There’s a tidbit of information that’s circulating through social media describing ties between Gov. David Ige and a security contractor for the TMT.
It’s interesting. The basic information from business registration records appears to be accurate. But the links between Gov. Ige and the TMT, via the TMT’s security contractor, are indirect and distant at best and, based on the information currently being reviewed, would not give the governor a substantial financial interest in the TMT itself. And having a “substantial financial interest” is what would be needed to trigger a possible conflict of interest in this case.
Here’s what’s being circulated:
DAVID IGE’S FINANCIAL TIES TO TMT
In 2015, accordingly to their filed 990 tax form (which is a publicly available document), TMT (TMT International Observatory, LLC) paid $3,030,323 (over $3 million dollars) to local firm “Private Security Group” (1037 Hanohano Way, Honolulu, HI 96825) for security services.
Upon doing a basic search of the Department of Commerce and Consumer Affairs (DCCA) website, it shows that “Private Security Group, Inc.” (File Number 203631 D1) is a domestic profit corporation registered in 2003 to a Charles L. Long, 7192 Kalaniakaole Hwy. Suite G100 Honolulu, HI 96825. The officers and owners of this private for-profit company are Charles Long (CEO, President and Director), Melanie Long, and Bradford Long.
Upon doing an “agent search” at the same DCCA website for Charles Long and Melanie Long, owners of Private Security Group. Melanie Long appears as the agent for Pacific International Realty, Inc. (File Number 214667 D1), address 7192 Kalanianaole Hwy Suite G-102. Honolulu, HI 96825.
Upon searching for Pacific International Realty, Inc. as an agent, only one business appears: David and Dawn Ige Enterprises.
David and Dawn Ige Enterprises is a general domestic partnership (File Number 4481 G5) first registered in 2015. The mailing address is 320 S. Beretania St. Honolulu, HI 96813(Washington Place). The registered agent of David and Dawn Ige Enterprises is Pacific International Realty, Inc, 7192 Kalanianaole Hwy Suite G-102. Honolulu, HI 96825, whose owners are Charles and Melanie Long, the same owners of Private Security Group that received over $3 million for the TMT Security Contract.
The connections between the business entities cited here appear to be accurate, according to available records.
But what do they mean?
Here’s my take and what I have found so far.
Looking back through several years of financial disclosure forms, it appears that David and Dawn Ige Enterprises was set up in late 2015 as the vehicle for renting out their Aiea home located in the Royal Summit subdivision. State business registration records show the Ige’s partnership had an agent, Pacific International Realty.
Business records confirm Melanie Long is president of Pacific International Realty. Her husband, Charles Long, is now listed as executive vice president.
David and Dawn Ige Enterprises is currently listed on the state’s business registration website as “not in good standing.” The company filed its annual registration update in 2016, but has failed to file its further updates in 2017, 2018, and 2019. As a result, it isn’t clear whether Pacific International Realty continues to serve as its agent. And it does pose a compliance issue for the governor.
Real property records show the Ige’s property was purchased in July 1999 for $510,000. It was their primary residence until David Ige’s election as governor in 2014. It did not appear on Ige’s previous financial disclosures as a legislator because lawmaker’s residences are exempt from disclosure requirements. However, they have always been listed as owners on real property records.
The property is appraised for tax purposes in 2019 at $1,123,300. The five bedroom, three bath home is reported to be 3,080 square feet and occupies an 8,946 square foot lot.
In 2014, when David Ige was a candidate for governor, he reported they were receiving between $25,000 and $50,000 annually from rental income. That has increased, and is now reported at between $50,000 and $100,000.
I have found a single connection between Gov. Ige’s campaign and Private Security Group. The campaign reported paying $360.21 to Private Security Group on November 5, 2014, likely for election night security.
Apart from that one expense, I haven’t found other ties to Private Security Group or its principal, former deputy sheriff Charles Lee Long, other than that Pacific International Realty is the rental agent for the Ige property.
Private Security Group, Inc. was registered to do business in 2003. However, the LinkedIn page of its principal, Charles Lee Long, says the company was formed in April 1983.
According to the LinkedIn listing:
Provide Security for Movie and TV Productions, Concerts, Special Events, Private Parties, Construction Sites, Condos, Residential & Commercial, Car Lots, Termite Tenting, Patrol Services, Investigations, Alarm & Remote Monitoring, Personal & Executive Protection, PSG is the Official Security for the Miss Hawaii Pageant & The Great Aloha Run.
The company is on a short list of security firms approved by the Hawaii Convention Center.
In 2015, the company was fined $3,000 for “employing unlicensed guards who were providing guard services at a musical event in Honolulu, Hawaii, on Sept. 19, 2014.” But no other complaints or disciplinary actions are listed in the state’s database of consumer complaints.
Charles Long was also a principal in Hawaii Pacific Care LLC, which was an unsuccessful applicant for one of Hawaii’s medical cannabis dispensary licenses.
Here’s how he was described in the HPC dispensary application:
Mr. Charles Long, the first of two principals in Hawaii Pacific Care, LLC (“HPC”), is a retired State of Hawaii Deputy Sheriff. He currently owns and operates Private Security Group, Inc. (“PSG”), which as been in operation for over thirty consecutive years, providing a wide range of security services including regulated certification classes for: Occupational Safety & Health Administration (OSHA), Hazardous Waste, Emergency Response CPWR, and Adult CPR First Aid and AED (NSC). PSG employ 120+ employees, locally.
