For Immediate Release

A federal grand jury returned a 44-count indictment against GARY WAYNE RODRIGUES and ROBIN HAUNANI RODRIGUES SABATINI with fraud, embezzlement, and money laundering. The indictment alleges that RODRIGUES, State Director of the United Public Workers (UPW), age 59, and SABATINI, his daughter, age 36, devised one scheme to defraud UPW and its members of money paid out of UPW accounts for dental benefits and another scheme to defraud a UPW health benefit program; that RODRIGUES embezzled UPW funds by causing UPW to pay premiums not required to be paid for dental benefits; and that RODRIGUES and SABATINI laundered proceeds from the health benefit program fraud and embezzlement.

Steven S. Alm, United States Attorney for the District of Hawaii, said that according to the indictment, the schemes sought to defraud UPW of money and RODRIGUES' honest services. It is alleged that RODRIGUES failed to disclose that UPW premiums paid for dental benefits were in excess of those required and were inflated to include consulting fee negotiated by him, which he directed to pay off a personal loan and to a company incorporated by SABATINI. Count 21 alleges that RODRIGUES failed to disclose that he negotiated a consulting fee to be paid to SABATINI's company in connection with a UPW contract for medical benefits.

Mail fraud and embezzlement, as charged in counts 1-20, carry maximum penalties of five years of imprisonment and a $250,000 fine for each count. Defrauding a health care benefit program, as charged in count 21, carries a maximum penalty of ten years of imprisonment and a $250,000 fine. The two money laundering conspiracy charges (Counts 22 and 37) and related substantive charges (Counts 23-36 and 38-42, respectively) each have maximum penalties of 20 years imprisonment and a fine of up to $500,000. The prosecution is also seeking a forfeiture of $200,200 (Count 43) in connection with the money laundering.

United States Attorney Alm cautioned that an indictment is merely an accusation, and that every defendant is presumed innocent unless and until proven guilty.

This investigation has been conducted by the Office of the Inspector General of the Department of Labor, the Criminal Investigation Division of the Internal Revenue Service, the Federal Bureau of Investigation, the Honolulu Police Department, and the United States Attorney's Office. The prosecution is being handled by Organized Crime Strike Force Chief and Assistant United States Attorney Florence T. Nakakuni.