Category Archives: Mike Miske

The future of Miske’s fortune remains unsettled

The saga of Mike Miske’s fortune continues to unfold at a snail’s pace.

Nine months after the federal government filed a civil forfeiture lawsuit, the question of who will get the property of late-business owner and convicted racketeering boss remains in legal limbo with little progress publicly reported to date.

Following Miske’s conviction after a 6-month trial last year, a jury found that 27 itemized peroperties, including real estate, cash and cashier’s checks, vintage cars, and art work should be forfeited to the government because they constitutedz or were obtained with proceeds of Miske’s racketeering activities. Miske’s properties have previously been estimated to be worth at least $11 million, and perhaps as much at $25 million. The largest single asset is the
8,206 square foot luxury home on most of an acre overlooking the ocean in Portlack.

However, the entire case, including the indictment, convictions, and forfeiture, were vacated following Miske’s death in Honolulu’s Federal Detention Center last December while awaiting sentencing under the legal doctrine of abatement ab initio. As a result, the civil forfeiture lawsuit was filed in order to reclaim the property that had been awarded to the government by the jury.

After the case was filed, the trustees of Miske’s personal trust filed their own claim on the assets, and three lenders entered the case seeking amounts to cover unpaid mortgage loans. Of the three, Bank of Hawaii appears to have the most exposure.

Then in late June, the parties disclosed an agreement to pursue a negotiated settlement that would avoid the expense of another protracted trial in which the government would again have to prove these properties were products of Miske’s criminal enterprise. Instead, they agreed to enter into settlement negotiations with Miske’s trust in order to seek a division of assets that would pay off the the outstanding mortgage debts, and then split the remaining assets and cash between the government and Miske’s trust.

All parties said they needed more time, and agreed to a five-month delay in the case to allow negotiations to move forward. If the stipulated delay ends in late November as scheduled, a scheduling conferece will be held before Magistrate Judge Kenneth Mansfield on December 1 to set deadlines for each of the remaining parts of the process, up to and including a trial in the unlikely event no agreement can be reached between the parties.

The parties have filed monthly status reports, the first in July. In each, the operating phrase for the status of discussions with the lenders, and discussions between the government and the Miske trust, has been simple: “Those discussions are ongoing.”

In the most recent update, filed in court on October 9, attorneys report they have “have begun discussions to schedule an initial settlement conference.”

But, again–“Those discussions are ongoing.”

Feds were told of Miske’s suicidal thoughts

Years before convicted racketeering boss Michael J. Miske, Jr. was found dead in his cell at Honolulu’s Federal Detention Center, one of his closest associates told federal investigators Miske had spoken about the possibility of taking his own life if he were facing prison time. It is the first and, so far, the only documented indication Miske had ever contemplated suicide. It has not been previously reported.

Miske, 50, died December 1, 2024, while awaiting sentencing. He had been convicted on 13 of 16 counts after a six month jury trial, including several counts carrying a sentence of life in prison.

The nature of Miske’s death remains unresolved. Published reports said sources indicated he had killed himself. The medical examiner found he had died of a fentanyl overdose, but tentatively ruled it “accidental,” according to public statements from the medical examiner’s office. A final determination was deferred pending results of a further ongoing investigation, and a death certificate later filed in federal court as part of an ongoing civil forfeiture lawsuit omitted any mention of the cause of death.

In an earlier post here, I noted that Miske was not known to be a hard drug user, and had pushed a number of his associates to enter drug rehab, sometimes repeatedly. This appears to make an “accidental” overdose a less likely explanation, although the specter of life in prison could alter one’s view of drug use.

And Miske being a victim of a murder plot seems unlikely, as he had forged alliances with several prison gangs whose members reportedly retaliated against those who had testified against Miske, and also likely looked out for his safety.

The newly available reference to a witness statement about Miske’s mention of suicide appears in a 2019 affidavit by a federal agent submitted to the Federal District Court in support of an application for a search warrant. The search warrant, part of what was the ongoing multi-agency investigation of what prosecutors were calling the “Miske Enterprise” that eventually led to his arrest and conviction, remained sealed and unavailable to the public until earlier this year.

