Thursday, August 22, 2019
Hawai'i Free Press

Current Articles | Archives

Sunday, February 03, 2019
Lyon Bribery: $240K to Buy DHHL Contract?
By Andrew Walden @ 8:37 PM :: 3072 Views :: DHHL, Ethics

Lyon Bribery: $240K to Buy DHHL Contract?

by Andrew Walden

Frank James Lyon’s guilty plea to federal bribery charges may be only the beginning.  Under the terms, “(Lyon) is required to submit…an accurate and complete list of all business he is currently affiliated/involved with that involve federal contacts.”  

Journalists are already digging into clues from Lyon’s January 22, 2019 plea agreement.  

HNN, January 30, 2019, reports:

… Jim Lyon, owner of the Honolulu-based company Lyon Associates, pleaded guilty last week to conspiracy charges in the alleged bribery scheme. Multiple sources say the bribe helped land a $2.5 million DHHL engineering contract on Kauai.

“It’s a system-wide problem, and it’s government graft and corruption," said Mililani Trask, a native Hawaiian attorney and cultural activist. “It’s $240,000 for this incident, but how much was paid for other incidents?”

Sources say that Lyon’s firm was hired in 2010 to assess the safety of four dams that the DHHL owned in the Anahola area of Kauai. After the 2006 collapses of the Ka Loko Dam, reservoir owners were required to assess the safety of their dams….

Cedric Duarte, DHHL spokesperson, tells Hawai’i Free Press: “The DHHL has not received any target letter or subpoena from any authorities related to this case with Lyon and Associations.  As such, we are unable to confirm if this complaint is referring to our department.”

The State Professional Services Awards database (search “Lyon Associates”) shows Lyon as primary or sub contactor on dozens of State contacts between 2009-2015.  Each of these contracts could be a target for investigators.

The $2.5M contract awarded October 28, 2010, for “Design and Assessment of five DHHL owned reservoirs in Anahola and Kekaha” appears to match the timeframe and amount in the indictment.  A 2017 record shows Lyon applying for a DLNR “Dam Safety Permit” for the project.  

The database (scroll right) also lists six DHHL employees who may have played a role in awarding the contract. 

Lyon’s indictment shows $240,000 in bribes paid out annually from March 31, 2011 through December 12, 2016, to “Co-Conspirator 3 … an employee of ‘State Agency’ from at least approximately 2008 until at least approximately 2012.”  These sums were them passed on to “certain State Agency officials who would have influenced the award….”  Other corrupt payments went to a “relative of Co-Conspirator 3, purportedly for consulting services….”   

In a separate whistleblower lawsuit filed September 28, 2016, former Lyon Associates corporate President Ronald Gonzales asserts he informed owners Frank Lyon and his deceased father James Lyon of “criminal property damage, failure to pay wages and salaries, falsified and fraudulent official documents, sexual harassment of employees and terroristic threatening.”

Gonzales names 30 witnesses including a Federated States of Micronesia official and numerous employees of Lyon and other building contractors active in Hawaii, Guam and Micronesia. 

AP reports: “Lyon faces up to five years in prison. He’s scheduled for sentencing on May 13.”

---30---

Link: Lyon Indictment

Link: Gonzales Suit

Link: State Professional Services Awards database

Related: Lyon Bribes: Caldwell Appoints Crook to Zoning Board After Receiving $16.5K

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

Affordable Hawaii Coalition

ALEC

Alliance Defending Freedom

Aloha Conservative Alliance

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT