable to telecommunications
services in the Honolulu urban area. But as you can see
the
work is not over and will continue to need·
Al's assistance, particularly on Oahu,
if
the company is to complete its mission.
Al's contributions
to
the community.
a. The 168 million construction loans he has obtained from the RUS, along with 23 million of
SIC's own funds, to build
the
high capacity telecommunications network on and between the
non-contiguous HHl properties throughout the
state
created numerous jobs for construction
and engineering companies. The 125 million private investment funds
he
secured
to
build the
undersea cable between the five major islands on which HHL properties are located, further
contributed to jobs.
b. DHHL beneficiaries have a state-of-the-art telecommunications/broadband network free of the
cost of construction, providing them with significant economic and public health/safety
opportunities.
c.
By eliminating
the
cost of telecommunications infrastructure in its new subdivisions,
the
savings
allow more DHHL subdivisions to be built.
d. When the Oceanic interisland cable off the coast ofKihei, Maul was unexpectedly severed in
2010,
AI
was asked and allowed the cable company to use SIC's undersea cable for a fee for 52
days to provide emergency restoration services for 400,000 Oceanic customers until Oceanic's
undersea cable was repaired.
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e. The DHHL community of 200 ranch lots in Puukapu on the Big Island had no land-line telephone
and internet service. GTE·Hawaiian Tel
had
to.ld the ranchers that it would cost
about
$30,®o·
per rancher to install poles and string telephone lines to
their
properties. I Hee responded to
the ranchers and today
the
ranchers enjoy not only telephone services but high speed.internet
services as well.
f. The remote DHHL community
of
Kahikinui, located on the south side of Haleakala on Maul, is a
community of pioneering families occupying 5-acre hillside lots and committed to restoring
the
life, beauty and productivity ofwhat was once a thriving community of2 ,000 native Hawaiians
before post contact abuses decimated both the population and the productivity of the land.
With no commercial electrical power, no cell phone service available, and only rough roads
resembling foot trails that took
3
minutes to traverse down from their homes to the main
highway, the community requested help from I to install a telephone service that would not
only provide emergency calls
but
also to improve thei r quality
of
life.
I
responded by installing
telephone and high speed
internet
service through an innovative network ofunderground
distribution to each lot with solar powered microwave shots back
to
SIC s major network.
g.
I
has generously contributed
to
Native Hawaiian schools
and
organizations through
the
many
fimdraisers scheduled every year.
He
has also requested and
aTiowed
his employees
to
volunteer
to
assist a Native Hawaiian Charter School in He'eia clean the new school sight during
working hours.
There
is
no question
that
I Hee
Is
a
true entrepreneur
and a determined business person who
is
committed to succeed
in
business.
s
such, he has experienced disagreements wlthhls competitors,
such as HEI and Hawaiian TelCom, as well as with
the FCC.
He has been perceived
to
be a difficult
person
to
deal with in business, but his personal qualities reveal a very caring and generous individual
who
will
give you his shirt right off his back.
a.
Whenever any employee has medical
or other
serious problems,
I
would
get
personally
involved
to
ensure
that the
individual was provided assistance to the maximum extent legally
allowed. These are just two examples.
{1) He
personally assisted a worker that had become addicted to ICE by finding a program to
help him remove his addiction. The worker was successful
in
curing his addiction for leE-
and
AI
found a place for him to live to
get
away from his friends who were on drugs.
{2) Another worker had serious medical problems but could not afford
to
be unemployed. I
dii'ected the Ulrector ofHR that after allof
her
siCk leave and lawful benefits that allowed
her
to
remain a full time employee had expired, he
set
up a program that allowed her to be
a part time worker who can be hired
to
do essential work until she could recover fully to be
a full time worker again.
Her
recovery was slow
but
Al's compassion allowed her
to
maintain an adequate quality of life.
b. While the pay of his employees
are
comparable to
other
companies
of
similar size, he has
provided
all
of his workers with
one
the most generous benefit packages.
c. For most
of
the years I for AI, he kept his salary at a low level as the company suffered
the groin pains of a start-up company.
s
the owner and President, he was legally entitled to a
larger salary
but
never took it until recent years.