The undated statement is attributed to a cooperating witness identified in the document only as “CW1.” However, numerous other pieces of information in the affidavit match Wayne Miller, who grew up in the same Waimanalo neighborhood as Miske. The two become good friends despite a difference in age, and Miske once referred to Miller as one of his few “true” friends.

Miller served a 10-year prison sentence for the armed robbery of a windward credit union, and after his release quickly went to work for Miske. He soon became Miske’s top lieutenant, according to other witness statements, and admitted to being part of Miske’s organization from 2014 until sometime in 2018, although their relationship frayed over time.

According to the agent’s sworn affidavit:

According to CWl, MISKE was waiting for the day of his arrest by law enforcement. He believed serving time in prison was inevitable, which caused him to be suicidal. MISKE spoke about hanging himself in prison.

This represented a turnaround from Miske’s reported attitude in August 2017 when the government first disclosed it was investigating his role in an alleged murder-for-hire plot that led to the kidnapping and disappearance of Jonathan Fraser. Miske responded at that time by lawyering up, hiring experienced defense attorneys Thomas “Tommy” Otake and Lynn Panagakos to handle his case.

Miller later told investigators, “Miske trusted his legal team and planned to ‘ride it out;’ a reference to enduring any criminal proceedings with faith that his legal team would mount a successful defense,” according to the same 2019 affidavit.

Miller started cooperating with investigators no later than June 1, 2017, according to court filings by Lynn Panagakos, one of Miske’s lead defense attorneys. Miller stepped up his cooperation after he was arrested on drug charges on August 1, 2018. For more than a year, Miller tried to play both sides, providing information to investigators while continuing to use and deal quantities of drugs at the same time.

A search of court records, including pretrial motions and responses, more than 75 search warrants that were unsealed and made public by court order, and available transcripts of trial testimony, failed to turn up any other indication Miske had ever harbored suicidal thoughts.

However, Miske’s father, Michael John Miske Sr., was 28 when he took his own life in 1980 by drinking a cyanide concoction. He was reportedly depressed and despondent over the breakup of his marriage and the prospect of losing both his wife and son. Mike Jr. was just 6-years-old.

Whatever the cause, Miske’s death prior to sentencing led to an order by Judge Derrick Watson in February dismissing the criminal case. The entire matter, from the original indictment to conviction, including jury’s finding that Miske’s estate should be forfeited to the government, simply disappeared with Miske’s death, at least in a legal sense.

This points to another factor that could be relevant. In the matter of the forfeiture of Miske’s assets, estimated to be worth as much as $25 million, the disappearance of the criminal case had one direct and dramatic result. Had Miske lived and been unsuccessful at challenging the jury’s verdict on appeal, the entire amount would have gone to the government, as the jury had already ruled on the matter of criinal forfeiture.

After his death, however, the government has to try to prove its right to claim Miske’s assets by filing a civil forfeiture lawsuit, now pending in Honolulu’s Federal District Court.

However, the prospect of another long and costly trial with an uncertain outcome has prompted federal lawyers to enter into negotiations with the attorney representing Miske’s personal trust, which also claims the assets. Both sides say they hope to reach a agreement to divide the estate, with an undetermined amount to go to the Miske’s trust’s sole beneficiary, his granddaughter.

There is no indication in the existing record whether or not Miske knew that his death would create this legal possibility of grabbing back some of his assets from the government, an outcome which now appears highly likely.

The reference to suicide in a witness statement from years before Miske’s death adds a small but telling detail to a story that remains unresolved. It suggests he may have long anticipated the possibility of dying behind bars, though whether his death was intentional, accidental, or something else entirely is still unclear.

What is clear is that Miske’s death halted the government’s criminal case and transformed the battle over his assets into a civil one. The legal fight now continues in his absence, even as the human dimensions of his story—ambition, loyalty, betrayal, and loss—continue to unfold in the shadows he left behind.

What’s Next for “Hammah”? Lance Bermudez, key Miske associate, to be sentenced

Lance Bermudez, known simply as “Hammah,” will be the last of Mike Miske’s co-defendants and criminal associates to be sentenced when he appears in the courtroom of Judge Derrick Watson on Monday morning, July 14.

Bermudez had already earned a reputation as a “shooter” by late 2015 or early 2016 when Miske requested a meeting and offered him a contract to kill a Waimanalo man who Miske believed was providing information to investigators working on an FBI probe that had been underway for two years.

