Rodrigues Target Of 43-Count Indictment
Daughter Also Charged In Alleged Scheme
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A federal grand jury has indicted longtime United Public Workers leader Gary Rodrigues and his daughter on more than 40 charges of fraud, embezzlement and money laundering.
The 43-count indictment against Rodrigues (pictured, right) and daughter Robin Haunani Rodrigues Sabatini was announced Wednesday afternoon by U.S. Attorney Steven Alm.
Alm accused Rodrigues and his daughter of bilking the 15,000 members of the UPW out of thousands of dollars through two schemes of overcharging for medical and dental benefits.
The schemes involved UPW accounts with Hawaii Dental Service and the union's health benefit program, PGMA.
"As the lead negotiator for the UPW, Mr. Rodrigues made contracts for both of those services ... to provide respective services for UPW members," Alm said. "What he neglected to tell the UPW was that he included consulting fees and he set his daughter up primarily to receive those consulting fees."
UPW members were not aware of those consulting fees, according to Alm. He said that at least $200,000 in consulting fees were paid.
Mail fraud and embezzlement carry five-year prison terms, defrauding a health care benefit program carries a 10-year sentence and money-laundering convictions could mean 20 years in prison.
Rodrigues would not return KITV4 News phone calls.
The 43-count indictment against Rodrigues (pictured, right) and daughter Robin Haunani Rodrigues Sabatini was announced Wednesday afternoon by U.S. Attorney Steven Alm.
Alm accused Rodrigues and his daughter of bilking the 15,000 members of the UPW out of thousands of dollars through two schemes of overcharging for medical and dental benefits.
The schemes involved UPW accounts with Hawaii Dental Service and the union's health benefit program, PGMA.
"As the lead negotiator for the UPW, Mr. Rodrigues made contracts for both of those services ... to provide respective services for UPW members," Alm said. "What he neglected to tell the UPW was that he included consulting fees and he set his daughter up primarily to receive those consulting fees."
UPW members were not aware of those consulting fees, according to Alm. He said that at least $200,000 in consulting fees were paid.
Mail fraud and embezzlement carry five-year prison terms, defrauding a health care benefit program carries a 10-year sentence and money-laundering convictions could mean 20 years in prison.
Rodrigues would not return KITV4 News phone calls.Copyright 2002 by TheHawaiiChannel.com All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
