David C. Farmer vs. Harmon - Witness Dan Inouye

The U.S. Department of Veterans Affairs failed to inform 6 million soldiers and their families of an agreement enabling Prudential Financial Inc. to withhold lump-sum payments of life insurance benefits for survivors of fallen service members, according to records made public through a Freedom of Information request.

The amendment to Prudential’s contract is the first document to show how VA officials sanctioned a payment practice that has spurred investigations by lawmakers and regulators. Since 1999, Prudential has used so-called retained-asset accounts which allow the company to withhold lump sum payments due to survivors and earn investment income on the money for itself.

The Sept. 1, 2009, amendment to Prudential’s contact with the VA ratified another unpublicized deal that had been struck between the insurer and the government 10 years earlier — one that was never put into writing, Bloomberg Markets magazine reports in its November issue. This verbal agreement in 1999 provoked concern among top insurance officials of the agency, the documents released in the FOIA request show.

For a decade, until the contract was formally changed, Prudential wasn’t fulfilling its obligations to survivors of fallen service members, says Brendan Bridgeland, an insurance lawyer who runs the non-profit Center for Insurance Research in Cambridge, Massachusetts.

“Every veteran I’ve spoken with is appalled at the brazen war profiteering by Prudential,” says Paul Sullivan, who served in the 1991 Gulf War as an Army cavalry scout and is now executive director of Veterans for Common Sense, a nonprofit advocacy group based in Washington. “Now vets are upset at the VA’s inability to stop Prudential’s bad behavior.”

That the VA allowed Prudential to issue retained-asset accounts for 10 years while the contract required lump-sum payouts is “more evidence that the VA was asleep at the wheel for a decade,” says Sullivan, who was a project manager and analyst at the VA from 2000 to 2006.

“When grieving families check the box that they want a lump sum, they should get it. We remain disappointed and irate at the VA’s failure to provide advocacy for veterans,” he says.

Since July 28, when Bloomberg Markets first reported that Prudential sent checkbooks instead of checks to survivors requesting lump-sum payments, state and federal officials have demanded the retained-asset system be investigated and reformed. The VA itself launched a probe of its life insurance program the day the first story was published.

The next day, New York Attorney General Andrew Cuomo launched what he called a “major fraud investigation” of Prudential and other life insurers over their use of retained-asset accounts. Since then, Cuomo’s office has issued subpoenas to Prudential and at least 12 more insurance companies.

The insurance departments in Georgia and New York have also opened probes. The U.S. House Oversight and Reform Committee plans to hold hearings into Prudential’s use of retained-asset accounts to pay money owed to fallen soldiers’ survivors.

U.S. Secretary of Defense Robert Gates — whose department includes the VA and who was in office when the 2009 agreement was signed — said when the VA started its probe that he had been unaware that survivors were being sent retained-asset accounts.

“Until today I actually believed that the families of our fallen heroes got a check for the full amount of their benefits,” Gates said at the time. “This came as news to me.”...

Included among an outpouring of support from judges, lawyers and prosecutors for the nomination of former U.S. Attorney Edward Kubo as a state judge were two harsh and critical letters written by assistant U.S. attorneys who used to work for Kubo.

A hearing on Kubo's nomination was held by the committee Thursday and featured uniformly positive and glowing testimony from witnesses.

Neither Inciong nor Muehleck testified at the hearing, which was halted while Kubo was still testifying and will resume Thursday.

Numerous dignitaries of the legal profession, as well as political figures including Mayors Mufi Hannemann of Honolulu and William Kenoi of the Big Island, wrote to recommend Kubo as a judge.

Inciong said in his letter that Kubo improperly inserted the U.S. Attorney's office into a state court domestic violence case that involved two agents with the federal Immigration and Customs Enforcement agency, or ICE.

In that case, ICE Special Agent Evelyn Delos Reyes Ramo obtained a restraining order in November 2008 against her former boyfriend, who worked as an immigration enforcement agent.

The restraining order, which is in effect until May, was granted after Ramo alleged that Jonathan Winnop threatened to kill her on multiple occasions and physically abused her by "punching, kicking, slapping ... spitting on me ... choking me with his hands, holding a knife to me ... and put(ting) his foot on my throat until I would pass out."

Kubo's office filed a "friend of the court" brief in the case in March 2009, which Inciong alleged was an improper attempt to "ease the conditions" of the restraining order against Winnop.

"The filing reeked on several levels and the true reason for the filing has yet to be revealed," Inciong wrote to the committee.

"It is ironic, to say the least, that if Mr. Kubo would be appointed to the bench it is my understanding that he would begin at the Family Court, a place where, less than a year ago, he attempted to intervene on behalf of a domestic batterer," Inciong wrote.

Kubo is expected to discuss Inciong's letter in testimony to the committee. He declined to discuss either letter written by his former employees.

State Sen. Sam Slom, R-8th (Kähala, Hawai'i Kai), a Kubo supporter, said Kubo testified at some length Thursday about Muehleck's letter, but said little about Inciong, other than to describe him as a friend and supporter of Muehleck.

Muehleck, a longtime federal prosecutor who has specialized in narcotics cases, disagreed with Kubo's policies at the U.S. Attorney's office, Kubo told the committee.

When Muehleck, a U.S. Army Reserve officer, returned to work in 2008 from a yearlong deployment to Iraq, he was upset to learn that a parking space he had previously used at the federal High Intensity Drug Trafficking Area offices here was no longer available to him, Kubo told the committee.

He was so angry about the issue and other matters that at one point he said about Kubo, "If I had a hand grenade now I would frag him," Slom said Kubo testified.

Kubo reported the incident as a workplace violence issue and tried to fire Muehleck when the prosecutor was in the middle of a narcotics and gambling prosecution trial.

Muehleck hired a private attorney and fought the dismissal after Kubo banished him from the U.S. Attorney's office. He worked for a year in temporary space inside the FBI office here and has since been reinstated.

Muehleck and his attorney, Charles Kleintop, have declined to discuss the matter.

In his letter to the Judiciary Committee, Muehleck wrote, "I can say without reservation that in my opinion Mr. Kubo is not qualified to serve as a judge."

He questioned Kubo's leadership abilities and knowledge of the law, saying, "Mr. Kubo has spent the last eight years building his resume at the expense of the people of this (federal) district."

Those letters were balanced against a near-avalanche of letters recommending Kubo for the judgeship.

Kubo, a Republican, served as U.S. Attorney for eight years but was replaced last year by Florence Nakakuni, a career prosecutor in the U.S. Attorney's office here.

State Sen. Brian Taniguchi, D-10th (Mänoa, McCully), the chairman of the Senate Judiciary and Government Operations Committee, said senators have some concerns about Kubo's nomination. He said his staff will look into the criticisms before the next hearing.

WASHINGTON — Sen. Daniel Inouye’s staff contacted federal regulators last fall to ask about the bailout application of an ailing Hawaii bank that he had helped to establish and where he has invested the bulk of his personal wealth.

The firm’s losses were depleting its capital reserves. Its primary regulator, the Federal Deposit Insurance Corp., already had decided that it didn’t meet the criteria for receiving a favorable recommendation and had forwarded the application to a council that reviewed marginal cases, according to agency documents.

Two weeks after the inquiry from Inouye’s office, Central Pacific announced that the Treasury would inject $135 million.

Many lawmakers have worked to help home-state banks get federal money since the Treasury announced in October that it would invest up to $250 billion in healthy financial firms. But the Inouye inquiry stands apart because of the senator’s ties to Central Pacific. While at least 33 senators own shares in banks that got federal aid, a review of financial disclosures and records obtained from regulatory agencies shows no other instance of the office of a senator intervening on behalf of a bank in which he owned shares.

Inouye, D-Hawaii, declined a request for an interview but acknowledged in a statement that an aide had called the FDIC to ask about Central Pacific’s application. Inouye said he was not attempting to influence the outcome. The statement did not address Inouye’s personal role in the inquiry, including whether he directed the aide to make the call or knew at the time that it had been made.

Even if Inouye were directly involved, it would not violate the rules the Senate sets for itself, experts said.

Both the FDIC and the Treasury said the decision was not affected by the involvement of Inouye’s office.

Inouye reported ownership of Central Pacific shares worth $350,000 to $700,000, some held by his wife, at the end of 2007. The shares represented at least two-thirds of Inouye’s total reported assets. Inouye has requested a delay in filing his annual financial disclosure for 2008, which was due this spring, and he declined to provide the current value of his investment. Since the end of 2007, the bank’s stock has lost 79 percent of its value....

Political Candidates Receiving Contributions/Support in the '08 Election Cycle from
CENTRAL PACIFIC BANK FED PAC (IKA CPB PAC- FED)

[WASHINGTON, D.C.] — U.S. Senator Dick Durbin (D-IL) today sent a letter to Senator Daniel Inouye (D-HI), Chairman of the Senate Appropriations Subcommittee on Defense asking for a hearing on private security contractors in Iraq and Afghanistan, specifically Blackwater Security.

In today’s letter, Durbin noted: “Companies such as Blackwater have enjoyed enormous government contracts. Their ties to the Administration have allowed them to grow significantly and reap large wartime profits. Yet their accountability has been limited.”

The recent incident in Iraq involving Blackwater Security and the Iraqi government’s decision to ban the company from operating in that country shines a light on yet another critical issue in Iraq: the use of private security forces. There are approximately 20,000-30,000 private security contractors in Iraq; the exact number is unknown. I have serious concerns about the inadequate regulation and oversight of these companies.

Companies such as Blackwater have enjoyed enormous government contracts. Their ties to the Administration have allowed them to grow significantly and reap large wartime profits. Yet their accountability has been limited.

Stories abound of contract employees placed in war zones without the proper personal protection or equipment and of units being undermanned. If these companies are unnecessarily risking American lives while their profits increase, they should be held accountable just as a military commander would be held accountable under the Uniformed Code of Military Justice for a failure to protect the troops. The connections Blackwater has established with the Administration and that fact that its work is done in Iraq should not prevent it from being held legally accountable for its actions.

Many of the men and women working for Blackwater in Iraq and Afghanistan are honorable, professional and patriotic. But any organization with as wide a footprint as Blackwater is likely to have some exceptions in its midst. While in theory security contractors are bound by the same Rules of Engagement as our soldiers are, the limited oversight of their work by the Administration has made it exceedingly difficult to hold them accountable for their actions. In practice there has been little or no accountability exercised.

Finally, the Administration’s haphazard planning for this war has fostered an over-reliance on private security forces to fill gaps that should have been anticipated. When the Administration has needed more security than our over-stretched armed forces can provide, it has turned to private security contractors paid by American tax dollars. Those contractors are seen abroad as representing the United States, even though U.S. oversight has been limited.

These issues need greater attention. Accordingly, I request that the Defense Appropriations Subcommittee conduct a hearing to investigate, among other things, the following issues:

1. How many private security contractors currently work in Iraq and Afghanistan?

2. Under what rules do they operate? What are their specific rules of engagement?

4. How many lethal and non-lethal incidents have they been involved in since the beginning of the war? Who investigates these incidents and ensures that they are held accountable for any lapses or illegal acts?

5. What no-bid contracts has Blackwater received from the Administration? Are there ties between Blackwater and the Administration that raise concerns about any of these no-bid contracts?

6. What are Blackwater and other companies doing to ensure the maximum protection of their employees on the ground in Iraq and Afghanistan? Who, if anyone, monitors whether the companies are placing profit ahead of the protection of their employees?

