State public corruption unit leading criminal probe into Maui County

News admin October 13, 2026 0 Comments

State public corruption unit leading criminal probe into Maui County

WAILUKU (HawaiiNewsNow) – The state Attorney General’s Special Investigation and Prosecution Division (SIPD) is investigating allegations of fraud against Maui County staffers stemming from a civil whistleblower lawsuit filed earlier this year.

The lawsuit, filed by Leo Caires, former chief of staff for Mayor Richard Bissen, claims the mayor knew about possible fraud inside his administration and ignored it.

Lawsuit details allegations

The civil complaint, filed in April, accuses Maui County of wrongful termination and whistleblower retaliation.

Caires says he was demoted and then fired after raising concerns about questionable purchases.

The suit points to a suspicious invoice dated Aug. 16, 2023, just after the Maui wildfires. It totaled $45,532.32 from a company named RTFEX Depot.

But Caires said he could not find any such company.

He also describes fake cashier’s checks made out to a fake company, and concerns about how grant money was being moved around. His inquiry included the mayor’s executive assistant and the Office of Economic Development.

The lawsuit says there were about $20,000 in transactions from another questionable vendor.

According to Caires, when he pressed for answers, Bissen ordered him to stop investigating. In 2024, Caires says he was demoted from chief of staff to energy commissioner with a significant pay cut, and later terminated.

Maui County has denied the allegations in court. A civil trial is scheduled for April 2028.

Council chair sought police investigation

Maui County Council Chair Alice Lee said she was hoping the public would have answers by now about the allegations.

“The incident actually happened a couple of years ago. This is how long it’s been languishing, this matter,” Lee said.

Lee asked the Maui Police Department on July 27, 2026, to open a criminal investigation, according to emails and memos obtained by HNN Investigates.

She cited a June 27, 2026, news article about the lawsuit by Hawaii Journalism Initiative.

“Based on the article, it appears that Mr. Caires may have filed a criminal complaint,” she wrote.

In a response the next day, MPD Deputy Chief Wade Maeda said there was no MPD criminal investigation, but “MPD will initiate an investigation should a request be made for one.”

On July 31, 2026, Lee wrote back, “May I please request an investigation.”

However, after attempting to launch a criminal case, MPD was made aware that the state attorney general’s office was already working it.

Maeda notified county officials: “According to Public Corruption Supervisor David Van Acker, they have already been investigating” the claims by Caires and another Maui employee who filed a defamation and negligence case against the county.

“Supervisor Van Acker requested they take the lead on the investigation,” Maeda wrote.

Van Acker is best known for indicting Lt. Gov. Sylvia Luke and other current and former officials in an alleged bribery scheme. That case is moving through the courts.

Police chief cites separate felony investigation

The case is getting new attention after Maui Police Chief John Pelletier said at a recent press conference that Mayor Bissen is under investigation for a felony crime, separate from the allegations contained in the Caires civil lawsuit.

Bissen told HNN Investigates he was not aware of any criminal case against him by MPD.

Pelletier would not provide any further details.

The police commission put Pelletier on administrative leave last week, citing the August arrest of high-ranking MPD Lieutenant Michael Vaituulala who was arrested and accused by the FBI of taking bribes.

Bissen and Pelletier have had a strained relationship for several years.