Sep. 20—The former director of the Maui County Department of Environmental Management and a Honolulu wastewater executive entered pleas of guilty in federal court Monday morning in connection with a six-year bribery scheme that steered more than $19 million in contracts to one company in exchange for $2 million in cash, trips, casino chips and other compensation.

The former director of the Maui County Department of Environmental Management and a Honolulu wastewater executive entered pleas of guilty in federal court Monday morning in connection with a six-year bribery scheme that steered more than $19 million in contracts to one company in exchange for $2 million in cash, trips, casino chips and other compensation.

Stewart Olani Stant, 55, was charged Aug. 31 with conspiracy to deprive the public of their right to honest services. Stant entered a guilty plea to the single count. Milton J. Choy, owner and manager of H2O Processes LLC and Central Pacific Controls LLC, pleaded guilty to a single charge of bribery of a federally funded program.

Choy, a Honolulu businessman, is at the heart of two separate federal public corruption probes targeting state lawmakers and appointed officials.

Starting in October 2012 and continuing until December 2018, Choy, 59, allegedly paid Stant about $2 million in cash, direct deposits, wire transfers, Las Vegas casino chips, first-class airfare, hotel rooms and other items.

In exchange for that money, Stant, who worked as a solid waste division manager for Maui DEM from 2009 until 2015 before a mayoral appointment elevated him to the director's office, steered $19.3 million through 56 sole source contracts to Choy's company, according to the plea agreement.

"I think all of the public is harmed when their public officials don't demonstrate the fidelity and honesty in their relations and how they act, " said Assistant U.S. Attorney Ken Sorenson, who is prosecuting the case for the government, speaking outside court Monday morning. "If your public officials are taking money on the side, they are not acting in the public's interest. They are acting in their own in ­terest, and that is a real problem."

Stant did not disclose any of the gifts from Choy on his county financial disclosure form, as required by Maui County's charter. Maui County receives more than $10, 000 in federal funds annually, qualifying it as a federally funded program.

Stant and Choy were charged Aug. 31—Stant with conspiracy to deprive the public of their right to honest services, Choy with bribery of a federally funded program. Both entered guilty pleas before U.S. District Court Judge Derrick K. Watson.

Stant faces a sentence of up to 20 years in prison and a fine of up to $250, 000 ; Choy faces a sentence of up to 10 years in prison and a fine of up to $250, 000. The government indicated it will seek to seize more than $15 million from Choy and more than $2 million from Stant in forfeiture proceedings.

Stant and Choy are scheduled to be sentenced Jan. 4 at separate times.

During the six years the alleged scheme occurred, Choy made more than 40 deposits or transfers totaling $733, 176 into Stant's bank accounts. Choy also allegedly gave Stant cash, through deposits or in-person exchanges, totaling $644, 570 during the same time period, according to federal court documents.

Choy allegedly paid for $424, 987 in travel expenses—including first-class airfare to and from Las Vegas and high-end hotel stays—for Stant, who traveled and gambled with Choy on multiple occasions over the course of their 30-year friendship.

Las Vegas gaming records document $183, 000 in casino chips cashed out by Stant that he did not purchase, according to federal court records.

"He took full responsibility for his actions, " said Stant's attorney, Cary Virtue, speaking outside of court.

Stant declined to comment. Virtue declined to say what Stant did with the money he received from Choy.

"He (Stant ) lived very well, " said Sorenson. "Anybody who tries to profit off of the public coffers through any kind of illicit or corrupt activities ... needs to be aware that we not only have the tools to come after them, we have the motivation to come after them. We will aggressively pursue anyone who violates their public oath and anybody who wants to corruptly affect the process."

After the U.S. Department of Justice alerted Choy that he was the target of the Maui probe, he became the government informant who helped the FBI set up a sting operation that led to the arrest of two former state lawmakers, both of whom pleaded guilty to taking money.

"He was a valuable asset, " said Sorenson, speaking of Choy's cooperation. "Anybody who knows something who can be cooperative and who does want to work with us, we appreciate that. And we're going to demonstrate that."

While entering his plea with Watson's court Monday, Choy admitted to paying Stant to steer contracts to his company.

"I'm prepared to accept the consequences, sir, " said Choy, addressing Watson in court Monday. "All bribes to Stewart Stant were paid by me. ... I plead guilty, sir."

Choy's attorney, Michael Green, said within 24 hours of learning that federal investigators were on to him, about 3-1 /2 years ago, Choy sat down with federal agents, without an attorney, and "told them everything he did."

"The things that he told them, they were investigating and knew about. There were other things he told them, they didn't know about, " said Green, speaking outside of federal court. "He was complete. He was honest. ... He just kind of gave it up. He spoke to them (federal investigators ) for a long time."

donor to Hawaii campaigns, and his involvement in the federal sting operation that brought down former state Sen. Majority Leader J. Kalani English and the former vice chair of the House Committee on Finance, Rep. Ty J.K. Cullen, made a lot of lawmakers nervous.

As of Monday, 31 incumbent candidates have returned $142, 650 in contributions from Choy to the Hawaii Election Campaign Fund.

"I suspect after today I'll stop getting phone calls from lawyers who have been asked to represent certain people in the Legislature wondering whether or not they're targets, " said Green. "I think as of now this is it. The government kind of cleaned up what they needed to clean up."

Once Choy was arrested for his role in the Maui County case, he helped the FBI and U.S. Attorney's Office by bribing English, 55, of Maui, and Cullen, 41, who represented Central Oahu. Federal court documents outline how the two lawmakers introduced, managed and killed legislation at Choy's request in exchange for Las Vegas casino chips, cash, hotel rooms and dinners for family members.

He was not charged with bribing Cullen and English, both of whom pleaded guilty to taking bribes.

"I think there is a little bit to that old adage 'What happens in Vegas stays in Vegas.' ... From a mental standpoint I think these guys think that, and indeed that's what we found, " said Sorenson, speaking outside of court. "Vegas is one of the tools, I think, that those who want to corruptly influence public officials will utilize in their efforts to get what they want."

in July to 40 months in federal prison for accepting $18, 305 in cash from Choy in exchange for inside information on the Legislature and managing legislation to benefit H20 Process Systems between 2014 and 2021.

Cullen is scheduled to be sentenced Oct. 20.

Also Monday, Maui Mayor Michael Victorino ordered an audit of all no-bid contracts awarded to Choy's companies.

"Allow me to be crystal clear. The events that led to corruption charges involving former Maui County official Stewart Stant and Honolulu businessman Milton Choy occurred during the previous administration, " said Victorino in a statement. "Hawaii's procurement laws ensure fair and transparent handling of government purchases. Whenever corruption undermines the public trust, those responsible must be investigated, prosecuted, and punished to the fullest extent of the law. I cannot, and I will not, tolerate such betrayals of public trust."