State and federal agencies have begun a criminal investigation into the finances of the International Brotherhood of Electrical Workers Local 1260 after its leader, Brian Ahakuelo, was scrutinized for allegedly using union money to pay for personal expenses and hiring immediate family members at high salaries.
The state Attorney General’s office, Internal Revenue Service and U.S. Department of Labor began the probe after the IBEW parent organization placed Local 1260 in emergency trusteeship on May 6 over concerns of financial mismanagement. Ahakuelo and 18 staff members are on paid leave during the investigation.
“We can confirm there is a criminal investigation and that the local has received a subpoena for information in connection with that investigation,” said Harold Dias, a former state AFL-CIO president and IBEW international representative, who was appointed trustee of the union. “We have been and will continue to cooperate with the appropriate agencies conducting the investigation. Beyond that we don’t know the targets of the investigation nor can we comment further.”
Local 1260 represents more than 3,200 electrical workers, including Hawaiian Electric Co. and TV station employees.
Ahakuelo, 55, former business manager and financial secretary for Local 1260, along with his wife, Marilyn, director of community services, retired from the IBEW in late May after vowing to stay in the position and fight the allegations against him. He originally announced his retirement May 10, then two days later rescinded his statement before retiring for good.
Ahakuelo told the Honolulu Star-Advertiser on May 12 that he secured legal counsel and was considering litigation against the international union, which he said has made false allegations against him. He also said that he was considering a run for vice president of the ninth district of the parent union. He could not be reached for comment Wednesday.
The IBEW’s claims against Ahakuelo include alleged spending violations from 2014 to 2016, ranging from paying for family trips to Las Vegas to covering the legal fees of his son Brandon in a criminal case involving unauthorized entry into a motor vehicle. Another involved Ahakuelo paying off a $24,000 bank loan for a truck initially owned by his wife.
Ahakuelo also was criticized by subordinates for his spending of union dues, including the hiring of five immediate family members.
The former union leader earned $201,712 in 2015, while his wife was paid $105,119, according to Local 1260’s most recent financial report filed with the U.S. Department of Labor. Brandon Ahakuelo, the union’s chief of staff, received $143,274, while daughter-in-law Neiani, an executive assistant, earned $77,656. Ahakuelo’s sister-in-law, Jennifer Estencion, senior executive assistant, had a salary of $101,855, the filing shows. Ahakuelo hired a fifth relative, son-in-law Eric Falkner, in March as a training coordinator/organizer for $125,000 a year, though he lives in Las Vegas.
The union terminated the family members on May 24.