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d.
I
owns a home in Enchanted l kes th t would be considered a moderately priced home by
Hawaii standards, in which he remains comfortable. He does not like to travel
or
ttend large
events, unless
there is
a business necessity or contributes to
the
Native Hawaiian organizations.
I mention this because, from wh t I observed, he does
not
have a lavish life style.
Because of his past contributions and strong commitment to assist our native Hawaiian people, I humbly
ask your consideration for leniency.
Thank you for taking time to re d my request and for your consideration.
Very respectfully,
Vice Admiral,
US Navy
Retired}
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The Honorable Susan Oki Mollway
Chief Judge
United Stated District Court
300 Ala Moana Blvd.
Honolulu, Hawaii 96850-0338
Dear Judge Mollway:
September 20, 2015
My name is Harold Call Johnston, Jr. I have known Albert Hee since late 1997, when he and his
then CEO, Vice Admiral Robert Kihune USN Ret.), began a recruitment effort to have me join
Sandwich Isles Communications SIC). I joined SIC as its general manager in March 1998, and
except for a four-year period from 2001-2005 when I left
to
address personal matters, have worked
as an executive at SIC. I am currently the Director
of
Planning and Strategy. During my time with
SIC, I have strived to support
Al s
consistent vision and direction to improve the life of fellow
Native Hawaiians
by
providing them with the highest quality broadband services at very affordable
rates - services that many in the Hawaiian community would not have access to, were it not for
Al s
commitment.
I know that AI is about to
be
sentenced under a federal
tax
conviction. Having had the opportunity
to work closely with Al for some
3
years, and gotten to know and observe his leadership style
and his consistency in both personal and business values, I have grown to have tremendous trust
in, and respect for this man. I can only comment with great personal sadness that whatever events
or mistakes he made that led to this conviction would
be
so out
of
character for the AI Hee that I
know. It is with this sentiment, that I respectfully submit this letter to you in support
of
AI, whom
I continue to respect and trust completely.
I am part Hawaiian and live on Hawaiian Home Lands HHL) in Papakolea, having enough blood
quantum to qualify as a successor to my mother, who was originally awarded the lot in 1947. I
live in Papakolea with Lana, my wife
of
52 years and also a Native Hawaiian. Our 3 grown sons
live elsewhere with families of their own, but ours is a typical Hawaiian home, with both short and
long term lodging
by
cousins, siblings, nieces, and nephews who needed shelter and family
support. That situation is fairly common on HHL.
I graduated from Karneharneha Schools and was appointed to the U.S. Naval Academy in 1959,
by our then Territory
of
Hawaii Delegate to Congress, John Burns. Academy life was tough and
geared to instill in you the ability to perform well under stress, never give up and, above all, to
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lead by example and with honor. At the Naval Academy, we were instilled with and operated
under an Honor Concept . The Honor Concept placed the decision as to what was right and
wrong upon the individual- it basically said that you as an individual know if something
you
have
done or are about to is unethical or dishonorable, and you alone are responsible for your actions.
West Point has its Code of Honor ), which is similar but with more specifics as to what constitutes
an honor violation. These systems are more than lip service - they are part
of
our service
academy culture that an officer has to be trusted. During one period, SIC had service academy
grads, including, AI, as the company's senior managers. AI told me once that the reason he hired
all of us service academy guys was that he could focus on the business strategy because he knew
that he could trust us to collectively run the company. That trust continues to be mutual.
