Wednesday, June 17, 1998




By Craig T. Kojima, Star-Bulletin
Daniel Kihano walks into Federal Court today
accompanied by Dr. Calvin Wong



Ex-Speaker Kihano
gets two years

He illegally spent campaign funds,
then tried to cover it up

By Craig Gima
Star-Bulletin

Tapa

Former state House Speaker Daniel Kihano today was sentenced to two years in a mainland prison for illegally spending $27,000 in campaign funds for personal use and for trying to cover up the theft.

Kihano made no comment during his sentencing this morning. Family members and supporters who packed the courtroom cried and hugged Kihano after Federal Judge Alan Kay pronounced sentence.

Kihano will be allowed to turn himself in to a prison hospital facility in Rochester, Minn., on Aug. 3. He remains free on bail until then.

"He betrayed his oath as speaker of the House and betrayed his constituents," Assistant U.S. Attorney Michael Seabright argued in asking for a harsher sentence.

He said Kihano's crime has reduced the public's faith in government and that a strong message must be sent.

In sentencing, Kay cited Kihano's failure to accept responsibility and violation of the public trust. But he noted the need for compassion.

Kihano was also ordered to pay $9,000 in restitution to the state Campaign Spending Commission and to reimburse the court for the cost of his prosecution. After he finishes his prison term, he will also have to serve three years of court-supervised release.

Before the sentencing, Kihano's attorney Ben Cassiday asked the court for leniency because of Kihano's poor health.

"If we send Mr. Kihano to the mainland, it is unlikely he will ever return," Cassiday said. Cassiday had asked that Kihano, who has a deteriorating heart condition, be sentenced to house arrest.

Dr. Lee Guertler, a court-appointed cardiologist, today said Kihano has a "poor prognosis" with only a 25-40 percent survival rate for the next five years.

A jury convicted Kihano last October on 17 of 23 criminal counts, including money laundering, obstruction of justice and filing a false income tax return.

Among other things, prosecutors said Kihano took campaign funds and spent it on annuities and later withdrew the money for personal use. He also spent campaign money on auto insurance for his personal car and pocketed about $1,000 in reimbursements for travel originally paid for with campaign funds, they charged.



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