Gary Rodrigues, former state director of the United Public Workers, is scheduled to be released from a federal correctional facility in Sacramento on August 27, 2012, after serving most of a five-year sentence, according to the online “inmate locator” maintained by the Federal Bureau of Prisons.
However, his attorney told the Star-Advertiser in March that Rodrigues had already been released.
A federal jury in Honolulu had convicted the former union leader of fifty counts of “theft of honest services” from the UPW and its members, as well as conspiracy, embezzlement, money laundering, and health care fraud.
Here’s a summary of the criminal case taken from a recent 9th Circuit Court order. You might also want to skim some of my reporting that preceded his indictment and conviction.
In his capacity as the State Director of the United Public Workers, AFSCME, Local 646, AFL-CIO (“UPW”) Petitioner Gary Wayne Rodrigues negotiated contracts with dental and health insurance providers, ostensibly on behalf of UPW members and their families. The providers were Hawaii Dental Services (“HDS”) and Pacific Group Medical Association (“PGMA”). At Rodrigues’s request, the providers included in these contracts what purported to be “consultant’s fees.” These fees were effectively to be paid by UPW members as part of their insurance premiums to the insurance providers, but the fees eventually ended up in the pockets of persons Rodrigues designated as the “consultants.” As it turned out, the purported consultants were (1) the stepfather of Rodrigues’s girlfriend and secretary, Al Loughrin, and (2) shell companies of which Rodrigues’s daughter, Robin Haunani Rodrigues Sabatini (“Sabatini”), was the sole share- holder, only Director, and simultaneously the President, Vice President, Secretary, and Treasurer. During the investigation of these relationships and transactions, it was discovered that neither designated consultant did any real consulting work on these contracts, and that part of the “consultant’s fees” were diverted to Rodrigues’s personal use — circumstances unknown to the UPW.
Rodrigues has been trying for years to challenge his sentence following a U.S. Supreme Court decision that changed the way “theft of honest services” are treated.
The most recent appeal was brought on his behalf by attorneys Eric Seitz, State Rep. Della Au Belatti (in her role as a private attorney), and Ronald Kim. The appeal was argued in Honolulu in February before a three-judge panel from the 9th Circuit. The panel’s decision denying the appeal and upholding Rodrigues’ conviction was issued on March 27.
His attorneys then requested a rehearing “en banc” by all the judges on the 9th Circuit Court of Appeals, but their petition was denied last month.
Meantime, I don’t know whether Rodrigues is already free or looking forward to release. I’ll check in with his attorney’s office and try to find out.
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