Upon graduation from the Naval Academy, I was commissioned as a Second Lieutenant in the
U.S. Marine Corps. I spent years in the Corps. n April1965, President Lyndon Johnson ordered
the Third Marine Division, primarily
my
battalion already afloat in the Caribbean on the USS
Boxer, a helicopter carrier, to intervene in the Dominican Republic civil war that broke out on
April 24. Violent clashes were taking place in the streets
of
the capitol, Santa Domingo,
threatening the lives
of
American and European civilians. We began evacuating American citizens
to our ship, and when our embassy came under attack on April
28,
my company was the first to go
in. Other elements of our Third Division and the Army's 82 d Airborne Division joined my
battalion a few days later to protect foreign and local civilians, and to establish a line between the
warring factions to restore order. Government rule was restored by September. While 44 Marines
and Soldiers were killed during that short conflict, I reflect now in the 50th anniversary year
of
that conflict with a strong conviction that our intervention was absolutely necessary, and I feel
good that we were able to help people - Americans, foreigners, and the local population
--
when
they were in great need and there was no one else to help. Although the missions
of
this first
Marine combat experience 50 years ago and that
of
my experience in SIC are,
of
course, much
different, there is a lot of similarity in the feelings of pride, duty, and commitment in helping
people where nobody else was going to step up.
That sense
of
helping people was not with me during my last tour in the Corps, when I served as
a Marine infantry company commander. The guiding factors there were to carry out your assigned
objective, but prioritize taking care
of
your troops and keeping them alive. Sadly, I lost
10
fine
young Americans during my 6-month stint in the field, before being assigned to the Division staff.
A United States strategic vision was totally lacking.
e
simply went out every day with an
assigned objective to search and destroy or make contact . I contrast this with my experience
at SIC, where the vision set by AI has always been clear, and I knew and felt good about my
mission.
Following my Marine Corps service, I spent 16 years with AT&T on the mainland, requiring
frequent moves for my family. I had key management experiences in running large engineering
and operations functions and ended my AT&T career with starting and leading a new sales and
2
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marketing organization covering the western states, including Hawaii,. In 1984, I accepted a job
with GTE Hawaiian Tel to start a new marketing department, and we moved back home. We
finished rebuilding the family home in Papakolea, where we live today. I accepted community
leadership positons and just stepped down last year, due to term limits, from the board of the
Papakolea Community Development Corporation (PCDC), a 501c3 organization which manages
the community center and park, creates economic development activities, and supports community
center health care, youth, and kupuna programs.
I spent 1 years with GTE, including a 2-year stint at GTE' s headquarters in Stamford Connecticut,
In 1991, I became GTE Hawaiian Tel's Vice President of International and Federal, overseeing a
multi-portfolio business that include a private telephone network for DOD serving 50,000 official
lines within the Hawaiian Islands, an international long distance business line, construction and
installation of overseas telecommunications networks for US military bases in Asia Pacific, and
Micronesia Tel, GTE' s telephone company subsidiary serving the Commonwealth of the Northern
Mariana Islands. Interestingly, Micronesia Tel borrowed over $80 million from RUS during my
tenure, even though it was part
of
the multi-billion dollar GTE Corporation.
Living in Papakolea and serving on community boards has given me good insight into the needs
of
the Hawaiian community. I am very aware of the high unemployment among our community
members, particularly among working age young men, and the low achievement scores of our
Hawaiian keiki in our schools. Health problems of native Hawaiians are also high on the priority
needs to be addressed.
AI
Hee' s vision and the programs and resources he has assembled are all
about addressing these needs: economic development to improve the employment situation, tools
to enhance education, and improved access to health care programs.
From the day I first met him back in 1997, and still to this day, A1 Hee's vision and direction has
always been to provide services that will benefit Hawaiians who would otherwise be left behind
concerning access to those services. When I first joined SIC in March 1998, SIC had a staff of
less than 10 people and no telecommunications expertise except for myself. Contrary to slanted
press reports that
AI
Hee ruled his company with an iron fist and was involved in every decision,
my experience in SIC was the complete opposite. AI had spent several years prior to my arrival
in developing a master network plan which was approved by the Rural Utility Service
Administration (RUS), and under which funding would be released on a project by project basis
as they were sent to the RUS for approval. Al 's guidelines to me were clear and specific: follow
the RUS approved Plan, make sure you follow the procurement and regulatory rules and have
service at the highest quality level ready for the communities when required. We fully complied
with the government rules requiring approval
of
each project design by federal government
engineers and competitive procurement with sign off by the federal government engineers for all
projects.
lleft
the details
of
the building and running
of
the company to his management team.