Bermudez became a close associate of Jacob “Jake” Smith, who was paid to be on call to assault victims at Miske’s request, and John Stancil, Miske’s younger half-brother, and appeared to be mentoring Dae Han Moon, the youngest of Miske’s co-defendants.

Screenshot

Bermudez, 34, pleaded guilty in September 2022 to racketeering conspiracy, conspiracy to distribute drugs, and armed robbery. The drug charge carries a mandatory minimum sentence of 10 years, and the maximum sentence on each of the other two charges is 20 years. The plea agreement required Bermudez to cooperate with prosecutors and provide information about Miske and other defendants. In exchange, prosecutors agreed to drop several other charges, and to recommend at least a three-level reduction from federal sentencing guidelines for taking responsibility and for allowing the government to avoid a trial in his case.

He entered his guilty plea via video from an undisclosed location on the mainland due to concerns at the time that bringing Bermudez back to appear in court would pose an unnecessary risk to his physical safety. However, following Miske’s death in December, and the sentencing of all his co-defendants and other associates, the federal Bureau of Prisons online inmate locator reports Bermudez is currently back in Honolulu?s Federal Detention Center pending sentencing.

Bermudez’s cooperation and testimony were expected to be critical in tying Miske and Jason Yokoyama, another close associate and manager at Miske’s M Nightclub, to various criminal activities, including the Waimanalo murder-for-hire plot and the disappearance of Jonathan Fraser.

However, Bermudez was surprisingly not called to testify during Miske’s trial. Despite this, Miske was ultimately found guilty of 13 of 16 counts, including racketeering conspiracy and murder in aid of racketeering in connection to Fraser’s killing.

See:<blockquote

Miske Case Weaves Together Disparate Strands Of Past Crimes,” January 20, 2021

Another Key Player In The Miske Conspiracy Case Has Made A Deal With Prosecutors,” Civil Beat, September 8, 2022

The Miske Trial: Key Cooperating Witness Says Working For Miske Made Him Feel Protected,” Civil Beat, May 21, 2024</blockquote>

Harnessing Google’s AI to tease out insights from my Miske files

I’ve been fiddling around with a couple of AI tools to see what they can contribute.

One of these is Google’s NotebookLM (as in Language Model) which utilizes Google’s Gemini AI to process large amounts of information. I’ve written about NotebookLM here before, and stop now and then to see what it can do to assist me.

Here’s one example. My latest experiment was to copy almost everything I’ve written about Miske at Civil Beat into a new Google notebook, and ended with 83 source files. I was searching for and transferring the files manually, so the collection may not be complete.

Then I asked Google what accounted for Miske’s ability to operate his criminal enterprise for so long.

This was Google’s answer. It did a decent job of pointing out structural areas of concern. This could be treated as an outline or starting point for a fuller discussion of these factors.

Michael J. Miske Jr.’s longevity as an alleged crime leader, spanning at least two decades, was reportedly facilitated by a combination of systemic factors, including his sophisticated use of legitimate businesses as fronts, alleged corruption or inaction within local law enforcement and city agencies, his reputation for and strategic use of violence and intimidation, and his methods of financial concealment and exploitation of regulatory weaknesses.

Key systemic factors identified in the sources include:

Use of Legitimate Businesses as Facades Miske allegedly controlled a network of seemingly legitimate businesses, such as Kamaaina Termite and Pest Control, M Nightclub (and its successor Encore), Kamaaina Plumbing, Hawaii Partners LLC (a used car dealership), Kamaaina Holdings LLC (which owned a fishing vessel), and Makana Pacific Development LLC. These businesses were reportedly used as a “home base and a facade” for criminal activities, including planning crimes, money laundering, and fraudulently employing individuals whose “work” involved acts of violence or fraud for the “Miske Enterprise”. Miske allegedly transferred nominal control of several companies to his daughter-in-law, Delia-Anne Fabro-Miske, or used business partners like Jason Yokoyama as figureheads to conceal his true ownership and control, especially given his felony record which restricted his ability to hold certain licenses.