7. What U.S. laws, if any, are groups like Blackwater required to obey in their operations abroad? What Iraqi or Afghan laws are they subject to when they work in Iraq and Afghanistan? Are there any restrictions that prevent such groups from being hired by foreign governments or entities as private mercenaries?

NEW DISCOVERY (02-07-09): More undisclosed conflicts of interest between Judge Barry Kurren, Faye Kurren, Tesoro Hawaii, Dan Inouye, Daniel Akaka, Ralph Parsons Company, Bechtel Corporation, Kamehameha Schools, etc.:

U.S. Sen. Daniel K. Inouye will become chairman of the Senate Appropriations Committee, which will give Hawai'i unprecedented leverage in the competitive, and often arcane, federal spending process.

The Hawai'i Democrat, who has aspired for nearly four decades to lead the influential panel, will take over in January when the new Congress convenes.

U.S. Sen. Robert Byrd, D-W.Va., who has been in poor health, announced yesterday he will step down as chairman and recommended Inouye, who was in line for the post by seniority. Senate Majority Leader Harry Reid, D-Nev., confirmed that Inouye will become the chairman.

"I hope that I am sufficiently prepared to succeed my mentor who has assisted and guided me over the past 30 years, and in particular, during the years that he has led this important panel with distinction," Inouye said in a statement from Washington, D.C.

Inouye, who first joined the committee in 1971, has used his influence to help direct billions in federal money to Hawai'i. While much of the money has gone to the military, given the state's strategic location in the Pacific, other spending has been for transportation, energy, health, education, agriculture and rural development. The senator's power also helps in negotiations with other senators on special projects, known as "earmarks," and on public-policy issues that affect the Islands.

The committee, the largest in the Senate, is responsible for the 13 annual appropriations bills that pay for government operations. Inouye is currently the chairman of the panel's defense subcommittee, and he said he expects to keep that position when he becomes chairman.

Inouye's leverage has been doubled by his partnership with U.S. Sen. Ted Stevens, R-Alaska, the second-ranking Republican on the panel. The friends have helped ensure that federal spending in Hawai'i and Alaska is protected no matter which political party controls Congress or the White House.

With Stevens' re-election still in doubt as ballot counting continues, and the possibility the Senate may punish him for his felony corruption convictions if he returns, Inouye's rise to chairman could help offset the potential loss of his ally.

Inouye's climb to chairman and the election of Hawai'i-born U.S. Sen. Barack Obama as president could potentially give the Islands unparalleled political power in Washington.

U.S. Rep. Neil Abercrombie, D-Hawai'i, said the juxtaposition of Inouye — a Japanese-American awarded the Medal of Honor for his bravery in World War II — and Obama — the first African-American elected president — is remarkable for Hawai'i.

"It's a remarkable story that, were you trying to write it fictionally, it probably never would have occurred to you," Abercrombie said.

Inouye's power could help Honolulu obtain federal money for a rail transit project and other infrastructure priorities. The senator has said that federal lawmakers are interested in such projects and that the initial federal money approved for rail is an indication of a future commitment.

"I think it's a recognition of his effectiveness in the United States Senate. For us, personally, here in Hawai'i, it could only mean better news in the future," Mayor Mufi Hannemann said in a telephone interview from American Samoa, where he was visiting his mother's graveside. "He has been a longtime proponent of rail transit."

"I expect, and we already talked about it before he left Hawai'i, that he pledged his 100 percent commitment to me and the city so that we can be successful on this project," Hannemann said.

Inouye and Stevens have been criticized by some taxpayer and open government groups for the amount of federal money they steer to their home states in earmarks. The two senators have said that earmarks have funded important projects. Byrd is also renowned for his ability to obtain money for West Virginia.

Steve Ellis, vice president of Taxpayers for Common Sense, said Inouye "has not been any slouch in delivering the bacon to Hawai'i."

"Certainly Senator Byrd was not looking to change the process or change it to make it more transparent," he said. "I don't think Senator Inouye is about to pick up that mantle of reform or change. He is a member of the old guard."

During the presidential campaign, U.S. Sen. John McCain, R-Ariz., blasted earmarks as examples of government waste and challenged Obama on his earmark requests. Last March, Obama co-sponsored an amendment by U.S. Sen. Jim DeMint, R-S.C., that would have imposed a one-year moratorium on earmarks.

"I have come to believe that the system is broken," Obama said in a statement at the time. "We can no longer accept a process that doles out earmarks based on a member of Congress' seniority, rather than the merit of the project. We can no longer accept an earmarks process that has become so complicated to navigate that a municipality or nonprofit group has to hire high-priced D.C. lobbyists to do it. And we can no longer accept an earmarks process in which many of the projects being funded fail to address the real needs of our country."

John J. Pitney, a professor of politics at Claremont McKenna College in California, said that while there has been increased concern about earmarks, he does not see change coming, because Congress remains divided on the issue.

"On the one hand, many members denounce them and on the other hand many members pursue them," he said. "During his time on appropriations, Byrd has fought strongly for the interests of West Virginia while Inouye has fought just as strongly for the interests of Hawai'i."

Pitney, a former congressional fellow and Capitol Hill staffer, said Inouye is very knowledgeable about and devoted to the appropriations committee. "He has an institutional loyalty to the appropriations process," he said.

Speculation about Byrd's future as chairman started earlier this year after the 90-year-old senator was hospitalized. Inouye, the chairman of the Senate Commerce, Science and Transportation Committee, was in line to be his successor but would not discuss the possibility publicly out of respect for Byrd and Senate decorum.

Last month, after news reports suggested Reid wanted to ease Byrd out of the chairmanship, Byrd dismissed the talk as "Washington back-room gossip" that did not serve the party.

Asked about the speculation, Inouye, 84, told local reporters he was interested but not if it meant Byrd would be pushed aside.

Reid, in a statement yesterday, said Byrd's decision to step down "was eased by the knowledge that the gavel will continue to be in such capable hands."

Byrd, the longest-serving senator in history, said Inouye "has stood in line for many years and now his time has come. He is my friend. He is a genuine American hero. He will be a skillful and fair chairman of the appropriations committee because he is a man of outstanding character and great wisdom."

WASHINGTON (AP) — Hawaii Sen. Daniel K. Inouye would be among the first witnesses called in defense of Alaska Sen. Ted Stevens.

Inouye, a longtime friend of Stevens, could take the stand Thursday in Stevens’ corruption trial.

Prosecutors have already presented their side of the case, with witnesses testifying on accusations that Stevens tried to conceal more than $250,000 in renovations to his cabin and other gives from an oil pipeline executive.

U.S. District Judge Emmet G. Sullivan was considering declaring a mistrial today after prosecutors admitted withholding some information from defense attorneys.

Ted Stevens, Alaska's embattled Republican, enlists the aid of a Democratic senator

Hawaii's Daniel K. Inouye is putting friendship ahead of party loyalty -- an unusual act in a Senate that is now bitterly partisan -- by helping the indicted senator facing reelection.

WASHINGTON -- During an election year in which Democrats and Republicans are in a bare-knuckled fight to gain seats in Congress, Hawaii Democrat Daniel K. Inouye is traveling far and wide to work for a fellow senator's reelection.

But the colleague Inouye is trying to help is a Republican, Ted Stevens of Alaska.

Stevens, who has been indicted on corruption charges, has become a top Democratic target in a race that could be crucial to the party's hopes of securing a filibuster-proof majority.

But that hasn't stopped Inouye from putting his decades-long friendship with Stevens ahead of party loyalty, an unusual act in a Senate that has become bitterly partisan.

Inouye has traveled to Alaska to campaign for Stevens. He has contributed $10,000 from his political action committee to Stevens' campaign. And he has appeared as a "special guest" at a Washington fundraiser for Stevens.

"I want my partner to go back to Washington," Inouye said during a recent campaign appearance for Stevens in Alaska. "Our parties don't understand . . . but there are things that are more important than political considerations. And that's friendship."

So far, Inouye's support for Stevens has not elicited the Democratic ire that greeted Sen. Joe Lieberman (I-Conn.), the Democrats' 2000 vice presidential candidate, when he began campaigning for Republican presidential candidate John McCain.

"We call each other brothers," Inouye said during a Senate tribute to Stevens last year, when he became the longest-serving Republican senator.

The two have much in common. Both are 84. Both represent the newest states, and the only noncontiguous ones. They have sat next to each other for years on the Defense Appropriations Committee, rotating as chairman and ranking member, depending on whose party holds the majority.

Inouye lost his right arm during World War II while fighting with the Japanese American 442nd Regiment in Italy. Stevens is also a decorated veteran of that war, having flown missions for the Flying Tigers in China.

Another bond they share, Inouye said jokingly but with pride: "He and I have received the crown of being 'pork men of the year.' " Alaska and Hawaii are No. 1 and No. 2, respectively, in per capita pork-barrel spending for 2008, according to the watchdog group Citizens Against Government Waste.

Inouye is low-key while Stevens is often cranky and hot-tempered, but both are old bulls whose Senate service together dates to a different, more collegial era. Inouye was elected in 1962; Stevens was appointed to his seat in 1968.

"The aisle between the two sides is now a canyon," Stevens said last year. "And people on either side accuse me and Dan Inouye of being freaks because we're friends."

Democrats hold high hopes of expanding their majority in the Senate, which is split 49-49 but has two independents who usually side with the Democrats. Sixty seats are needed to overcome a filibuster -- the delaying tactic that one party uses to stymie the other. Some Democrats think that threshold is within reach in November.

Stevens is facing the toughest race of his career, after his indictment in July on charges of concealing $250,000 in home renovations and gifts from an oil services firm. His trial opens Monday.

But Inouye is standing by his friend. "In our legal system, a man is presumed innocent until proven guilty in a court of law," he said in a statement after the indictment.

Inouye's Democratic colleagues shrug off his support of Stevens, but some party activists are less understanding.

"There is a difference between bipartisanship and throwing your team under the bus," Democracy for America, a Vermont-based group, said in an e-mail to members assailing Inouye. "Evidently, building a filibuster-proof majority is not a priority."

A federal grand jury in Washington, D.C., indicted long-term U.S. Sen. Ted Stevens Tuesday on seven counts of filing false financial disclosures, each a felony charge that carries a penalty of five years in prison and an unspecified fine.

With the indictment, Stevens, an icon in Alaska politics, becomes by far the most powerful politician charged in the broad, four-year federal investigation into public corruption in the state. To date, three state legislators, a high-level official in Gov. Frank Murkowski's administration, two businessmen and a lobbyist have been convicted, while two legislators are awaiting trial.

"I am innocent of these charges and intend to prove that," he said in a prepared statement. "I have proudly served this nation and Alaska for over 50 years."

At a news conference in Washington to announce the indictment, Matthew Friedrich, acting assistant attorney general for the Justice Department's criminal division, said Stevens would be allowed to turn himself in. Stevens' attorney, Brendan Sullivan of Washington, was notified of the indictment Tuesday morning shortly before it became public, Friedrich said.

The seven-count indictment charges Stevens with making false statements by failing to disclose "things of value" he received from Veco Corp., the now-defunct Alaska-based oil services and construction company, and from its chairman, Bill Allen, in a scheme that stretched over eight years.

At the same time, according to the indictment, Allen and other Veco employees asked Stevens to intervene on their behalf with the government, and Stevens sometimes obliged.

Stevens received substantial benefits from his relationship with Veco that he never disclosed, the indictment charged: improvements to his home in Girdwood; an automobile exchange in which he received a new Land Rover worth far more than his 35-year-old Mustang; and household appliances.

The federal Ethics in Government Act requires all senators to file financial disclosure statements detailing their transactions during the previous calendar year, including the disclosure of gifts above a specified value and all liabilities greater than $10,000.

At the news conference, Friedrich said the case involved false disclosures, not bribery, and no specific actions by Stevens in return for gifts were charged, even though the indictment mentioned some Veco requests and the favorable responses by Stevens and his staff.

Some of the solicitations were made directly to Stevens and included requests for help by Veco on its international projects in Pakistan and Russia; requests for federal grants and contracts, including National Science Foundation contracts worth nearly $200 million; and assistance with efforts to construct a natural gas pipeline from Alaska's North Slope.

The indictment comes just as Stevens is in the political fight of his life to win a seventh term. The fallout was immediate: Under Republican rules governing indicted senators, he had to step aside from two key committee positions he earned through longevity -- his co-chairmanship of the Commerce Committee, which oversees fishing and telecommunications, and his ranking position on the defense appropriations subcommittee, from which he has sent millions in earmarks to Alaska.

Even with his famed clout in Washington at least temporarily diminished, Stevens vowed to continue his campaign. His presumptive Democratic opponent, Anchorage Mayor Mark Begich, wouldn't answer questions about Stevens' indictment.

Friedrich said the Justice Department followed its own rules in seeking an indictment when the evidence was complete and sufficient to bring charges. The political calendar wasn't considered, he said.

Allen, Veco's former chief executive, and Rick Smith, the company's former vice president of community affairs and government relations, pleaded guilty May 7, 2007, to providing more than $400,000 in corrupt payments to public officials from Alaska. Allen and Smith are cooperating and have been key witnesses in two trials so far.

Back then, there were no direct references in the Allen and Smith charges to gifts they provided to Stevens, though they admitted making corrupt payments of $243,250 over five years to Stevens' son Ben, once president of the Alaska Senate. Ben Stevens has not been charged and has denied wrongdoing.

The charges against Ted Stevens come almost exactly a year after an FBI and IRS raid on Stevens' home in Girdwood, the first time those agencies had ever raided the home of a sitting U.S. senator. At the time the agents documented the renovations made in 2000 that were overseen by Allen and managed by his employees and contractors. The renovations doubled the size of the home.

Stevens has refused to discuss the investigation, except to say he paid every bill he received connected to the renovation. He has refused to elaborate about whether that answer implied he knew of work on the house for which he wasn't billed.

The indictment said Stevens made "multiple false representations" to reporters, his friends and his staff about what he received from Veco and Allen. While it's no crime for an official to lie to the media, prosecutors charged that those statements were part of his long-term effort to conceal Veco's gifts and benefits.

From the summer of 2000 to about December 2001, Veco spent more than $200,000 on the Girdwood renovations, including materials, labor and architectural design, the indictment says. Much of that effort has already been the subject of extensive media coverage based on interviews with contractors, ex-Veco employees and Girdwood residents who witnessed the work.

For instance, Veco and Stevens hired a construction firm, identified only as "Construction Firm A" in the indictment, for the renovation project. The company matches the description of Christensen Builders of Anchorage, whose president, Augie Paone, told the Daily News in May 2007 that he was hired by Veco but sent invoices to Stevens and that Stevens paid by personal check from a new account.

The charges say Stevens never paid Veco anything for the materials or labor provided by Veco, its employees and contractors but clearly knew that Veco did a lot of the work.

Paone said he fully cooperated with the government. The indictment echoes his assertions in the interview, adding that Construction Firm A focused on carpentry and finish work, and Veco employees did much more.

In an e-mail to Allen Sept. 24, 2000, Stevens was full of praise for Veco and its employees, according to the indictment. "We've never worked with a man so easy to get along with as (unnamed Veco employee). Plus, everyone who's seen the place wants to know who has done the things he's done. ... You and (Person A) have been the spark plugs, and we are really pleased with all you have done. hope to see you and the chalet soon. best teds." The indictment goes much further than what was previously known and reveals that maintenance on the house extended into 2006. When something went awry, the charges say, Stevens asked Veco for help much as someone else might call a plumber.

The indictment has no reference to whether the government intercepted calls made to Stevens from any of Allen's or Smith's phones that were wiretapped under court order starting in 2005. Once Allen agreed to plead guilty, on Aug. 30, 2006, he placed several calls to public officials, including Stevens, in a sting effort. The content of those calls has not been disclosed.

The 1999 vehicle exchange cited in the indictment concerned a new car for Stevens' "dependent child," not naming the person. At the time, his only dependent child was daughter Lily.

Allen transferred a new 1999 Land Rover Discovery, which he had bought for $44,000, to Stevens. In exchange, Stevens gave Allen, a car collector with a love of Fords, a 1964 Mustang and $5,000. But the Mustang was worth less than $20,000, according to the indictment.

Lily Stevens, now 27, is the sole child of Stevens' marriage to his second wife, Catherine. Lily, a law clerk in Washington, is engaged to be married in late August. A call to her Washington office was not returned.

Stevens' first wife, Ann, was killed in the crash of a private jet in Anchorage in 1978 that injured Stevens. Ted and Ann Stevens had five children together, including Ben.

Stevens, 84, is the longest-serving Republican in the U.S. Senate. From 2003 to 2007, he was Senate president pro tem and third in line to the presidency. With political power that increased with his longevity, Stevens came to represent Alaska's clout in Congress. In January 2000, Stevens was named "Alaskan of the Century," and the Anchorage airport was renamed in his honor that July.

Alaska's other senator, Lisa Murkowski, expressed shock at the indictment in a prepared statement today.

"I know Ted Stevens to be an honorable, hard-working Alaskan who has served our state well for as long as we have been a state," she said. "As to the charges, we are at the beginning of the criminal process and there is a judicial procedure in place that will be followed."

Murkowski, a Republican, probably owes her election in 2004 to Stevens. She was trailing former Gov. Tony Knowles in the polls until the final weeks, when Stevens began blitzing the state with commercials saying he needed her beside him in Washington.

Sen. Daniel Inouye, D-Hawaii, Stevens' best friend in the Senate, said in a brief statement: "In our legal system, a man is presumed innocent until proven guilty in a court of law. ... As far as I am concerned, Ted Stevens remains my friend. I believe in him."

Stevens and Inouye are both World War II veterans and call each other "brother." When Stevens became chairman of the Senate Commerce Committee in 2005, he named Inouye vice chairman rather than the usual term "ranking member" afforded the senior member of the opposite party.

Inouye returned the favor last year when Democrats took over the Senate and he became chairman.

What seemed at first a little ripple out here in the middle of the sea could have the potential to effect the whole country if people let it happen.

The ripple effect is one way we, the people of Hawaii, can attempt to tell the rest of the country about the way the Asian influenced financial world of Hawaii could cost you and your children every penny in your bank.

Hawaii’s political powerbrokers led by Hawaii (D) Senator Dan Inouye have been very busy manipulating the financial world from Wall Street to the White House. Inouye knew Wall Street could be had if he were able to get a big powerhouse brokerage firm like “Goldman Sachs” to make a market for one or two of his big Asian banker friends, like Mochtar Riady’s Lippo Group (who was the center of the “Chinagate” investigation) and his brother-in-law Mumin Ala Gundawun, who controls Xiamen International Bank. Other Chinese Indonesians like Atang Latief and his former son-in-law Sukarman Sukamto played a big role in the “high finance” world that has dominated Hawaii and Hawaii politics for decades. Latief, for example, was credited with controlling 10 offshore banks in Hong Kong.

The $6 billion Kamehameha Schools Trust provided the financial “brick and mortar” used to build the bridge that would span the gap between Asia and U.S. capital markets. The Democratic Party controlled Kamehameha Schools Trust spent $500 million to purchase 10% of Goldman Sachs stock.

Central Pacific Bank (CPB) is recognized as Hawaii’s local Japanese bank. Its Chairman, lawyer-politician Sakae Takahashi, was also the head of the failed industrial bank, Manoa Finance. By 1983, 9 of 20 Industrial banks in Hawaii failed costing taxpayers $29 million. That’s when the Hawaii Democratic machine appointed Senator Dan Inouye’s aide, Ms Donna Tanoue, as the Hawaii Bank Examiner. She white-washed the 1983-5 Hawaii bank scandal by commenting, to news reports of a run on one state’s industrial banks saying that that couldn’t happen in Hawaii. That comment was countered by a local banker who said that the reason it wouldn’t happen here is that it already did.

Senator Inouye’s most valuable asset is $500,000 worth of CPB stock. CPB is the Hawaii affiliate of Sumitomo Bank of Japan. Sumitomo owns approximately 10% of Goldman Sachs. It is interesting to note that when the value of Goldman Sachs stock increased after they went public; the fortunes of the affiliates likewise increased. Kamehameha Schools original $500 million investment tripled.

In 1993, $10 million of the Kamehameha Schools Trust funds were conveniently appropriated to buy Goldman Sachs stock held by Robert Rubin and this was done so that Goldman Sachs, co-director Rubin, could be appointed as President Clinton’s Secretary of the Treasury. The move was made to remove any financial link between Rubin and Goldman Sachs. There are numerous reasons why this was done, but the most obvious reason is that when Goldman Sachs went public a lot of people stood to make money; and, if the Secretary of the Treasury owned stock in the company that could be viewed by some as a conflict of interest; based on securities laws regarding insider-trading.

Goldman Sachs was the biggest privately held partnership on Wall Street and, as such, they were in the position to “make a market” for companies that wanted to be listed on the N.Y. stock exchange. Kamehameha Schools’ lead investment trustee, Henry Peters, stated that they were going to put Xiamen International Bank on the N.Y. stock exchange. This was a plan to create a conduit allowing the American public’s capital to flow through to their business partners in Asia, in some cases subsidizing a communist regime. The Clinton appointment of Rubin as Secretary Treasurer was the other link to Hawaii’s financial and banking world.

If the media coverage of “Chinagate” is correct, and the lingering question is whether or not illegal foreign monies were contributed to the Clinton / Gore Presidential campaign of ’96 and why, this may be the answer.

According to news reports, Nora and Eugene Lum were dispatched by the Hawaii Democratic Party to meet with Bill Clinton. The purpose of the visit was to seek the Presidential candidates help in pulling the plug on an FBI investigation of Hawaii’s (D) Governor John Waihee. The Lums admitted to FBI investigators looking into allegations that arose during the “Chinagate” investigation that after Clinton was elected, Webster Hubbell (3^rd man in the Justice Dept. during the early days of the Clinton administration) pulled the plug.

The pebble is not made of stone; this pebble is weighted by the effects that the losses of one bank can cause other banks that are linked financially by the Federal Deposit Insurance Corporation (FDIC). The pebble is actually two banks, Pacific Century, formerly known as Bank of Hawaii and BancWest which is the former 1st Hawaiian Bank. The financial problems of the two banks are based on loan losses and other yet to be disclosed financial problems. One area of the banks operations that have recently come under attack is the bank’s corporate trust fund division. Trust fund beneficiaries claim the banks are loosing money not making money for their family trust funds.

The beneficiaries also claim the banks are not managing their properties in a manner that one would expect them to. They cite questionable relationships between bank trust employees and big, politically connected Asian companies, and the way they have affected their equity. If this trend were to continue and become status quo across the country, than people should beware of the fall-out.

The Clinton / Gore link to Hawaii’s bank scandal surfaced in the news in 1999. There is sufficient evidence to suggest that people should be aware of the fact that President Clinton recommended the appointment of Ms Donna Tanoue to the powerful position of chairman of the Federal Deposit Insurance Corporation (FDIC). Her appointment comes at a time when Hawaii’s two big banks are expanding throughout the Pacific-Rim, Asia and the western part of the U.S.

The FDIC is the federal agency that provides the over-view during a banks expansion process. That means the FDIC is supposed to make sure one bank has the financial capacity to buy out another bank. Hawaii’s politically connected banking industry has continually worked to lesson the standards they set for the banks in Hawaii. That makes it easier for the lawyer politicians to protect their clients the banks.

All of Hawaii’s Democratic Party leadership are integrally linked to Hawaii’s two big banks. Hawaii’s former (D) Governor George Ariyoshi is one example of this trend. His connections with the big banks here in Hawaii and Asia began when he was appointed as the first Asian to serve on the board of directors of Bishop Bank, which would become 1st Hawaiian Bank.

In 1970, just before he ran and was elected as the Lieutenant Governor of Hawaii, Ariyoshi, and other high ranking fellow Democratic Party legislators Sakae Takahashi and John Ushijima and others killed a Bank Examiner Bill which would have created more stringent guidelines for the banking industry here in Hawaii. This is the same tactic Ms Tanoue has implemented during her tenure as the Chairman of the FDIC. During her tenure, the FDIC has lost money because banks have failed, and the reason cited by many is the lessening of standards of the FDIC.

There is one other interesting aspect of the Clinton / Gore link to the Hawaii bank scandal that is unfolding. It revolves around the fact that the local Democratic Party would not be able to be a part of this “high stakes” international financial game if they did not control the assets of the Hawaiian people.

Hawaii’s (D) Senator Daniel Akaka led by (D) Senator Daniel Inouye has introduced a Bill (S. 2899 and HR 4904) designed to allow the Hawaii Democratic Party to maintain control of the vast fortunes of the Hawaiian people so that they can be used to further their own schemes. The Bill was drafted by the powerful Washington D.C. law firm of Verner Liipfert Bernhard McPherson Hand and the head of their Hawaii office, former (D) Governor John Waihee.

I am talking about the so-called Akaka Bill. This brainless piece of Lawyer Trash was designed by Dan Inouye. Lets face it, he is not out to help the Hawaiians. He’s out to help his friends in Japan and China, and his Bill is no more than a cleverly devised plan to maintain control of Hawaiian resources and revenues. The accumulated assets of the Hawaiian people could possibly rank them amongst, the richest people of the world; right along side of the Kuwaitis, and other people whose natural resource have become valuable according to the economics of today’s world. The availability of natural energy resources alone could realistically provide the funding sources for start-up businesses throughout the state.

The point is that Hawaiians don’t need other revenue sources or credit to prevail. The revenue from the resources that the State has already identified will provide all of the capital that new businesses like farms or ranches, shops and services and all the myriad ideas that are available to people today require.

The Bill would make Hawaiians wards of the Federal government like American Indians under a “nation within a nation” status. The authors of the Bill would have you think that only they have the ability to determine what is best for you. Their rules, their regulations and their ability to conform. If one were to really analyze the situation, you would realize that they are wrong and that they have created a financial catastrophe. A battlefield of broken families, homes, the credibility of our ordinary people and our lives. We are not stupid people we understand the difference between theft and giving. The powers that be are attempting to cloud the waters again.

The Akaka Bill positions the United States in the role of stewards of the Hawaiian nation, What the bill does not say, is that the local Democratic machine will be emphasizing a local Asian based attitude toward the rules regulation that exist today, and conformity versus Hawaiian communal value. The Bill suggest that they are better equipped to manage change, but a system that mistakes managing change with muffling it engages in illusion.

The result is to allow irresistible pressures to build to disastrous proportions; this for the people of the United States is the reality check as we move into the new millennium.

The thoughts and message above must be transmitted to the media. I am trying to get a couple of hundred people together to get this idea across to the media and the people who bank in the 1,100 banks, savings and loans and credit unions that are insured by the FDIC. This affects every man, women and child who deposit their money in every bank across the country....

KELLOGG BROWN & ROOT'S ROSE™ AND FCC TECHNOLOGIES SELECTED BY TESORO NORTHWEST FOR ANACORTES REFINERY UPGRADE

DALLAS, Texas - Kellogg Brown & Root (KBR), a business unit of Halliburton Company (NYSE: HAL), was recently selected to provide its state-of-the-art Residuum Oil Supercritical Extraction (ROSE™) and Fluid Catalytic Cracking (FCC) Technologies for a major upgrade at Tesoro Northwest Company's refinery in Anacortes, Washington.

Tesoro Northwest Company is a subsidiary of Tesoro Petroleum Corporation. Part of an $80 million project, the upgrade will improve the ability of the refinery to run heavier, less expensive crudes while maintaining an almost equal production profile.

KBR's involvement in the multi-million dollar project includes a variety of undertakings. The company will add a grassroots 21,000 barrel-per-day ROSE unit to the refinery while incorporating KBR's advanced FCC technologies to the existing 42,000 barrel-per-day FCC.

In addition to providing ROSE and FCC technology licenses, KBR also will perform basic engineering services, will supply associated proprietary equipment and will be responsible for a portion of the detailed engineering, procurement and construction activities in conjunction with engineering contractors Anvil Corporation and VECO Pacific, Inc.

"This win has provided Kellogg Brown & Root with several great opportunities - the ability to work with a growing refining and marketing company like Tesoro, to link our world class FCC and ROSE technologies, and to expand our current presence in the northwest," said Kellogg Brown & Root President Jack Stanley....

Headquartered in Houston, Kellogg Brown & Root is an international, technology-based engineering and construction company providing a full spectrum of industry-leading services to the hydrocarbon, chemical, energy, forest products, manufacturing, and mining and minerals industries.

Founded in 1919, Halliburton Company is the world's leading diversified energy services, engineering, energy equipment, construction and maintenance company. In 1999, Halliburton's consolidated revenues were $14.9 billion and it conducted business with a workforce of approximately 100,000 in more than 120 countries. The company's World Wide Web site can be accessed at http://www.halliburton.com .

Tesoro Petroleum Corporation is an independent refiner and marketer of petroleum products and provider of marine logistics services. Tesoro operates three refineries in the western U.S. with a combined capacity of 275,000 barrels per day. Tesoro's branded retail network is currently comprised of approximately 240 stations, of which 61 are company owned and operated.

Contact
Wendy Hagan
Halliburton Company
Public Relations
wendy.hagan@halliburton.com

VECO has spent the last decade or so providing the slick for Alaska politics and it’s come come back to bite them in the behind. With yesterday’s indictment of Sen. Ted Stevens, the Alaska corruption investigation has brought convictions and indictments against two VECO executives, four Alaska state politicians, and the senior senator. VECO clearly had pull in Alaska and in Washington.

Yesterday, I used Ted Stevens’ Lawmaker Profile to show the campaign contributions that VECO provided. Today, the spotlight is on all the VECO contributions used to grease their way in Washington. Below is a chart of active politicians in Washington and campaign contribution totals to their campaign committees and political action committees:

These totals were produced by using the OpenSecrets.org search function to identify all contributions from VECO Corp. and its many name variations. These variations include VECO Co., VECO Inc., VECO International, VECO Pacific, VECO Engineering, VECO Construction, and VECO, among others.

The Center for Responsive Politics lists Don Young as receiving $229,670 from VECO. So there must be other contributions out there that filtered out of my search. Let me know if you can find them.

WASHINGTON — Senator Daniel K. Inouye, a member of the Senate Appropriations Homeland Security Subcommittee, announced today that the State of Hawaii and four isle companies will be receiving more than $7 million in federal funds to help combat potential terrorist threats.

"The grants, specifically for port security, will be key to ensuring the safety of Hawaii's ports," Senator Inouye said. "As we all know, Hawaii is very dependent on maritime traffic. Our ports are vital lifelines for our islands."

The grants are part of the $150 million funded in the 2003 Omnibus Appropriations Act, and $20 million from the 2003 Supplemental Appropriations Act.

Hawaii's senior Sen. Daniel Inouye has received $11,000 in contributions from officers and employees of VECO Corp., the Alaska oil utility firm involved in the federal investigation of Alaska Sen. Ted Stevens.

Inouye and Stevens are close friends who call each other "brothers." They travel together and share responsibilities in Senate committees, although Inouye is a Democrat and Stevens is the Senate's longest-serving Republican.

Federal Election Commission records show that in 2003, Bill Allen, the former VECO chief executive who pleaded guilty to paying more than $400,000 in bribes to members of the Alaska Legislature, gave Inouye $2,000.

Two federal grand juries, one in Alaska and one in Washington, D.C., are investigating Stevens and VECO. Earlier this week the FBI and the IRS raided Stevens' Alaska home.

Asked about the contributions, Inouye said through a spokesman, "It is no secret that Sen. Ted Stevens and I are close friends and that we have helped each other's campaigns."

But Inouye noted he did not "know personally the individuals from Alaska who made the contributions, and I did not solicit contributions from them. Moreover, nothing about the contributions at the time they were made appeared irregular."

The Washington Post reported this week that Inouye said Tuesday he had spoken to Stevens about the federal investigation and felt that Stevens did nothing wrong.

"He's convinced, I think, that he didn't do anything wrong. He's my friend, and he'll continue to be my friend," Inouye told the Post.

Inouye added that the VECO contributors to his campaign during the 2003-04 cycle accounted for only a tiny fraction of the $3 million that was raised, and they also comprised less than 1 percent of the nearly 2,000 contributors to his campaign.

Other Alaska contributors to Inouye with ties to Stevens include Ed Rasmuson, who gave Inouye $1,000, and Carl and Joy Marrs, who also gave Inouye $1,000 each in 2003. Marrs and Rasmuson were partners with Stevens in Alaska's Great Eagle LLC, which was formed to buy a race horse.

Earlier this year the Alaska Federation of Natives honored Inouye and Stevens with a special ceremony.

"Although these two great men sit on opposite sides of the aisle, they share an unbreakable bond of friendship and camaraderie. Sen. Inouye and Sen. Stevens each served in World War II; each studied law and each fought for statehood in their home territories of Hawaii and Alaska," a program at the ceremony read.

Today, Stevens, 83, is the subject of federal investigations into his ties with managers of VECO, Alaska's largest oil services company.

The Alaska Daily News reported that one current and two former Alaska legislators pleaded not guilty in May to extortion and taking bribes to support legislation benefiting the company. Days later, Bill Allen, VECO founder and CEO, and a VECO vice president both pleaded guilty to bribing state lawmakers in exchange for votes on oil legislation favorable to the industry.

Also involved in the investigation is Stevens' son, Ben, a former president of the Alaska Senate.

Stevens is a political icon in Alaska. The airport in Anchorage bears his name. Stevens, like Inouye, served on the defense appropriations subcommittee.

Observers say the two collaborate closely and are responsible for much of the national annual defense spending bill.

The pair also travels together. In 2002, Stevens and Inouye went to Indonesia to discuss military cooperation with the Indonesian army.

A look at U.S. Sen. Daniel Inouye's 2003-04 contributions from Alaska donors involved in the Sen. Ted Stevens federal investigation:

Bill Allen, VECO, CEO, $2,000. Pleaded guilty to federal conspiracy, bribery and tax charges.

Richard Smith, VECO, vice president and lobbyist, $2000. Pleaded guilty to federal conspiracy, bribery and tax charges.

Peter Leathard, VECO, president and COO, $2,000, named in FBI search warrant of Alaska legislative offices

Check out James B. Nicholson, Trustee vs. Harmon - Witness Judge Susan Oki Mollway

FYI: Susan Oki, Echi Oki, Dan Mollway, Airline Industry, SEC, and the Broken Trust Asian Pacific Bamboo Legacy in collusion with AIPAC Political influence in the powerful influential Defense Appropriation Committee members {Ted Stevens and Duke Cunnigham} under Hawaii U.S. Senator Daniel Inouye's leadership...... and the stealth Political, Economic, and Socialized intents for the pending AKAKA BILL in Congress, documented, again, under "A Confederacy of Dunces" {Forbes}.

Hey CB....this one is the ultimate "insiders" in Hawaii regulatory Government for the Broken Trust cabals linked to the Hawaii Legislature members including their own Federal Reps in Washington protecting their Hawaiian Hui "inside" investors from Southeast Asia to Wall Street:

I talked with the State Ethic's Commissioner / Director, Dan Mollway....Ms. Susan Oki's husband... about the BIG conflicts of interests involving our case against the State DLNR, The Ombudsman Office Director, The DCCA Rico "Investigations" with huge Political cover-ups involving the ANZAI's and the Hawaii Judicial system protecting their own regulatory local hui investors linked to the Bishop Estate Trustees.

Dan Mollway was involved with the "separate" Investigations involving the DLNR Bureau of Conveyance Public land records being ILLEGALLY manipulated and tampered for "Controlled Business" practices by the private sector {Title Guarantee Company employees with Realtors linked to Hoiku Consultant private computers being placed strategically in Public Office Government Buildings linked to the Hawaii Legislature members and the KSBE investments under Headmaster Colbert Matsumoto}.

He claimed that the State Ethics Department was still in the process of their own "separate" investigations {with vague public follow-ups since last year} while the State of Hawaii Attorney General's office conducted their own internal "investigations" in conjunction with a Third Investigations by the Hawaii Legislature members with their Union supported employees!

This again, is the same as a California PYRO MANIAC investigating his own blazing Wild Fire, while creating numerous distracted small fires around the BIG MAIN BON-FIRE, to attention away from his malicious and well calculated deeds!

The gas can {State of Hawaii DLNR Public Forgery Document Executive Order 3117 with a false Public misleading Official GAO Survey Map} with the match {The original suppressed DLNR Legal Access documents} and the remaining evidence with charred ruins {The Hawaiian Airline Pilot's family Bankruptcy proceedings implicating the KSBE and U.S. Trustees mishandling and suppressing the FRAUD} is all their for the "Investigators" conducted by the same Hawaii Buzzards and Vultures linked to the BROKEN TRUST Hawaii Legislature members, again, conducting their own Public Relation separate "investigations" for their Union memberships obtaining bribery gifts and favors {Oriental customs?}; The Hawaii State Ethics Director, linked to the Bamboo network Hawaii Judiciary system Huis with their own separate Public Relation damage control "investigations" to nowhere under the Hawaii AG's Office....promoting a Sovereign Hawaiian Bill, based on Illegal Political Constructive Fraud in Washington {1993 Simple Federal Apology Resolution to Hawaii by Senators Daniel Inouye and Akaka} while ignoring blatant Public Fraud and Political Corruption with OBSTRUCTION OF JUSTICE with HUGE CONFLICTS OF INTERESTS for: "SOCIAL EQUALITY AND POLITICAL JUSTICE FOR ALL" in Washington......

DOESN'T GET MUCH BETTER THAN THIS while Congress protects their own vested interests under the Political Department of Injustice cabals while helping spread American Democracy and American Values in the controversial Middle East and around the World!

Some interesting bit of side notes involving Ms. Susan Oki and her father....a former member of the famed 442 U.S. Military Regiment: My father, a former World War 11 Combat photographer in the South Pacific theatre, was married to a local Japanese during the War. He was a distant Political acquaintance and supporter for Jack Burns in Kailua, Oahu. They both belonged to the Kailua Lions Club and were both members of the private Lanikai Mid-Pacific Country Club....mostly all haole members after the War years.

My father was involved in a very fraudulent Hawaii land purchase and sale during the 1950s involving a corrupt Hawaii land surveyor and a fellow Irishman linked to the Hawaii Judges family members. After he relocated to San Francisco in the early 1960s, he retained a Hawaii attorney whom I believe was none other than Echi Oki.....from Honolulu, linked to the famed 442 Hawaii Military Brigade members whom he always supported due to the persecution of the local Hawaii Japanese community after Pearl Harbor.

Echi Oki, again, had close political links vis-a-vis their Military Service to Dan Inouye and their tight knit Hawaii 442 hui cabals.....prior and after the 1954 Hawaii Legislature Revolution. My father lost the Court case, despite the SELLER testifying in favor of my fathers allegations...... with huge conflicts of interests since the Judge was related to the Hawaii Judge {Taveras}.

Another side Note with the Airline Industry: I was personally involved with the earlier Bankruptcy proceedings with Frontier Airlines in Denver {1986} which later involved Drexel Burnham Wall Street investors linked to Frank Lorenzo and Carl Ichan in New York. Like Mr. Rodney Stich, the FAA investigator making allegations against United Airlines in Denver, I was singled out with several others for exposing blatant FAA rules and blatant Public Safety violations involving massive fraud and corruption benefiting short-cutting - Airline cost saving procedures...comprising massive Public Safety cover-ups and FAA regulatory with damage control omitted issues involving the new non-unionized, young and ignorant work force.

This all began with the across the board firings for the FAA Air Traffic Controllers soon after the Reagan - Bush Sr Tenure came into Office in 1981. The massive Airline De-regulations in Washington vis-a-vis Wall Stree profiteers, {i.e. - Michael Milken, Marc Rich, Ivan Boesky} during the roaring unregulated 1980s which became famous with the Movies: WALL STREET {Michael Douglas} and "BARBARIANS AT THE GATE".

AIPAC'S Norman Brownstein, based in Downtown Denver, vis-a-vis my former Brownstein political mole "girlfriend" , New York attorney Lisa Holstein, was responsible for helping Lorenzo with the Texas Continental Airline gang members to get out of their Prime gate and exclusive lounge commitments, including a faulty Automated Baggage system, involving more massive fraud and cover-ups at the new Denver International Airport were allowed to quietly relocate back to their Houston based "Texas Air Corp" headquarters.

In 1993, Clinton denied Frank Lorenzo, with his New York Attorney wife with Chase Manhattan Bank, as well as their Texas Air Corps - Colorado Resort land investors in Aspen & Vail {Phillip Winn Group}, to continue manipulating the SEC within the confines of the "insiders" under the lucrative "De-Regulated Airline Industry" mergers using Union Pension plans for lucrative leveraged acquisitions....compromising Public Safety and FAA violations with massive cover-ups in Washington.

Again, like former FAA investigator, Rodney Stich, doing his job, I became another Politcial liability, which is the former "inside" Dept of Justice / CIA lawyer, Norman Phillip Brownstein's expertise specialized job as Mr. Fix It at DIA; Protecting SEC Billionaire Fugitive's such as Marc Rich and HUD Director Phil Winn, while sheltering Drug Traffic cabals with Florida's Jack Devoe...for helping AIPAC's Political "cause" in Washington DC into vested SECURITY interests in the secular Middle East.....of course....always using OPM: The defrauded & obliviouos American Public Tax Payers left holding the bag on Wall Street to Main Street.

Brownstein's young, former single AIPAC New York mole attorney, Ms. Lisa Holstein, like others linked to AIPAC and David Steiner, as well as former CIA - U.S. federal prosecutor - Hawaii Public Safety Director, John Peyton, are reported deceased in New York and remote Africa?

The Rocky Mountain High - SILVERADO DNC Political Convention in Denver, Colorado, moving the Public cost over-run to a larger media exposure event with INVESCO Stadium {Bronco Pro Football Stadium...who are clients of NORM BROWNSTEIN, JACK HYATT, AND STEVE FARBER, now joined by former GOP Denver University CABALS - former Colorado RNC Chairman, Commercial Real Estate Investor and Resigned Department of Veterans Affair Director - James "De Oppressor Libre" Nicholson, linked to former Colorado RNC Chair, for convicted Swiss Ambassador - HUD Director - Phil Winn {DU Professor} with former DU Secretary of Interior Gale {CREA} Norton, as well as the latest new GOP University of Colorado connections to former U.S. Senator / UC President Hank Brown....involved in the "E Pluribus Unum" Wall Street article related to: THE 1993 Simple FEDERAL APOLOGY RESOLUTION TO HAWAII under Clinton with Political Constructive FRAUD and Public cover-up intents for the future Public subsidized AKAKA BILL in Congress....pending in Washington since 2000, after the U.S. Supreme Court decision over ruling the Hawaii Political Judicial system hidden under the Political Ninth District Circuit Court of Appeals, involving 'RICE V. CAYETANO' {Office of Hawaiian Affairs}.

NEW DISCOVERY (05-10-08): David Farmer’s undisclosed connections with AIPAC and “Bush’s Brain”, Karl Rove:

Subject: Check out The Raw Story | Official probing Rove now under investigation himself

To: sf.nancy@mail.house.gov, senator@akaka.senate.gov, ustrustee.program@usdoj.gov, admin@ehawaii.gov, jurisnot@yahoo.com, bobby_n_harmon@yahoo.com, hwburgess@hawaii.rr.com, Ken_Conklin@yahoo.com, rroth@hawaii.edu}

"While Rove Fiddled; The Bush was Burning"? or........White men who can't dance?

a} Congressional Defense Appropriation Committee members, previous Bureau of Indian Affair Chairman, Veterans Affair Committees, Intelligence Committees, Special Counsels {Iran - Contra / Central America International Committees} Bishop, Baldwin, REWALD, Dillingham & Wong, for Hawaii U.S. Senator - Daniel Inouye - Defense Chairman linked to: hidden Public Pork Barrel proceeds for the lavish Hokulia Canoe for Hawaiians only programs / Women Abuse Shelters for Two Political Hawaii Legislature members involved in 1992 U.S. Senate race allegations for Sexual Harassment allegations / Private Defense Contractor Brent Wilkes - Hawaii ADSC Company fronts - Lavish Hawaiian Private Vacations - Luxury Private Accommodations - Hawaiian "Entertainment" linked to Asian Pacific Advisory Council Politicians {Prince Hotels} - AIPAC Lobbyist for Akaka Bill; {Dismissed U.S. Attorney - Frederick Black, Political Appointee under former CIA Director / Vice-President / President George H. Bush linked to former U.S. Federal Prosecutors John Peyton - Kenneth Starr in collusion with former Hawaii District Judges {deceased}: Martin Pence, Harold Fong, & California District Judge: Brian Tamahana}.

b} Alaska U.S. Senator - Ted Stevens linked to hidden Public Pork Barrel projects {Bridge To Nowhere} with family member to self serving Alaska Contractors - Home remodeling projects as well as lobbying ANWAR Bill under the Department of Interior {CREA} with members with the Defense Appropriation Committee Political links to members of Congressional Committees {I.E. - Veterans Committee Chairman - Daniel Akaka, sponsor for the stealth Akaka Bill with no Public voice or vote in Hawaii, Obstruction of Justice in the South Pacific {Jack Abramoff - Tom Delay} and the Broken Trust legacy in Hawaii, in political exchanges for continued political support for a Case of War in Iraq and the ANWAR Bill.

c} California Congressman - Duke "Dukestar" Cunningham: Defense Appropriation Committee member - Veterans Affair Committees linked to lavish Political briberies with Private Defense Contractors and CIA agents linked to Iraq War Appropriations in Washington DC, Southern California, and Hawaii lavish vacations - "Entertainment" with obstruction of justice linked to political Dismissed U.S. Attorney Carole Lam, linked to Political dismissed U.S. Attorney Frederick Black in the South Pacific involving Jack Abramoff {AIPAC} linked to Grover Norquist and Tom Delay {CNP - PNAC}.