This goes back to the mutual trust issue that I cited earlier. As I look back today, I am amazed at
the network that SIC has built. We went on to put in infrastructure to serve an additional 20-plus
communities. SIC funded the infrastructure under the government programs that AI put together.
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Recent slanted media reports have made big deal
of
the large amounts
of
money that
AI
brought
in, insinuating that this was AI Hee's personal piggy bank. Judge Mo Iway, $166 million of that
funding was in the form of loans from the RUS, which SIC is charged with paying back with
interest. Every dime
of
those funds borrowed went to put in real equipment and infrastructure
to
serve SIC's HHL service area, in accordance with project designs and competitive procurement
processes that were approved by RUS. I know firsthand, because either I or my qualified SIC
colleagues during the time I was away from SIC, were in charge of the projects and the
procurement process. I was not involved in any
of
the reimbursements from the FCC Universal
Service Fund (USF) program, which SIC is eligible for
as
a Rural Telephone Company. I
am
confident, however, that our Accounting folks and Regulatory consultants through their oversight
and annual audits, have insured that SIC has always been fully compliant with all applicable Code
of
Federal Regulations (CFR) associated with the use ofUSF. Beginning
is
2003, SIC has received
$242.5 million to date in USF. These funds help to offset the capital costs and associated finance
charges
of
the RUS loans, and operational costs
in
providing service to SIC's HHL service area.
Yes, SIC has received over $400 million in government funding in the form
of
loans and USF
support, but that money has all been spent to build real infrastructure and provide much needed
service to HHL beneficiaries.
n addition to the government funding for the terrestrial infrastructure, AI put together private
financing to build the interisland marine fiber cabling system interconnecting the islands of
Hawaii, Maui, Molokai, Oahu, and Kauai. This latest technology, high quality system,
interconnected with SIC's terrestrial network funded by government programs, will insure that
native Hawaiians have access to the increasing broadband support they will require for economic
development, health care, and education for many generations in the future. While the network
built under
AI
Hee's vision was intended for service to native Hawaiians, continuing technology
advances in fiber-system electronics allow more and more bandwidth to be carried over the
terrestrial and interisland fiber cable infrastructure. AI' s vision to serve native Hawaiian has
resulted in his enabling a resource that will benefit the whole state. That was proven in 2011, when
the interisland cabling system used by Oceanic Cable for TV broadcast on the neighbor islands
was cut, and AI made a portion of the Paniolo Cabling System immediately available to Oceanic
to support its requirements until repairs could be made to
its
own cabling system. n a talk to Native
Hawaiian business leaders at the Council
of
Native Hawaiian Associations (CNHA) in August
2014,
AI
suggested that it may be decades before people realize the benefit to all of Hawaii from
the infrastructure that he has provided.
There are many examples
of
the benefits that
Al s
vision and companies have provided to
Hawaiian Home Lands. First, is the cost savings to DHHL. Prior to SIC, DHHL, or in some cases
- the beneficiaries themselves -- had to pay the dominant telephone company to bring
in
the
necessary infrastructure to serve an HHL community. Under the government programs, SIC
invested over $50 million in underground distribution to serve the new communities that were
developed with support
of
the $600 million settlement DHHL received from the State. SIC's
financial contribution represents real savings of dollars that would have to otherwise come from
4
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Kahikinui In early 1999, SIC management met with leaders
of
the remote HHL
community of Kahikinui, located on the south side of Haleakala on the island of Maui.
Kahikinui is a community of pioneering families occupying 5-acre hillside lots and
committed to restoring the life, beauty and productivity
of
what had once been a thriving
community of some 2,000 native Hawaiians before post contact abuses decimated both
the population and the productivity of the land. With no commercial power available,
rough roads resembling wide foot trails that took 30 minutes to traverse down from their
homes to the main highway, and no cell phone service available, these leaders were
concerned about the basic safety issues for their families, like how do they get help if there
is an emergency. SIC developed a unique solution, consisting
of
microwave radio links
from one
of
its Maui central offices, solar power for its equipment hub within the
community, and underground distribution infrastructure to each lot. Service was
inaugurated in early 2000, and today Kahikinui residents have access to not only telephone
service but also high speed Internet.
Molokai The company's Molokai-service story continues to evolve, and is perhaps the
broadest representation
of
the service benefits that I Hee 's companies have been able to
deliver to a previously underserved population. While the state's dominant telephone
company focused its resources on the more profitable and easier-to-serve larger cities and
towns, service on rural Molokai was lacking. Internet service was generally not available
or very slow. SIC used its access to RUS and FCC funding support programs to deliver
high quality broadband services to the Kalamaula and Ho' olehua communities within its
designated HHL service area beginning in 2000. As word spread among the closely knit
Molokai population that SIC customers had access to high quality broadband services, SIC
began to receive requests for
its
services from residents within Hawaiian Tel com's service
area, including those residing on HHL lands who were existing (pre-SIC) customers
of
Hawaiian Telcom and only hand antiquated dial-up Internet access via the analog telephone
line i hey wanted service.
In 2007, SIC s then CEO, Admiral Kihune, met with Hawaiian Telcom's then CEO, Mike
Ruley,
to
address the need to improve service for the HHL residents within Hawaiian
Telcom's service area. Mr. Ruley responded with words to the effect that tell them to
stand in line with the others at the PUC . Consistent with his vision to insure that native
Hawaiians have access to needed broadband services and recognizing that the incumbent
was not going to deliver that capability to its constituents in HHL Molokai communities,
I Hee authorized SIC's affiliate, ClearCom Inc., a Competitive Local Exchange Carrier
(CLEC) which was not restricted to SIC's service area, to provide broadband services to
the HHL beneficiaries on Molokai that were outside of SIC s service area. ClearCom
continues to provide that service today. Of all of the communities that SIC serves
statewide, Molokai has the highest penetration percentage of SIC's Internet service users
-underscoring the demand and need for broadband service in rural communities.
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From a professional viewpoint,
I
is probably one
of
the greatest visionaries I have ever known.
Internally in the company, we senior managers often comment how this guy always seems to be a
couple
of
steps ahead
of
us and has thought through, long before us, the critical tasks or obstacles
we need to address to achieve a major milestone of his vision. I related my Marine Corps
experience earlier with emotional reflection to convey that I have experienced working in tough
environments and the differences when the mission was good and not so good. I have also seen
my share
of
leaders, extending beyond the Corps to my civilian career --- good leaders and not so
good ones. I Hee has been a very good leader, instilling within his company a commitment to
the mission to serve Native Hawaiians and a sense
of
both accountability and mutual trust. At the
Naval Academy, we were indoctrinated with a tenant that a ship embodies the traits of its captain.
That is certainly true at SIC. We are a Hawaiian company with Hawaiian values. I see the
commitment to AI's vision to provide benefit to native Hawaiians even in our employees who do
not have Hawaiian blood.
I has created a work environment where there is probably as much a sense that we are family as
we are a business.
t
is interesting but not surprising to me that among our employees, AI' s
conviction has not resulted in negative gossips around the water cooler about him; nor has there
been a bailing out of the company by employees. Al 's conviction has led to more a sense of auwe
- we are saddened that one of our family whom we care for so much is in trouble, and
we
will
stick together as a family in mutual support, and dedicate ourselves to our mission to serve native
Hawaiians . During the past year
of
stress for him in preparing for and going through the trial, his
now 1-year old granddaughter, Roselani, has been continually at his side or on his lap. It is
probably unique in the business world to have the senior executive of the company hold business
meetings with a smiling baby on his lap. I think it
is
wonderful, and represents how important his
family is to him. He also has a new grandson, Kea u born in July. Al s family, like mine,
is
very
close. I know that this whole ordeal has been very hard on them, but they are strong and will stand
together in support of each other and their dad.
