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  • 8/20/2019 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.

    3

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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

    !"#$ &'&()*+),,-./)012 34*56$78 ..9 :;,.>&? @"A$ B& 4C .,, @"A$D3 E' (9--

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    was of

    the mindset

    that

    anything, whether it

    b