Federal prosecutors said Marilyn Ahakuelo enjoyed an inflated salary and first-class travel on the union’s dime.
A Honolulu woman who was convicted alongside her husband for embezzling from a local union and helping to fraudulently increase membership dues was sentenced on Tuesday to nearly six years in prison.
Marilyn Ahakuelo was found guilty in November of conspiracy, wire fraud, and embezzlement from the International Brotherhood of Electrical Workers Local 1260, a shop once headed by her husband, Brian Ahakuelo. She is scheduled to surrender to authorities on May 17.
A jury found that as an employee of the union, Marilyn Ahakuelo conspired with her husband to falsify a dues increase vote in January 2015. She also used union funds to pay for travel that had little, if any, union purpose, including first-class flights. Marilyn was one of several of Brian Ahakuelo鈥檚 family members who were on the union鈥檚 payroll, and she earned over $100,000 a year for mainly clerical work.
In remarks to the court, Ahakuelo said she accepted the jury’s verdict and was 鈥渟orry for everything that has happened,鈥 but she did not admit to the specific events for which she was convicted.聽
In handing down the sentence, U.S. District Court Judge Helen Gillmor noted that the Ahakuelos caused real harm 鈥 a $3 million hole in the union鈥檚 finances 鈥 but that Marilyn Ahakuelo had failed to take ownership for her actions.聽
鈥淭he amount of money that has gone through this family is a huge amount of money, and I鈥檇 like to think that there was some recognition of that,鈥 Gillmor said from the bench.
But the judge said she has not seen any 鈥渞ecognition of wrongfulness.鈥 In fact, in the time since the Ahakuelos鈥 2019 indictment, Marilyn purchased a 2021 Mercedes even as she relied on the services of a taxpayer-funded attorney, Gillmor said.
鈥淎ccepting the jury verdict is appropriate, but there doesn鈥檛 look like there has been a change in attitude,鈥 the judge said.
In asking for a sentence of about six to seven years, prosecutors argued that Marilyn Ahakuelo was a key player in her husband鈥檚 crimes, as well as a main beneficiary.
鈥淭he offense in this case caused great harm to a labor organization that has responsibility for approximately 3,000 members in Hawaii and Guam,鈥 prosecutors said in a sentencing memo.
鈥淭he defendant was motivated primarily by greed, to live a 鈥榝irst class鈥 lifestyle at the expense of the members鈥 interests.鈥
Prosecutors asked the court to 鈥渟end a message that any participation in such a scheme that results in financial or reputational harm to a local labor union will result in significant punishment.鈥
Ahakuelo鈥檚 lawyer, Rebecca Lester, asked the court for either probation or six months of imprisonment. Marilyn Ahakuelo has no prior criminal history, she noted.
Evidence presented at trial showed that Marilyn鈥檚 login and password were used to change union meeting minutes related to a dues increase, but Lester characterized that as circumstantial.
To the extent that financial improprieties occurred, Marilyn Ahakuelo wouldn鈥檛 have knowledge of them, Lester argued.
鈥淭he Government provided no direct testimony that Marilyn was aware of any of the financial aspects of the Local 1260 nor was aware of the financial operations or accounts of the Local 1260,鈥 Lester wrote in her sentencing memo.
鈥淭he closest thing Marilyn had to any of the Local 1260 finances was being married to the business manager. Marilyn should not be punished or penalized because she is married to Brian.鈥
Assistant U.S. Attorney Michael Albanese challenged that, noting that Marilyn鈥檚 Local 1260 salary was higher than she鈥檇 ever made previously and more than she鈥檚 made since.
鈥淓very time she saw her paycheck and knew the kind of work she was doing, she knew something was wrong,鈥 he said. 鈥淚t didn鈥檛 match up. 鈥
Gillmor agreed.
鈥淚 don’t believe it鈥檚 possible to take the position she didn鈥檛 know what was going on,鈥 the judge said.
In addition to the prison time, Ahakuelo will have to serve three years of supervised release and pay $7,967.90 in restitution, a $10,000 fine and a special assessment of $4,600, Gillmor said. Ahakuelo requested to serve her time in either Alderson, West Virginia or Bryan, Texas. The location will be determined at a later date.
Ahakuelo, her attorney and prosecutors all declined to comment after the sentence was handed down.
Meanwhile, Brian Ahakuelo is being held at the Honolulu Federal Detention Center awaiting his own sentencing hearing on June 20.聽
Former Local 1260 employees Michael Brittain, Daniel Rose, Lee Ann Miyamura, and Russell Yamanoha pleaded guilty to helping to falsify the dues increase vote and helped the prosecution. Each of those individuals received a sentence of probation, a fine and community service.
Jennifer Estencion, Marilyn Ahakuelo鈥檚 sister, was charged for alleged involvement in the vote-rigging scheme but was acquitted at trial.
Outside the courthouse, Leroy Chincio, Local 1260’s current business manager, said justice had been served.
“Now is the time you have to pay the price,” he said.
Sign up for our FREE morning newsletter and face each day more informed.
Support Independent, Unbiased News
Civil Beat is a nonprofit, reader-supported newsroom based in 贬补飞补颈驶颈. When you give, your donation is combined with gifts from thousands of your fellow readers, and together you help power the strongest team of investigative journalists in the state.
About the Author
-
Christina Jedra is a journalist for Civil Beat focused on investigative and in-depth reporting. You can reach her by email at cjedra@civilbeat.org or follow her on Twitter at .