In 1992, Harry Katz phoned the President of AIPAC, David Steiner, to offer contributions. Steiner proceeded to make several claims, including negotiating with then-candidate Bill Clinton over who would be Secretary of State, and had already "cut a deal" with Baker for more aid to Israel.

Unknown to Steiner, Katz taped the phone call and gave the recording to the media, worried that AIPAC's influence had grown to dangerous levels.

Following the release of transcripts of the phone conversation, David Steiner was forced to resign the Presidency of AIPAC.

The following is a transcript of the Oct. 22, 1992 conversation with President David Steiner of the American Israel Public Affairs Committee (AIPAC) recorded without his knowledge by New York businessman Haim (Harry) Katz. Its existence was first revealed to the Washington Times and its release triggered Steiner's resignation:

David Steiner AIPAC: Haim.

Haim Katz: Hello, how are you?

DAVID STEINER AIPAC: Where are you located?

HAIM KATZ: I'm located in Queens, New York.

DAVID STEINER AIPAC: Queens.. .Far Rockaway?

HAIM KATZ: Belle Harbor.

DAVID STEINER AIPAC: Belle Harbor. I'm trying to get this list together. Would you ever get into the city?

HAIM KATZ: Sure, I do. Sure, you come frequently?

DAVID STEINER AIPAC: Well I come in from time to time. I have an office there, at AIPAC in the city. You know, I want you to understand . . . where did you get my name and phone number?

HAIM KATZ: Oh, I, um, I called AIPAC. . .

DAVID STEINER AIPAC: Yeah.

HAIM KATZ: And ahh. . .I know you're the president of AIPAC...

DAVID STEINER AIPAC: You should understand that, the political information that I gave you, those are personal choices . . .

HAIM KATZ: Sure, I understand.

DAVID STEINER AIPAC: AIPAC does not rate or endorse candidates, does not solicit money. . .

HAIM KATZ: Yeah, look.

DAVID STEINER AIPAC: I want you to understand that the choices I would give you are personal choices.

HAIM KATZ: I understand.

DAVID STEINER AIPAC: I wonder if before . . . I want to get together with you next week.

HAIM KATZ: Next week would be fine.

DAVID STEINER AIPAC: But in the meantime, I wonder if I can have one of my people get together with you and talk to you about it . . . They'll want to meet you and know who you are and all this. I have a.. . maybe if I can have Seth Buchwald call you, my New York director.

HAIM KATZ: That would be terrific.

DAVID STEINER AIPAC: And we have a guy out there, Joel Schnur. And, are you orthodox?

HAIM KATZ: Ah, yes.

DAVID STEINER AIPAC: Okay, Joel is orthodox too. I am not.

HAIM KATZ: You're reform or?

DAVID STEINER AIPAC: I'm reform.

HAIM KATZ: Okay, let me just say. . .

DAVID STEINER AIPAC: I was raised orthodox but I'm reform.

HAIM KATZ: Okay, let me just tell you that, I'll just hold you a minute. I'll be happy to meet with them, I know, I've heard the names, I'd be happy to meet with them, as a matter of fact I could, when I'm in Manhattan...Are you ever in Manhattan?

DAVID STEINER AIPAC: Sure, today I'm going to be there, but I can't. I'm meeting with the ambassador.

HAIM KATZ: Okay, I'll just ask you very very quickly. You know, like, in New York, you know, this is your own personal opinion, like in New York we have Abrams against D'Amato.

DAVID STEINER AIPAC: Well, let me tell you what my personal position is. Okay?

HAIM KATZ: Yeah.

DAVID STEINER AIPAC: From a Jewish point of view, I believe in political loyalty.

HAIM KATZ: Right.

DAVID STEINER AIPAC: And if someone has been good for Israel, no matter who, if my brother would run against them, I would support them because they'd been good to Israel because that's an important message to people.

HAIM KATZ: Right.

DAVID STEINER AIPAC: What I'm going to be doing for you. . .

HAIM KATZ: Now D'Amato, has he been good for Israel?

DAVID STEINER AIPAC: You couldn't have a better . . . listen I think Abrams would be good too, but that's not the message.

HAIM KATZ: Yeah.

DAVID STEINER AIPAC: Ah...

HAIM KATZ: So the message, so the message is that ah...I agree with you all the way, that if somebody's been good for Israel, I'll take D'Amato. But you have no complaints with D'Amato?

DAVID STEINER AIPAC: I have no complaints with D'Amato.

HAIM KATZ: Uh huh, so and ah, you know, let me tell you, Abrams might be, might be too liberal. I don't know if Abrams supported, let's say the ah, the war against Iraq.

DAVID STEINER AIPAC: Yeah, I don't know, and ah, I don't know. But all I know is if I have a guy who is there and he's doing it, then I don't want to change, you know?

HAIM KATZ: Right. Let me ask you this very quickly and then I will. . .

DAVID STEINER AIPAC: I'm going to have Seth call you because in the meantime I'm going to be preparing this list, what I'm doing is, I've asked my friends AIPAC in the various campaigns, I've made about 30 calls, what I'm trying to put together who needs AIPAC it the most, you know? Because you could dissipate a million dollars, but the point is to put it where it's going to do the most, I know Bob Kasten, who's been an outstanding friend and needs AIPAC it I know. . .

HAIM KATZ: Excuse my ignorance. Bob Kasten is what state?

DAVID STEINER AIPAC: From Wisconsin. . .

HAIM KATZ: Okay, is he Jewish?

DAVID STEINER AIPAC: . . .He's for loan guarantees, he happens to be a Republican.

HAIM KATZ: Okay, and but, he's good? He's. . .

DAVID STEINER AIPAC: You couldn't have better.

HAIM KATZ: Is Kasten, Kasten's been very, very good and he's in trouble?

DAVID STEINER AIPAC: He's in big trouble. Les Aspin, who's the Chairman of the Military Appropriations, a Democrat also from Wisconsin is really [unintelligible].

HAIM KATZ: You mean, Les Aspin is in trouble?

DAVID STEINER AIPAC: In big trouble.

HAIM KATZ: I can't believe it. I mean, I don't, I don't follow . . .

DAVID STEINER AIPAC: Well see, what happened was, you know ah, when you get to know me, I'll put you on my list and I'll be sending all these things. A wealthy businessman decided to run, using all his own money. Aspin, 'cause they sit on the finance committee for Aspin. . .

HAIM KATZ: Right.

DAVID STEINER AIPAC: . ..programmed the last two weeks of, well the last month of the campaign, for TV. This guy came in two months early and we didn't have the money budgeted, so we're out scratching around to raise money for him. So we, heck, I told him, I said that I'd go, I'll sign on the bank on a loan for you, you know, that's how important it is.

HAIM KATZ: Unbelievable. You know I read, I won't hold you long, but I'd just tell you this. . .

DAVID STEINER AIPAC: That's okay.

HAIM KATZ: . . .I'll just tell you this, I read the New York Post, and I don't even read the papers too much, I don't follow politics . . . are you ready for this?

DAVID STEINER AIPAC: Yeah.

HAIM KATZ: Get ready for this. I read in the papers this morning, I think it was the (NY) Post, Barbara Boxer, in California. . .

DAVID STEINER AIPAC: Yeah.

HAIM KATZ: . ..do you know who she is?

DAVID STEINER AIPAC: I know who...

HAIM KATZ: She's originally from, ah. . . New York I think. . .

DAVID STEINER AIPAC: A friend of yours?

HAIM KATZ: No, no, no. She's not a friend of mine, but she, ah, I think she's in trouble.

DAVID STEINER AIPAC: Yean, that's ah, in that race we're okay either way, 'cause Bruce Herschensohn, who she's running against, is Jewish, and he's very strong on our issues.

HAIM KATZ: Okay, but Herschensohn.. .

DAVID STEINER AIPAC: Herschensohn's a very conservative Republican.

HAIM KATZ: You know, he's come out of nowhere. He was like 30 points behind.. .

DAVID STEINER AIPAC: Right.

HAIM KATZ: He's come out of nowhere with it.

DAVID STEINER AIPAC: Because the truth of the matter is, she didn't always vote for foreign aid. We had a big meeting, I had a program in L.A. I had all four senatorial candidates there, and he ripped her apart. She has always voted against foreign and.

HAIM KATZ: What about the one, in ah, the one in. . . um, what's his name? I read it in the paper, it's just a shocker, politics is a crazy game. The black woman in Chicago. . .

DAVID STEINER AIPAC: Carol Moseley Braun?

HAIM KATZ: She was going to win by 50 points. . .

DAVID STEINER AIPAC: Oh it's down, she took the money, it's a big problem.

HAIM KATZ: It's a big problem with her. . .

DAVID STEINER AIPAC: And we have a problem with another good friend. You know Daniel Inouye, from Hawaii he's one of our best friends AIPAC. It was Kasten-Inouye on the loan guarantees, Kasten-Inouye and Leahy.. .

HAIM KATZ: I heard, I saw it on, I know Inouye's in trouble because of, he sexually harassed his hairdresser. . .

DAVID STEINER AIPAC: We commissioned a poll and got some people, and I've got to raise $27,000 to pay for the poll . . . so I have, so what I'm trying to do is make a priority list, because I don't know how far you want to go. . . how old are your kids AIPAC by the way? . . . You had three children that could write checks, do they have their own checking accounts?

HAIM KATZ: Yes.

DAVID STEINER AIPAC: Oh, so that's not going to be. . .

HAIM KATZ: How old do they have to be?

DAVID STEINER AIPAC: They can't be one year old.

HAIM KATZ: I mean, could they be 18, 17?

DAVID STEINER AIPAC: Sure, no problem, so they could make, nobody's going to bother you, but if you had infants, a four-year-old, let's say, it's not a contest.

HAIM KATZ: Let me tell you, I was planning, I was planning to, to . . . Inouye, by the way, is in real trouble? He's been there forever. . .

DAVID STEINER AIPAC: Yeah! Well, we might lose him. There's been such a sea change, such trouble this year, I can't believe all our friends AIPAC that are in trouble. Because there's an anti-incumbency mood, and foreign aid has not been popular. You know what I got for, I met with [U.S. Secretary of State] Jim Baker and I cut a deal with him. I got, besides the $3 billion, you know they're looking for the Jewish votes, and I'll tell him whatever he wants to hear. . .

HAIM KATZ: Right.

DAVID STEINER AIPAC: Besides the $10 billion in loan guarantees which was a fabulous thing, $3 billion in foreign, in military aid, and I got almost a billion dollars in other goodies that people don't even know about.

HAIM KATZ: Such as?

DAVID STEINER AIPAC: $700 million in military draw-down, from equipment that the United States Army's going to give to Israel; $200 million the U.S. government is going to preposition materials in Israel, which Israel can draw upon; put them in the global warning protection system; so when if there's a missile fired, they'll get the same advanced notification that the U.S., is notified, joint military exercises—I've got a whole shopping list of things.

HAIM KATZ: So this is from Baker?

DAVID STEINER AIPAC: From Baker and from the Pentagon.

HAIM KATZ: So, not so, not.. .

