HONOLULU — A former business manager of the International Brotherhood of Electrical Workers Local Union 1260 in Honolulu and his wife and sister-in-law were charged Thursday in a 70-count indictment.
Brian Ahakuelo, 58, his wife, Marilyn Ahakuelo, 55, and Jennifer Estencion, 52, were charged with conspiracy, wire fraud, money laundering, and embezzlement.
U.S. Attorney for the District of Hawaii Kenji M. Price stated in a Friday news release that according to court documents and information presented in court, from June 2011 to May 2016, Brian Ahakuelo, Marilyn Ahakuelo, and Estencion engaged in a conspiracy to divert Local 1260 union funds and property for their own personal use.
Brian Ahakuelo hired family members at inflated salaries (some of whom did little or no actual work for the union) and authorized the use of union funds for personal travel, a vehicle, and dining expenditures.
When his activities reportedly depleted the union’s coffers, Brian Ahakuelo, with the help of Marilyn Ahakuelo, Estencion and other union employees, rigged a vote on Resolution 14-07 to increase membership dues. The false election caused members to pay an additional $3.7 million in dues over about 18 months.
“Our office will aggressively investigate and prosecute corruption in unions – and any other governmental or non-governmental entities – that abuse the trust vested in them by the hard working folks in our communities,” Price stated. “If your job is to protect the hard-working men and women in our communities, then do that. If you use your position to corruptly line your own pockets or serve other corrupt interests, we will use all of our resources to hold you accountable.”
The conspiracy charge carries a maximum term of five years imprisonment; each wire fraud charge carries a maximum term of 20 years imprisonment; each money laundering charge carries a maximum term of 10 years imprisonment; and each embezzlement charge carries a maximum term of five years imprisonment. The charges in the information are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“IRS-Criminal Investigation is proud to hold those responsible accountable, particularly when the alleged crimes directly impact the paychecks of hard working electrical workers,” Special Agent in Charge Justin Campbell said in the press release.
The International Brotherhood of Electrical Workers said in a statement it was glad to see the charges come down.
“The indictments filed yesterday against Brian Ahakuelo, Marilyn Ahakuelo, and Jennifer Estencion, are a direct result of the IBEW’s vigilance, dogged pursuit of justice for its members and yearslong cooperation with law enforcement in Hawaii. The IBEW welcomes today’s announcement and has no tolerance for the type of conduct outlined in the court filing.”