A $245,000 credit-card spree
By Peter Boylan
Advertiser Staff Writer
Honolulu police and a private investigator are looking for a man who allegedly stole more than $245,000 from Honeywell International Inc. during a lavish 11-day spending spree that included luxury vehicles and strip clubs.
John L. Kahana IV is wanted on charges of credit-card fraud and is the subject of a civil suit, according to police and a document filed in O'ahu Circuit Court.
If convicted, Kahana faces up to five years in prison and a $10,000 fine.
From Aug. 8 to 19, he used his company-issued American Express card to charge $245,672.11 in personal items and services while on unpaid leave, according to a civil complaint filed in court on Aug. 23.
Most of the money, $164,302.47, was spent on a customized 2006 Hummer H2 bought from Pflueger GM /Cadillac. Police and an investigator with Honeywell's security division believe Kahana may have sold the Hummer or traded it for construction equipment, according to court records.
The rest, $81,369.64, was spent on two customized Harley Davidson motorcycles, restaurant meals, a hotel suite, car insurance, store purchases and multiple visits to strip clubs, according to court records and police.
Honolulu Police Department spokeswoman Michelle Yu acknowledged there is a criminal case but declined further comment, citing an ongoing investigation.
Keith Y. Yamada and W. Keoni Shultz, Honolulu attorneys representing Honeywell in the civil suit, also declined comment, citing pending litigation.
When reached by phone Wednesday, representatives with two of Honeywell's Honolulu offices said they were unaware of the alleged theft.
According to police and court documents, Kahana was reached by phone on Aug. 19 and asked to pay the company for the charges.
During the conversation, according to records, he admitted that he did not have permission from his manager to make the purchases. Subsequent calls to Kahana have not been returned, and attempts to locate him have been unsuccessful, according to police and court documents.
Fraudulent use of a credit card is a class "C" felony if the value of all money, goods, services and other things of value obtained or attempted to be obtained exceeds $300 in any six-month period, according to state law.
Kahana, a field service representative, accepted the use of an American Express card from Honeywell Technology Solutions Inc. in September 2005.
HTS is a subsidiary of Honeywell International Inc., a Delaware-based company that manufactures civil and military avionics and aerospace products and operates dozens of subsidiaries that handle everything from electrical repair to copier machines.
Kahana was a contract employee working on an account Honeywell has with Hawaiian Electric Co.
In the civil suit, Honeywell seeks possession of the vehicles Kahana bought, restitution in the amount of the outstanding credit card balance and attorney's fees.
Credit-card fraud costs consumers and businesses hundreds of millions of dollars a year, according to the Federal Trade Commission.
Reach Peter Boylan at pboylan@honoluluadvertiser.com.