Judge Moll way, I offer no excuse for any mistakes
I
Hee made that led to his conviction.
I
is
a good man, however, whose vision, commitment and perseverance have helped to improve the
lives of many others. I know that he is committed to using his exceptional ability to continuing to
improve the lives of other for the rest
of
his life. As you evaluate the appropriate sentence for the
tax crime
of
which he has been convicted, I simply and respectfully ask that you judge I Hee not
solely on the basis of his mistakes brought before your court, but on the totality of the goodness of
the man
as
I have tried to convey in this letter.
With sincerity and great respect,
7
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September 15, 2015
The Honorable Susan Oki Mollway
Chief Judge
United Stated District Court
300 Ala Moana Blvd.
Honolulu, Hawaii 96850-0338
Aloha Judge Mollway:
My name
is
Naomi Kahumoku Miyashiro and I am the Director of Human Resources
for
Sandwich Isles
Communications, Inc. (SIC). I have served in this capacity since March 2011 and prior
to
this position, was the
Manager of Human Resources
and
Administration at the Keck Observatory on Hawai'i island from
2005
to 2011.
In late 2010, I decided to move back from Waimea
to
Oahu
to
be closer to family as was looking for a human
resources position in Honolulu. I had already been offered a
job with
my former employer when I received a
phone call in January of 2011 informing me of a human resources position with
SIC.
Admiral Kihune and my
former
CEO
agreed to provide me with an opportunity
to
choose between both companies and after many hours
of consideration, I chose not return to my former company, but
to
come and work
for SIC.
After initially meeting with several SIC staff, including Admiral Kihune, I received a phone call from Albert Hee that
he wanted
to
meet me as well. This was the first time I met Albert in January of 2011. We met at Zippy's
Kaneohe along with Janeen Olds. While eating saimin, Albert explained why he went into the telecommunications
business and how vital
the SIC
network was
to
the growth and wellbeing of our people. Living in Waimea for over
six years, 1was already very famil iar with the Department of Hawaiian Homestead Land (DHHL) community and a
colleague at the Keck Observatory lived on DHHL serviced by SIC. As he explained the challenges and
opportunities of growing SIC, I was able
to
correlate the sentiments of my former colleague as she always spoke
about the positive impacts
of
broadband and telephone service and what
it
meant
for
her family
to
be
'connected
to
the world'. They live on a six acre parcel several miles outside
of
Waimea on the slopes
of
Mauna Kea where
no land line service was available prior to SIC.
For me, accepting the position
to join
SIC was not
just
a professional opportuni ty, but an opportunity to give back
to my people I believe that
what
SIC does and will do in the future has a direct impact, not just
for
native
Hawaiians but
for
the State of Hawai'i
as
well.
Without
someone like Albert's vision and fortitude, the SIC
telecommunications network would not have happened in our lifetime I always believe
that
many would say
that
if Albert were haole, he would be called a successful entrepreneur,
but
because he is part-Hawaiian, people
misunderstand his business savvy and wit.
As
a certified Human Resources professional, I could
not
in good conscious pen a letter
to
you, without my 100
support
of
Albert
Hee.
f there is anything unethical, fraudulent or criminal about Albert, I could not in good
conscious continue to work for SIC. This
is
why I intend to continue serving as the company's Director of Human
Resources.