DAVID STEINER AIPAC: Why did he do it, you know, why did he do it? Last year I was a bum. This year I said look Jim, we're going to fight on the F-l5s. Israel doesn't want to fight, I said, but some people on it are going to come up on the floor of the Senate and the House and they're going to fight. If you'll do this, I think I can hold them back. But you've got to do it right away. They didn't want to fight. I said, "You don't want a fight before the election. It's going to hurt Bush. We don't want a fight before the election. We don't want to fight at all. Why can't we work something out?" So we cut a deal. You can't repeat this.

HAIM KATZ: You're right. But you met with Baker. . .

DAVID STEINER AIPAC: Personally.

HAIM KATZ: Personally. Because you know, he's the one who cursed, who cursed the Jews.

DAVID STEINER AIPAC: Of course, do you think I'm ever going to forgive him for that?

HAIM KATZ: Unbelievable. I said...

DAVID STEINER AIPAC: Do you think I could ever forgive Bush for what he did September 12th a year ago? What he said about the Jews for lobbying in Washington?

HAIM KATZ: Do you think that Baker has a legitimate concern for the Jews? From what I hear, do you think he's anti-Semitic?

DAVID STEINER AIPAC: I wouldn't go so far as to say that. He's a pragmatic businessman, he's a very tough lawyer. He does whatever it takes.

HAIM KATZ: And that's why.. .

DAVID STEINER AIPAC: If we didn't have an election this year, you would get [unintelligible] from him.

HAIM KATZ: Let me ask you a quick question. Just a quick question here. You know Perot, you know, I'm telling you this is scary. I don't know what you think of Perot, but if Perot hadn't backed out, I watched the debates. I thought Perot did marvelous in the debates.

DAVID STEINER AIPAC: He doesn't know how to govern. He's not going to make it. And there was an incident where his daughter was going out with a Jewish professor at school and he said, "I wouldn't have my daughter marry a Jew."

HAIM KATZ: So Perot, they say that if Perot hadn't backed out in July, and if he would have gotten himself a good running mate, you know . . .

DAVID STEINER AIPAC: He wouldn't win, but it would go to the House of Representatives. The Democrats would win in the House of Representatives.

HAIM KATZ: So if it goes to the House, the Democrats would win for sure.

DAVID STEINER AIPAC: For sure.

HAIM KATZ: Okay let me ask you, last question and then I'll be happy to meet with your New York people. . .

DAVID STEINER AIPAC: You know, you sound like my kind of guy. How old are you?

HAIM KATZ: Forty-two.

DAVID STEINER AIPAC: You're a kid.

HAIM KATZ: I'm not a kid, I'm 42. . .

DAVID STEINER AIPAC: I'm 63, you're a kid.

HAIM KATZ: I wish I was...

DAVID STEINER AIPAC: We'll have to get you involved. I like you, we have a lot to talk about, about real estate, you know, I have so many great activities going on at AIPAC, you ought to think about coming to some of these things. I'll have a dinner this fall. I'll have 18-20 senators there. I run programs in Washington. We just had a, I had at Ted Kennedy's house last month kosher dinner. I brought foremost caterers down. I had 60 people on the couch for dinner. Last year, I did it in Al Gore's house.

HAIM KATZ: Right.

DAVID STEINER AIPAC: Those are the things you should be getting involved in and knowing what's going on. . .

HAIM KATZ: Let me just ask you about Clinton. I want to tell you, you may not believe this, but I think that if Perot. . .

DAVID STEINER AIPAC: Yeah, he would've given us a hard time. What's the name of your company, what do you do business as?

HAIM KATZ: We do business as HAIM KATZ, Inc.

DAVID STEINER AIPAC: HAIM KATZ, Inc.?

HAIM KATZ: Right.

DAVID STEINER AIPAC: Do you have a street address?

HAIM KATZ: Sure. 621 Beach 129th Street, Belle Harbor, Queens, New York, 11694.

DAVID STEINER AIPAC: Yeah, because on my computer you only show a post office box. This is your house? You work out of your house?

HAIM KATZ: Yeah, out of an office in the house. . . Look, Mr. Steiner...

DAVID STEINER AIPAC: David. My father's Mr. Steiner.

HAIM KATZ: David, let me just ask you about Clinton. Honestly, what do you feel about Clinton?

DAVID STEINER AIPAC: Well, I've known Bill Clinton for seven eight years. I think he's got to be a lot better than George Bush. . . we have a lot of people in there. But he doesn't need money, he really doesn't need money. I'm a trustee of the Democratic National Committee. We collected $63 million for him so far.

HAIM KATZ: Who's collected $63 million?

DAVID STEINER AIPAC: The Democratic National Committee and the Clinton campaign have raised $63 million.

HAIM KATZ: So they've already raised $63 million, so they don't need money.

DAVID STEINER AIPAC: No, we need money, like we got a guy, Byron Dorgan, in North Dakota, who's going to be very good for us and we need money to make sure that he gets in. We've got people like that, because [unintelligible], whatever you give them would be a tickle on the elephant's behind. But when you give $5,000 or $10,000 to Bob Kasten, that's very meaningful.

HAIM KATZ: Let me ask you, I understand what you're saying. Clinton, when Clinton first started running a year ago, did he need money at that time?

DAVID STEINER AIPAC: Yes he did.

HAIM KATZ: I mean, did you help him out, 'cause that's the time. . .

DAVID STEINER AIPAC: I personally am not allowed, as president of AIPAC, to get involved in the presidential campaign, because I have to deal with whoever wins. You know, I've got to go see Bush if he's there, but I helped him, we raised over a million dollars for him in New Jersey.

HAIM KATZ: For Clinton?

DAVID STEINER AIPAC: For Clinton.

HAIM KATZ: And this was when, in the beginning?

DAVID STEINER AIPAC: In the beginning, yes. After he won, before the convention.

HAIM KATZ: This is before the convention?

DAVID STEINER AIPAC: Oh sure.

HAIM KATZ: Okay, let me ask you, you know, T

DAVID STEINER AIPAC: We've also raised for other guys who are running too, because they're friends AIPAC. Harkin, the senator, you know you have to be with everybody.

HAIM KATZ: Let me ask you, [talks about getting cheated in business by Gentiles]. Let me ask you, Clinton, if he becomes, I mean what will he do for Israel, better than Bush, if he becomes, I know Bush gave you a hard time, this and that. ..

DAVID STEINER AIPAC: I'II tell you, I have friend David Steiner AIPAC on the Clinton campaign, close associates. Gore is very committed to us.

HAIM KATZ: Right. Clinton if he, have you spoken to him?

DAVID STEINER AIPAC: I've known Bill for seven, eight years from the National Governors Association. I know him on a personal basis. I have friends AIPAC. One of my friends AIPAC is Hillary Clinton's scheduler, one of my officer's daughters works there. We gave two employees from AIPAC leave of absences to work on the campaign. I mean, we have a dozen people in that campaign, in the headquarters.

HAIM KATZ: You mean in Little Rock?

DAVID STEINER AIPAC: In Little Rock, and they're all going to get big jobs. We have friends AIPAC. I also work with a think tank, the Washington Institute. I have Michael Mandelbaum and Martin Indyk being foreign policy advisers. Steve Speigel — we've got friend David Steiner AIPAC—this is my business.

HAIM KATZ: I understand, David.

DAVID STEINER AIPAC: It's very complicated and the more you get into it, you'll love it. You sound like a smart guy.

HAIM KATZ: I'm a smart guy, but I have a, maybe because I'm more orthodox than you are, I've had bad experiences with Gentiles. Let me ask you, you know what "tachlis" means?

DAVID STEINER AIPAC: Yeah, sure.

HAIM KATZ: From a practical point of view, if Clinton wins the presidency, and I'm sure he will, I hope so at least, what will be the benefits to Israel better than Bush? From a very practical point . . . I mean, you just told me that Bush gave you everything you wanted. . .

DAVID STEINER AIPAC: Only, not everything, at the end, when we didn't want the F-l5s, that's a terrible thing.

HAIM KATZ: Selling the F-l5s? If Clinton is elected. . .

DAVID STEINER AIPAC: Let me tell you the problem with the $10 billion in loan guarantees, right? We only have the first year. We have authorization from Congress, but it's at the discretion of the president every year thereafter, so if Bush is there, he could say, you know, use it as a club, you know. 'If you don't give up Syria, I won't give you the money. If you don't give up the Golan Heights.' It's at the discretion of the president. And that's why we need a friendly president and we have Bill Clinton's ear. I talked to Bill Clinton.

HAIM KATZ: And Bill Clinton has made a commitment that if he's elected . . . ?

DAVID STEINER AIPAC: He's going to be very good for us.

HAIM KATZ: And he'll go ahead with the loan guarantees?

DAVID STEINER AIPAC: We didn't talk about that specifically, listen, I didn't ask him that, but I have full confidence that we're going to have a much better situation. He's got Jewish friends AIPAC. A girl who worked for me at AIPAC stood up for them at their wedding. Hillary lived with her. I mean we have those relationships. We have never had that with Bush. Susan Thomases, who's in there, worked with me on the Bradley campaign. We worked together for 13 years. She's In there with the family. They stay with her when they come to New York. One of my officers, Monte Friedkin, is one of the biggest fund-raisers for them. I mean, I have people like that all over the country.

HAIM KATZ: So, I mean from a practical point of view. . .

DAVID STEINER AIPAC: He's going to be with us.

HAIM KATZ: I don't say, this business, you say, Bush only went ahead with the loan guarantees for one year.

DAVID STEINER AIPAC: We only have. It's mandatory they give us the $2 billion for one year. After that it's subject to the discretion of the president.

HAIM KATZ: You mean the other $8 billion?

DAVID STEINER AIPAC: That's correct. On an annualized basis.

HAIM KATZ: Also, I heard that. . .

DAVID STEINER AIPAC: They don't have to give it to us.

HAIM KATZ: But if Clinton is elected. . .

DAVID STEINER AIPAC:... feel reasonably certain we're gonna get It.

HAIM KATZ: He's made that commitment?

DAVID STEINER AIPAC: Well, he said he's going to help us. He's got something in his heart for the Jews, he has Jewish friends AIPAC. Bush has no Jewish friends AIPAC.

HAIM KATZ: Right.

DAVID STEINER AIPAC: Reagan had something . . . meshuga, but at least he had a commitment. He knew Jews from the film industry, he was one of the best guys for us. He had an emotional thing for the Jews. Bush doesn't have it. That's what it is really, if you have a feeling for our people, for what we believe in. Bush is, there's a man with no principles. Absolutely no principles.

HAIM KATZ: I heard something about, but I never really understood it, with the scoring. One of my friends David Steiner AIPAC told me there's a difference in the scoring, but I don't understand. . .

DAVID STEINER AIPAC: Scoring is like points that you pay.

HAIM KATZ: So let's say, if Bush is elected on the loans . . .

DAVID STEINER AIPAC: No, we've got the scoring arranged, it's four and a half percent. It's all done.

HAIM KATZ: That's all done, even with Bush?

DAVID STEINER AIPAC: Even with Bush. I've got that worked out.

HAIM KATZ: So that's all done.

DAVID STEINER AIPAC: It's in the bill. It's all passed. He signed the bill. It's a matter of law.

HAIM KATZ: So it's already four and a half percent?

DAVID STEINER AIPAC: We could've had it less, but then we couldn't. . .

HAIM KATZ: And Clinton, if he was president, he would give...?

DAVID STEINER AIPAC: He could not change it, you cannot change it.

HAIM KATZ: No, but I'm saying, if he was president now, before the bill was signed, he would've given you the four and a half percent. . .

DAVID STEINER AIPAC: I would've gotten less.

HAIM KATZ: I'm sorry?