Alleged Corruption and Inaction by Law Enforcement and City Officials Miske’s ability to operate for so long reportedly stemmed from his “clout” and “apparent special relationship with the office Honolulu’s city prosecutor and the Honolulu Police Department”.

Intervention in Cases: Former Honolulu Deputy Prosecutor Katherine Kealoha and then-Police Chief Louis Kealoha were implicated in allegedly intervening on Miske’s behalf. For instance, Katherine Kealoha reportedly told an HPD officer to drop efforts to locate Miske for a traffic citation, falsely claiming he was “assisting the Prosecutor’s Office with an ongoing investigation”. Miske himself allegedly threatened an officer, stating, “I can go to the top of the food chain, You’ll see, Jared Spiker,” implying his influence over high-ranking officials.

“Off-the-Books” Coordination: An HPD sergeant, Al Lee, cooperated “off the books” with the FBI regarding Miske’s arrest due to suspicions of corruption within HPD itself.

Ignoring Regulatory Violations: Miske allegedly got his way with the city regarding permits, such as stringing lights on a public tree without proper authorization and refusing to remove them, leading the Parks Department to seek guidance from the mayor’s office rather than enforce rules. His businesses reportedly submitted fraudulent paperwork to regulators for years, with “overworked public employees rarely flagged problems or referred them for action”.

Use of Violence, Intimidation, and Reputation The “Miske Enterprise” allegedly maintained its power and protected its profits through violence, intimidation, and threats.

“Muscle” and “Shooters”: Miske recruited individuals like Jacob “Jake” Smith, a skilled martial artist, to provide “strong-arm services,” commit assaults, and even participate in murder-for-hire plots, often paying them for these “jobs”. These violent acts contributed to the enterprise’s “reputation for violence”.

Deterring Competition: Miske allegedly used threats and intimidation to discourage rival bidders at used car auctions.

Protection for Associates: Members of the Miske Enterprise, such as Hunter Wilson, felt “assisted and emboldened by being a member of the Miske Enterprise” and believed “nobody would mess with them” because they were part of Miske’s group. Harry Kauhi also admitted benefiting from the “protection the enterprise afforded” his drug activities.

Financial Concealment and Fraudulent Practices Miske’s enterprise allegedly engaged in various financial crimes to obscure illicit gains and evade taxes.

Skimming and Tax Fraud: Miske and associates like Jason Yokoyama allegedly “regularly and corruptly skimmed funds” from M Nightclub, underreporting income to the IRS and resulting in significant tax loss. Miske’s accountant, Tricia Ann Castro, pleaded guilty to preparing false tax returns for Miske, his companies, and associates, and using “materially false documents” for loan applications. Miske’s personal expenses, including an “$11.5 million renovation to Miske’s personal residence,” were allegedly expensed as business costs.

Structuring Transactions: Miske and his associates engaged in “structuring” bank transactions, breaking large sums into amounts under the $10,000 reporting threshold, which is evidence of money laundering.

Benefit Fraud: Delia Fabro-Miske admitted to wire fraud by failing to report significant income to the Social Security Administration to continue receiving full survivor benefits after Caleb Miske’s death.

Exploitation of Regulatory Weaknesses Miske allegedly exploited lax oversight and specific regulations.

Pest Control Licensing Fraud: Kamaaina Termite and Oahu Termite allegedly obtained and maintained their pest control licenses by submitting “phony company documents” and falsely claiming a qualified “Responsible Managing Employee” (RME) held majority ownership, when Miske actually owned 100%.

Chemical Misuse: Skipping the use of chloropicrin (a warning agent) in fumigation, ostensibly to do more jobs faster, also created an unregulated supply of the chemical that was later allegedly used in chemical attacks on rival nightclubs. Unlicensed employees were also used for fumigation jobs.

Liquor and Auto Dealer Licensing: Similar to the pest control licenses, Miske circumvented regulations for his M Nightclub’s liquor license and Hawaii Partners LLC’s motor vehicle dealer license by using associates as front owners and falsely reporting no felony convictions among key personnel.

One external comment in the sources also suggests that the “absence of serious gangland competition” in Honolulu might have allowed such a group to “survive and prosper,” implying a less competitive criminal environment contributed to their ability to operate without significant challenges from rivals.

I’ll try to remember to come back and share some of the problems I found in working with NotebookLM in its current form.