In
addition, Albert's
HR
philosophy is to provide local jobs that will help grow and develop staff, even
if
it
means that they take on bigger professional opportunities in another Hawai'i company. He
is
a generous,
compassionate and kind employer. We have had several employees on extended leaves of absence for personal
and family medical situations. Albert believes in providing benefit coverage long past FMLA requirements and
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several
of
our company benefits provide spousal coverage so
th t our
employees do not worry about loss
of
coverage if
their
eligible family member is affected. Albert truly wants what s best
for
each employee
and their
family.
I plead
and
humbly ask
for
a lesser sentence. Albert has done a tremendous amount
for
our company
and for
others in the community. Please consider community service and probation in lieu of sending him to prison.
There is much work to be done and he could continue to best serve Hawai i out of prison, then in prison.
Sincerely,
Naomi Kahumoku Miyashiro, SHRM-SCP SPHR
Sandwich Isles Communications, Inc.
Director, Human Resources
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The Honorable Susan Oki Mollway
Chief Judge
United Stated District Court
300
Ala
Moana Blvd.
Honolulu, Hawaii 96850-0338
Dear
Judge
Mollway,
September 15, 2015
Thank you for the opportunity to
be
able to submit this letter. I understand
that
Mr. Albert
Hee
is being
sentenced for a tax crime and I am writing in support of Mr. Hee.
My name is Ka i inioku upu uwai Patelesio and I am an employee of Sandwich Isles Communications, Inc.
SIC).
Prior
to
working for
SIC,
I worked for Waimana Enterprises,
Inc.
from April 2006
to
November
2007 and then again from May 2009 to December 2011 and transferred to SIC in January of 2012.
Outside of my employment with the Waimana Family of companies, I have always known Albert Hee as
Uncle AI. My father, in his youth, was cared for by the Hee ohana (Uncle Al s parents specifically) and so
I was raised to know him as my Uncle. I have the utmost respect and aloha for him and love him very
much. He has provided tremendous opportunities for both me and my family and
for
this I will be
forever indebted to him.
I apologize in advance for the length and format of this letter but I feel that the details I am including in
this letter are crucial
to
understanding the lens from which I view Uncle AI. For the past 11 years Uncle
AI has been a constant and steady presence in my
life-
not only as a mentor but also as a leader,
employer and benefactor. I d just like to provide examples
of
how this man s generosity and his
foresight has personally touched my life.
My life forever changed when I walked into his office in 2004 asking for his help in getting a job. My
employment history
is
an interesting one that involved a lot of movement
for
a few years but each
experience was one
that
I learned a great deal from. When I asked
to
meet with Uncle
AI,
little
did I
know that it would start me on this path that I continue
to
grow from. I had just graduated from UH
Manoa as a double major in Hawaiian Studies and Psychology, and was eager
to
get into the workforce
to 1)
Use
my newly acquired Hawaiian Studies degree and 2) Work with in the Hawaiian Community that
I hold so close
to
my heart. At that time I didn t know much about Waimana or SIC but I knew that his
companies provided telephone and other telecommunications services to residents on Hawaiian Home
Lands. Those kinds of services were important to me because I believed
that
that kind of
access to·
technology fu lfilled a crucial need in the rural Hawaiian communities. You see, during college I had
worked
for
several years at the Office of Hawaiian Affairs. I was a Trustee Aide and was able
to
travel to
many Hawaiian communities throughout our state when Board of Trustees meetings were held off-
island. I saw firsthand when I went into those Hawaiian communities how different the lives of
Hawaiians were outside of urban Honolulu. There were some communities still out there that were in
need of the basic necessities that we in urban Honolulu take
for
granted like access
to
sewer and water,
electricity, and yes even telephone services. I could
not
believe
that in
the 21st century people still lived
without
those services-
it
was unbelievable and very sad
to
see how diff icult everyday life could
be
without
those modern conveniences.
So in 2004 when I asked Uncle AI for help in getting a job, my hope was that maybe I would be able to
use
my skills and knowledge for one of his companies because I believed that his company s mission to
provide affordable telecom services to lessees of Hawaiian Home Lands was good and
it
was noble. I
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was of
the mindset
that
anything, whether it
b