Ooops. Me bad for forgetting to congratulate Starbulletin.com on its 13th anniversary.

Former webmaster Blaine Fergerstrom reminded me that the Star-Bulletin launched its online edition on March 18, 1996. Unfortunately, I let his email get lost in the stack. But better a few days late than never. Happy Anniversary!

As I recall, the move online was made over behind-the-scenes objections by Gannett’s Honolulu Advertiser, which controlled the joint operating agreement and didn’t get itself online for a couple of years.

On Thursday, the State House of Representatives congratulated Rey Graulty, who retired on March 1 after a 10 year term as a 1st Circuit Court judge.

The Hawaii House Blog printed the congratulatory speech made on the floor by Rep. Glenn Wakai, which recounts Graulty’s many contributions during a public career stretching nearly three decades and including stints in both the House and Senate.

Graulty had quite a run through a series of positions.

But my memory of Graulty’s judicial term is colored by the circumstances of his appointment to the court, which I covered back when I was writing for the Star-Bulletin.

It was one of those cases involving a blatant and disturbing conflict of interest that was politely ignored, at least publicly.

Long story short–Gary Rodrigues, then the politically powerful state director of the United Public Workers, the state’s second largest public employee union and sometimes referred to as the 26th Senator, sat on the Judicial Selection Commission.

He took part in the interview and deliberations on Graulty’s appointment, despite the fact that Graulty, as insurance commissioner, was investigating questionable payments made to a company owned by the union leader’s daughter by Pacific Group Medical Association, an insurer serving the union that had been seized by the state after being declared insolvent. The insurance commissioner had also sued the union seeking to recover premiums withheld when PGMA ran into financial trouble.

Rep. Cynthia Thielen (R, Kailua) said Rodrigues should have recused himself from anything dealing with Graulty’s application.

“That’s just wrong,” Thielen said of the union leader’s participation.

“That’s not ethical.”

“Graulty as insurance commissioner questioning a transaction that involves Gary’s daughter, while Gary votes on his judicial nomination, is as close as kissing cousins,” Thielen said. “It’s just too close.”

Thank you, Rep. Thielen. It should have been obvious to everyone, and probably was. But most wouldn’t say that publicly.

Taking Graulty out of the picture didn’t succeed in stopping the insurance investigation or deterring a subsequent federal investigation.

Rodrigues was later indicted and convicted, along with his daughter, on a long list of federal charges including mail fraud, embezzlement, health care fraud, acceptance of kickbacks to influence operation of an employee benefit plan, conspiracy, and money laundering. He is now serving a 64-month sentence in a mainland prison.

Graulty was probably correct in saying that he did everything right.

“Through my attorney, I had notified commissioners (David L.) Fairbanks and (James) Kawashima that there was ongoing litigation,” Graulty said.

“I took it there was a little discussion among them before I came in,” Graulty said. “If there is a problem, it is on their side. I attended the hearing on the date and time appointed. Mr. Rodrigues was there. They asked me all the hard questions that I presume they asked of others.”

But the fact remains that the circumstances of his appointment left a permanent question mark, perhaps through no fault of his own.

At the time, I was the only reporter digging into Rodrigues’ links to the failed insurer, which left behind some $18 million in debts, and the mysterious payments to his daughter. Given Rodrigues’ status and clout, we felt we were on dangerous terrain and my reporting was careful and understated. In retrospect, too understated, perhaps.

Such is the nature of Hawaii politics and power.

Finally, if you’re one of the 99% of Americans who have been contacted to help retrieve a fortune from the Nigerian government, you should laugh through this extended correspondence. It’s a hoot!