Victorino and Furtado face fines for violations Hawaii Campaign Spending Commission metes out $2,800, $2,250 respectively
Trinette furtado Silent on allegations
Mike Victorino Takes responsibility for “mistake”
Trinette furtado Silent on allegations
Mike Victorino Takes responsibility for “mistake”
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The state Campaign Spending Commission fined Maui mayoral candidate Mike Victorino's campaign $2,833.33 on Wednesday for 17 instances of failing to notify the commission within 24 hours of commitments to buy advertising.
The commission also took action on a staff complaint against Maui County Council candidate Trinette Furtado for activity in her unsuccessful 2016 campaign for the Makawao-Haiku-Paia residency seat, finding probable cause of campaign spending violations and assessing a $2,250 fine and ordering remedial action.
On Thursday, Victorino said his campaign had faced as much as $8,500 in fines, but the amount was reduced through a conciliation agreement with the commission.
"My fault," Victorino said when asked for comment. "It was a mistake. We learn from our mistakes and try not to repeat them."
Victorino took personal responsibility, saying he's not the first or last candidate to run afoul of the commission for the same violation, which he characterized as a "new law" that the state agency has been enforcing. He said he would pay the reduced fine.
Victorino's opponent in the mayor's race, Council Member Elle Cochran, was fined $250 in September, also for the late filing of information for electioneering communications.
According to a copy of the conciliation agreement obtained Thursday from the commission by The Maui News, commission Executive Director Kristin Izumi-Nitao initiated an investigation of the Victorino campaign in September. The agreement lists campaign disclosures for purchases of $39,225.56 advertising in July and early August from nine print and broadcast media outlets, including The Maui News.
The commission notes that Victorino "did not knowingly, intentionally or recklessly" violate Hawaii campaign spending law. It reported that the candidate "voluntarily and fully cooperated with this investigation, desires to resolve any further administrative proceedings and potential litigation by entering into this agreement with the commission on respondent's own volition without any coercion or duress and with full knowledge and understanding."
The fine will be paid no later than Oct. 31 into the Hawaii Election Campaign Fund.
Victorino is among the latest group of Hawaii politicians caught up in the commission's enforcement against candidate campaigns for failing to file what's known as a "statement of information for electioneering communications." The infraction involves a legal requirement for campaigns to file reports with the commission within 24 hours of signing a contract for an advertisement, TV commercials or social media promotions.
The campaign of Keani Rawlins-Fernandez, who is seeking the council's Molokai residency seat, also was fined by the commission Wednesday for a similar violation. Her campaign organization, "Kokua Keani," was fined $83.33 for the late filing of information for electioneering communications.
In September, the commission fined County Council Member Alika Atay $2,700 for violating campaign spending laws, although his infractions included two counts of unauthorized handling of campaign funds. The fine against Atay was the largest then levied among nine Maui County politicians hit with commission fines.
The commission found that Atay and his executive assistant, Brian Bardellini, wrote checks from the Atay campaign account when Hawaii law permits only the campaign's treasurer and deputy treasurer to receive contributions or incur expenditures of campaign funds.
The commission's complaint against Atay also included five counts of allegedly making false reports, noting inconsistencies between bank records and reports filed by Atay with the commission.
Atay's legislative and policy analyst, Furtado, came under scrutiny on the commission's Wednesday agenda for her 2016 council run. She currently is a candidate for the council's Makawao-Haiku-Paia residency seat.
The Friends of Trinette Furtado and Furtado herself were the subject of a complaint filed by the commission for alleged excess contribution violation, the filing of false reports, the prohibited use of campaign funds, the late filing of a second preliminary primary report and the failure to timely repay a loan.
Efforts to contact Furtado by cellphone and email were unsuccessful Thursday.
On Wednesday, the commission made a preliminary determination of probable cause that Furtado violated campaign spending law and, in addition to a fine, ordered her to pay $1,900 from her own funds to reimburse her campaign and remit $1,800 (in excess contributions) to the Hawaii Election Fund within 20 days. Furtado also was ordered to correct her campaign spending reports and to use her campaign funds to repay the $7,900 balance of a loan.
The commission complaint notes that Bardellini is the chairman of the Friends of Trinette Furtado campaign. And, he's chairman of the Friends of Alika Atay campaign.
The commission's complaint against Furtado's campaign focuses on 2016 contributions and a $10,000 loan from retired marine biologist John Grant, who in 2016 was a resident at the same Kulike Road address in Haiku as provided as a home address for Furtado herself. (According to the GoFundMe website posted by Furtado, Grant died May 15, 2017. The site sought help with cremation and memorial costs.)
The commission complaint reports that Grant donated $500 to Furtado on March 30, 2016, and $1,400 on April 15, 2016. Then, on Oct. 31, 2016, the commission received executed loan documents dated Oct. 12, 2016, and signed by Furtado and Grant for a loan of $8,100 from Grant to Furtado. The loan was reported by the Furtado campaign with the commission on Nov. 1, 2016.
(Furtado unsuccessfully sought the Makawao-Haiku-Paia council residency seat currently held by council Chairman Mike White in 2016.)
On June 12, the commission received an anonymous complaint about the Furtado campaign. The tip contained a copy of a Bank of Hawaii check, dated Oct. 11, 2016, that showed the loan amount paid by Grant was $10,000, payable to the Friends of Trinette Furtado. The check was deposited two days later in the campaign account. The campaign had reported $8,100, not $10,000, the complaint reports.
"The anonymous complaint revealed that respondent Furtado was involved in litigation involving the estate of Grant that sought . . . the repayment of the loan Grant had made to respondent" Friends of Trinette Furtado, the complaint says.
The commission issued a subpoena seeking Furtado's banking records from Oct. 1, 2016, to Dec. 31, 2016. Those showed that, in addition to the $10,000 check from Grant, there was a check drawn from the campaign account in the amount of $1,900, made payable to "CASH" for "Reimb. of overpymt. of campaign loan" on Nov. 2, 2016. The $1,900 expenditure was not reported by the Furtado campaign to the commission.
The commission counted the $1,900 taken from the $10,000 loan as an additional contribution from Grant, which -- added to earlier contributions of $500 and $1,400 -- totaled $3,800, or $1,800 in excess of the $2,000 donation limit for a County Council candidate.
Izumi-Nitao told The Maui News on Thursday that the commission has received no response from Furtado to its complaints or reports of its administrative fines or orders.
She said the commission has not heard from Atay as well.
"We can't believe there has been no reaction out of these two campaigns," she said.
Concerning Furtado, Izumi-Nitao said the commission tried to contact her to understand what happened with her campaign spending reports, but when there was no response or information provided, the commission staff filed a complaint.
She added that if Furtado were to win the election for the council seat, she would not be able to assume the office until the commission's complaints against her are resolved, including the payment of fines.
"That's a pretty heavy thing," Izumi-Nitao said. "It befuddles us (that) she is not doing anything. . . . We are in the dark what has happened to this money."
* Staff Writer Melissa Tanji contributed to this report. Brian Perry can be reached at bperry@mauinews.com.