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What does a security guard at Private Security Group earn? If Private Security Guard Inc. pays minimum wage like other companies, where did all the money they were paid for security go?
Compare industry leader Securitas. $10.70 is their average hourly salary.
https://www.indeed.com/salaries/Security-Guard-Salaries-at-Securitas,-Hawaii
Like Jeannine commented, $3 million dollars for security for something that hasnt been constructed appears to be a bribe.
I spoke with a principal in a relatively large company that provides guard services. He told me that it costs about $35 an hour to hire a security guard through them, and this amount might vary depending on the responsibilities, location, and other circumstances. If this were a construction site requiring 24-hour security, it would probably require more than a single security guard. And at a remote location like Mauna Kea, it could add to the cost. And we don’t know whether there were other services or sites included in this security contract, or whether it was a multiyear contract. And here’s one for Natalie–from the 990s, can we tell whether TMT used cash vs accrual accounting, and whether that would make a difference in their reporting of the security expenditures in 2015?
The Form 990 does provide information on the basis of accounting used. See page 12. In this case, it was accrual. The 990 also indicates whether the organization was audited, and TMT was in 2015.
Under the accrual method, expenses are recorded when incurred rather than as paid.
Aloha Ian,
I understand you’re very good at research. I do have some questions you didn’t touch upon.
1) Although TMT is a private corporation wouldn’t they have to follow the rules of going out to bid for the people they are hiring to build including the security? I would think that they are building on state land for all intense purposes just call it that. I know other projects have to go through the bidding process. If they did go through the bidding process that information should be a matter of public record. Including where did this company fall in the bidding process.
2) Why haven’t the Ige’s or their agent filed the paperwork from 2017 forward? I can see missing the deadline for one year but this many is ridiculous.
3) You stated you found only one connection of a fee of $361 for maybe security on Election night. He only had 4 guards at roughly $10 an hour for 6 hours? The venue must not have had a very big turn out. Usual security is about 1-2 guards per 25 for this kind of an event.
It is suspicious knowing that the husband and wife are cross owners in each other’s businesses which is not illegal. The governor’s team should have hired you so they could have removed themselves from Pacific Int’l Realty. I would have to be blind not to know that the agents husband was in charge of security for TMT back then.
Crystal, I’ll take a stab at answering your questions. 1. TMT is a 501(c)(3) organization, so a lot of their financial information is public. However, even if they did go through some type of procurement process, that is not public information. You could ask them about it if you want, however.
2. It’s not uncommon for businesses to forget to register with the DCCA, even for two years in a row.
As for what Ige knew when he signed PIR on as manager for his property, I really don’t think many people check who the registered agent is before they sign a contract. Even if they did know, what would it matter?
The DCCA fine stated Private Security Group failed to provide certified security personnel for a concert held on September 19, 2014. Lookup Arisha Blast. Concert for Japan boy band held at Koolina 9-19 &20. Hawaii Tourism Japan (contract agent for HTA) employee and representative reported that the concert was exclusively promoted in Japan until Pacific Business News (PBN) reporter Duane Shimogawa was alerted to the concert by a Koolina Realtor. Concert package guaranteed signup for fan club members exceeded 18000 and were exclusive to Japan Arashi members.
Eric Takahata, HTJ managing director, spoke at a panel on economic development through tourism and events at the 2014 U.S.-Japan Council Annual Conference in October 2014, starting HTJ is the marketing contractor of the Hawaii Tourism Authority.
Takahata said those Japanese concert fans were all qualified, meaning they had $5,000 ready to spend on the tour.
Some 15,000 did buy the tour packages and flew on 18 chartered flights [in addition to regularly scheduled flights] to Hawaii for two shows held at Ko Olina on Sept. 19-20. Takahata said the concert brought in $20 million in spending plus $150 million in media exposure.
Until PBN reported about the concert, tickets were only available for fan club members who bought tour packages through Japan-based companies Jalpak, JTB and H.I.S. Prices for the tour packages varied, with some online websites quoting between 270,000 to 550,000 yen, or $2,600 to $5,400.
Organizers expected about 15,000 people at each concert. Approximately half of the tickets were finally made available to the general public, reported by Barbara Saito of A Tom Moffatt Production. Moffatt reported that it was the most complex am
and largest event he had ever planned.
The concert was held at an outdoor venue fronting Naia Lagoon 3 at Ko Olina Resort.
General admission tickets for both shows were to go on sale n late August. Prices were $150 for adults and $75 for children
Shirokiya was the merchadising headquarters and tour package concert goers were bussed from Waikiki to the Hawaii Convention Center for tickets, which contradicted the paperless ticket process set up for the general public. Mixed up with this is Private Secuirty Group(PSG) which was reported to be on the short list of security firms approved by the Hawaii Convention Center. What role did PSG have in the concert production, was there other roles or connections from others reported in your original reporting to include a previous governor and current governor. They both have major common business links including to Japan and now former governor openly supporting TMT on television.
Aloha Ian,
Mahalo piha for your dedication for Pono. My point may be late but Scam in Hawaii never ceases. I don’t know of anywhere else on Earth that has perfected its greatness? Back in September 2, 2019 the Star Advertiser front page article reported on the Bank of America $150 Million Loan promise to beneficiaries of Hawaiian Home Lands.
As a Hawaiian National, I wonder what did if anything did the 50 % Native Hawaiians get for they have been as silent as Bank of America. So it must Pono or at least Ono for the chosens”?
Mahalo, pilipo