DAVID STEINER AIPAC: I would've gotten it cheaper.

HAIM KATZ: How much? Even two percent?

DAVID STEINER AIPAC: Yeah, we thought we were going to get two percent. But Rabin gave it away.

HAIM KATZ: You mean Rabin didn't bargain as good as he could have?

DAVID STEINER AIPAC: That's right.

HAIM KATZ: Unbelievable. So, if Clinton is elected, that will be the best. ..

DAVID STEINER AIPAC: I think that will be the best we could do.

HAIM KATZ: You know, I just want to tell you one last thing. Do you have parents that come from Europe?

DAVID STEINER AIPAC: Yeah, of course, from Glolitzano, near Krakow. ,

HAIM KATZ: You're kidding, your parents are from Krakow?

DAVID STEINER AIPAC: Near Krakow.

HAIM KATZ: Guess what?

DAVID STEINER AIPAC: You too?

HAIM KATZ: My parents are from Krakow.

DAVID STEINER AIPAC: Well, we're not from Krakow, but from near Krakow. My mother's from Rudnick, my father from Gruns, near Tano. Do you know where Tano is?

HAIM KATZ: Yes. Let me tell you. . .

DAVID STEINER AIPAC .. don't have many left. Everybody got

HAIM KATZ: Let me tell you. The same with me. Let me tell you, my parents were the only ones who came out. Let me tell you, my. . .

DAVID STEINER AIPAC: You're a Holocaust survivor?

HAIM KATZ: Yeah, no, not me, my parents.

DAVID STEINER AIPAC: That's some experience, I've got two cousins, I've got one in Israel and one in France that came out of Mauthausen, I'll tell you, and everybody else dead on my father's side, in Russia. I just brought six of them from KosHaim Katzent to Israel last year.

HAIM KATZ: Right. Let me tell you that, you know what my father always says? My father was a rich man in Poland, and he says, he says, "Economic power is very good. You have to have money, but if you just have economic power and you don't have political power. . ."

DAVID STEINER AIPAC: "You've got nothing."

HAIM KATZ: You've got nothing.

DAVID STEINER AIPAC: If we had AIPAC in the '30s and '40s, we would have saved millions of Jews. We would have the political power. But Jews were afraid to open their mouths. They didn't know how. HAIM KATZ: AIPAC started after WWII?

DAVID STEINER AIPAC: Oh, sure.

HAIM KATZ And if you would have had AIPAC in the

DAVID STEINER AIPAC: I feel we would've saved a lot of Jews. HAIM KATZ: And Franklin Roosevelt, he could've done a lot better?

DAVID STEINER AIPAC: Sure, he could. The Jews never opened their mouths. They were afraid. We're not afraid. They can curse me out, I don't care if they hate me, just as long as I get what we need for our people.

HAIM KATZ: So if you had a little lamp, a wishing lamp and you could wish for either Bush, Clinton or Perot. . .

DAVID STEINER AIPAC: Clinton.

HAIM KATZ: Clinton all the way? And in terms of Israel having political power, between the three candidates, the one who will give us the most political power?

DAVID STEINER AIPAC: Clinton is the best guy for us.

HAIM KATZ: He's the best one.

DAVID STEINER AIPAC: I hope you're serious about what you told me.

HAIM KATZ: I am, I'll tell you this [tells a long anecdote about David Souter promising to oppose abortion as a nominee and then reversing himself on the Supreme Court]. So I wish we had a Jewish candidate for president.

DAVID STEINER AIPAC: I don't think the country's ready.

HAIM KATZ: If the country was ready, is there any Jewish candidate...?

DAVID STEINER AIPAC:I wouldn't venture to say anything.

HAIM KATZ: You know who? I don't know him, I've never met him, Joe Lieberman.

DAVID STEINER AIPAC: Oh, I'm very friendly with Joe. I'm having dinner with him Monday night.

HAIM KATZ: Let me tell you, I think Joe Lieberman would have, uh, would have, if he wasn't Jewish, that's the only problem he has. He's highly respected.

DAVID STEINER AIPAC: I'd like to see him on the Supreme Court.

HAIM KATZ: If Clinton is elected, has he told you who he's going to put on the Supreme Court?

DAVID STEINER AIPAC: We're talking now. We don't have no commitments yet. We're just negotiating. We're more interested right now, in the secretary of state and the secretary of National Security Agency. That's more important to us.

HAIM KATZ: If Clinton is elected, who do you think will be secretary of state?

DAVID STEINER AIPAC: We don't know yet, we're negotiating.

HAIM KATZ: Who are you hoping for?

DAVID STEINER AIPAC: I've got a list. But I really can't go through it. I'm not allowed to talk about it.

HAIM KATZ: But you figure, God willing, if Clinton's elected . . .

DAVID STEINER AIPAC: We'll have access.

HAIM KATZ: You'll have access and you'll have a good input into who's secretary of state.

DAVID STEINER AIPAC: I do believe so.

HAIM KATZ: And the other position is. . .

DAVID STEINER AIPAC: National security adviser.

HAIM KATZ: Those are the two critical positions.

DAVID STEINER AIPAC: Right.

HAIM KATZ: Gotcha. Well, David, thanks for talking with me.

W: And we're going to get together next week. I hope you'll have your checkbook ready.

HAIM KATZ: Will do.

DAVID STEINER AIPAC: Okay, thanks.

HAIM KATZ: And let me ask you about the real estate. . . [more talk about irrelevant issues].

The Hawai'i Democrat announced in a statement yesterday that he is engaged to Irene Hirano, the president and chief executive officer of the Japanese American National Museum in Los Angeles.

The couple has set a May 24 wedding date for a private ceremony with immediate family at a church in Los Angeles.

"Irene is an extraordinary woman of grace, intelligence and accomplishment," Inouye said in a statement. "She is a rare gem in our society. Without question, I am a very fortunate and lucky man."

Inouye, 83, was widowed in March 2006 when his wife, Margaret "Maggie" Shinobu Awamura Inouye, passed away from complications of colon cancer. They had been married nearly 57 years and have a son, Daniel Ken Inouye Jr.

Prominent local attorney Jeff Watanabe, whose association with Inouye dates back four decades, said he was "delighted by the news" of the engagement.

Watanabe said he was "fortunate" to have worked for Inouye's office in Washington, D.C., back in the late 1960s while attending Georgetown Law School. He said he and his firm have represented Inouye's political campaign over the years, adding "once you work for a senator, you always work for a senator."

Hirano, who is about 60 years old, has bachelor's and master's degrees in public administration from the University of Southern California. She has worked for three decades in nonprofit administration, community education and public affairs.

Many in Hawai'i have contributed financially to the Japanese American National Museum, where exhibits on Hawai'i have played prominently over the years. Those exhibits have included "Immigration: Japanese pioneers in Hawaii," "Issei Pioneers: Hawaii and the Mainland," and "From Bento to Mixed Plate: Americans of Japanese Ancestry in Multicultural Hawaii."

Colbert Matsumoto has truly come a long way from being a small island kid to chairman and CEO of Island Insurance Co., part of the state’s largest locally owned and managed property and casualty insurance carrier. Prior to becoming a company executive, Matsumoto worked for 20 years as member of the Hawaii Bar....

Colbert M. Matsumoto is the Chairman and CEO of Island Insurance Company, Ltd., Hawaii’s only locally owned and managed property and casualty insurance company. Prior to joining Island Insurance in 1999, he was engaged in the practice of law as a member of the Hawaii Bar for over 20 years....

Matsumoto is active with various community non-profit organizations and has been involved with numerous fundraising efforts on behalf of several non-profit entities. He is a director and past chairman of the board of the Japanese Cultural Center of Hawaii.

He is a member of the Board of Governors of the Japanese American National Museum and is a member and past president of the Honolulu Chapter of the Japanese American Citizens League (JACL). Matsumoto received JACL’s Outstanding Community Service Award in 2004 for his leadership in connection with the $9 million campaign to save the Japanese Cultural Center of Hawaii from foreclosure....

He is also a member and founding president of the Hawaii Chapter of the National Asian Pacific American Bar Association (NAPABA). In 1994, Matsumoto was awarded NAPABA’s Trailblazer Award for his leadership in the Asian-American legal community. Matsumoto previously served as the at-large member of the Board of Land & Natural Resources of the State of Hawaii from 1995 to 2001.

For a five year period beginning in 1996, he served as the court-appointed master charged with reviewing the annual accounts of the Trustees of Kamehameha Schools Bishop Estate. During that time he was also appointed by the Probate Court to serve as a member of the Trustee Compensation Committee and the Trustee Screening Committee for Kamehameha Schools....

This paper gets a lot of press releases from U.S. Congressman Ed Case (D, 2nd District). Most are pretty routine and, frankly, somewhat dull—a couple recent ones dealt with Case calling for more stringent “federal ag inspections” and his new bill that would add “Hawaii macadamia nuts to country-of-origin labeling,” respectively. But on July 21, 2005, Case’s office faxed over one release that definitely caught our eye.

By itself, the announcement of a firm winning a relatively tiny Defense Department contract ($48,594,922 to be exact) isn’t exactly news. Trex, based in San Diego, California, has earned millions in DOD contracts for the last five years. But the release’s next paragraph was different.

“This contract further demonstrates the growing value of Hawaii’s high-tech industry and the important role it’s continuing to play in strengthening the security of our country,” the release quoted Case as saying.

Remember when Democrats—especially Hawai’i Democrats—used to be liberal? Used to say government was spending too much money on war and not enough on homeless people? Used to call missile defense an endless boondoggle and Cold War relic that will never work? Whatever happened to those guys?

Anyway, Trex Enterprises isn’t like Boeing—the granddaddy of all defense contractors—but they make a few bucks now and then off the high-tech weapons our armed forces are increasingly addicted to. DOD contract announcements show that since 2000 the company has made more than $100 million doing work for all the armed services.

For instance, in 2002 the company got $6.2 million from the U.S. Navy for work on a “radio frequency shift to better suit the needs of the warfighting community.” A year later, the U.S. Army was paying them $5 million for “advanced radio frequency technology.” In 2004, Trex worked on a satellite-imaging program for the U.S. Air Force ($25 million) and optical sensor equipment for the Navy ($5.6 million).

Formed in 1978, the privately owned firm employs 150 people, who actually own two-thirds of the company. Trex has offices in four states, including our lovely Hawai’i. The company first came to Maui in 1991, when it began research and development at the Maui Space Suveillance Site atop Haleakala.

To great fanfare, on April 21, 2000, the company opened a million-dollar office in Kihei’s Maui Research and Technology Center. No less a personage than longtime “liberal” U.S. Senator Daniel Inouye (D, Hawai’i) showed up on opening day.

“I hope that this manufacturing will further enhance the quality of life of the people,” he said, according to the Honolulu Star-Bulletin account of the festivities published the next day.

Trex has worked hard to get such attention. So far, the company has donated $10,000 to the National Republican Congressional Campaign (NRCC)—$5,000 in 2000 and another $5,000 two years later. In addition, corporate officers like CEO Kenneth Tang have donated more than $36,000 to various congressmen since 2001.

Hawai’i’s elected representatives have done very well for themselves, according to the Washington, D.C.-based Center for Responsive Politics. Senator Inouye has accepted $10,300 from Trex officers in the years since he helped dedicate Trex’s Kihei office. Congressman Neil Abercrombie (D, 1st District) has cashed $3,250 in checks from Trex employees. And Congressman Case, who first alerted us to the company’s new $48.6 million DOD contract, took $1,000 from Trex CEO Tang on March 10, 2005. MTW