Letters of support

The Honorable Susan Oki Mollway
ChiefJudge
United Stated District Court
300 Ala Moana Blvd. ·.
Honolulu, Hawaii 96850-0338
Dear Judge Mollway:
September 11, 2015
My name is Torkel Patterson. I am a legal resident ofHawaii but am currently
living in Tokyo where I am a director Central Japan Railway, a publically
listed company in Tokyo. I am also on the Board of Governors ofPacific
Forum CSIS, a Honolulu based foreign policy institute. I understand that my
U.S. Naval Academy roommate, AI Hee is being sentenced for a tax crime.
And it is on this matter that I am writing to you, to share my appreciation ofAI
Hee's character and his contribution to society, and to seek consideration of
leniency in his sentencing.
I first met AI on July 61
1972, when we were both, I believe, 17 years old. He
has been my best friend every since that date. On that day we were sworn in to
support and defend the Constitution ofthe United States, and began our life as
Naval Academy Midshipmen, and I began my friendship with the man who
will be appearing before you for sentencing. I know that AI did not take this
swearing-in lightly. His father had served in the Army from Hawaii, and was
surprised when his son decided to go the Naval Academy. AI wanted to serve
his country and make his father proud ofhim.
Having grown up in Southern California, I was unprepared for what I saw from
that first day at the Academy: Prejudice. I saw it towards the African
Americans and I saw it towards the Asian Americans. I know that AI felt it and
that it bothered him, but he made friends easily and was a natural leader; soon
it was apparent that AI was going to be there to stay and there would be no
bullying him out ofthe place. AI was very intelligent but fun loving, and had a
passion for current events. When I asked him why he was watching TV every
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night while I and others were studying, he said it was because there was a
senator from Hawaii who was participating in an investigation ofthe President.
At that time I had no idea who Senator Inouye was, but I knew that AI admired
him and saw his cool, yet strong, demeanor as a role model.
Although AI was not Mormon, he was taken in by a Mormon family with
Hawaiian roots that frequently hosted him on the weekends. One weekend AI
recruited me, and others, to work as temps for a moving company in order to
move a library; we had no idea why, we just did it because AI asked. I found
out years later that the money we earned (which we never expected) was
donated so that one ofthe children ofhis host family could go on her church
mission abroad.
AI is quite generous ofspirit and purse. I have always known him to be ready
to help friends in need; he would do anything possible to help a friend, and he
would do so with a big-brotherliness that was sincere and long remembered by
the many who have sought his counsel and support. My wife has frequently
confided in AI, as have my children; I have no idea what they talked about as
AI is good at keeping confidences, but I know that he has helped them.
AI is a loving husband, father and grandfather. I have on numerous occasions
watched him care for his children when they were babies, and I have seen him
care for his grandchildren. At frequent times he is the principle care giver. His
support is not one ofjust watching part time; AI has cared and cares for the
children as ifhe is a mother, not a father. It is amazing, really, to seem him
with the babies. There isn't a more dedicated or loving caregiver. It was the
same when he visited his mother in the hospital when she had multiple
amputations. AI was there all night, almost every night, to be with her in her
final months, weeks, days and hours.
AI has a special relationship with his father, whom he takes every weekend to
work with him at his office park. Mr. Hee (the father), lives with and is cared
for by Al's son, who has been taught compassion and responsibility by looking
after Mr. Hee.

When one of Al's friends was lost at sea while boating with his wife, AI took
care ofhis grown son and helped him through the tragedy. The son has
repeatedly told me how much AI' s advice has helped him get sorted since the
incident.
AI has spoken to me frequently about the need to help Native Hawaiians. His
commitment to them is real; he employs them whenever possible and his
business models are based on providing better service at the cheapest possible
price to the Hawaiian community. While others talk, AI does. He has been a
frequent supporter ofHawaiian concerns, from King Kamehameha Schools to
businesses that employ Hawaiians. One example was the crew that did the
remodeling ofhis home in Kailua. Even though there were more efficient
crews available, AI would hang with them and every night come home early to
talk story, feed them poke and provide encouragement.
Sandwich Isles Communications has been one ofthe largest employers of
Native Hawaiians in the state providing state ofthe art telecommunications
services to Hawaiian Homelands. Before that AI tried to bring new technology
and capacity to end brownouts that were occurring on Hawaii. His business
model was based on utilizing Hawaiian Homelands and hiring Hawaiians. He
was told by lawyers ofthe incumbent utility that if he agreed to build only one
power plant then they would allow it. Ifnot they would tie him up with a legal
fight indefinitely. AI would not agree to this condition; but unfortunately was
unable to overcome their efforts to stop him.
The point ofthese examples is that AI has been committed to improving the
livelihood ofhis community (Native Hawaiians) for most ofhis working life.
Everyone who knows AI knows that this was his motivation for what he tried
to do. He always takes very good care ofhis employees and they are extremely
loyal and committed to their work.

While recognizing and respecting that AI was convicted by a jury ofhis peers
ofcriminal tax evasion, I ah1 shocked to consider AI a felon and a criminal. AI
has always been loyal to the government and to the rules ofthe state. He sought
to play within the rules ofsociety as he understood them to be enforced; when I
read the indictmentagainst Al.in the paper I was taken aback. Having worked
in Washington DC for much ofmy life in and out of government, and knowing
AI as well as I do, I could not ever envision that he would act in an
intentionally criminal manner. As he is my best friend, I know him very well.
He is not, in his heart, a criminal.
I was with AI and his wife, children and baby grandchildren within an hour of
the jury reporting its conviction. I can tell you without exaggeration that they
too were shocked and devastated as individuals and as a family by the news.
However what impressed me most was the love I saw expressed to each other
by siblings, and by the parents to the children. And nothing interrupted the
sweet way in which AI cared for the grandchildren, holding them and feeding
them and comforting them amidst this moment ofpersonal and family anguish.
AI thinks strategically and is quite practical. I'm sure as he faces the real
possibility of incarceration, he is taking the necessary steps to care for his
family and to ensure that his employees can continue to execute his vision for
the State. Having said this however, I know that it will have a definite impact
on them as he is the guiding light ofboth his family and his business. In so
many ways he is the soul of Sandwich Isles, as such his not being there as an
everyday presence will have a negative impact on the direction and execution
ofthe company and the cohesiveness ofhis family, not to mention on the
affection and care he directly bestows, in the tenderest of ways, on his
grandchildren.
Al's health has never been good. He has which prevented him
from continuing his career in the Navy and which has required him to now
everyday ofhis life.
Additionally he has had to slow down considerably since
though you wouldn't know it unless you know him well. I can only imagine

that his life would be shortened by incarceration, but I have no medical
knowledge to support this belief.
I apologize for writing such a long letter, but I did so in the hope that it would
convey the real AI Hee as I know him as you consider the appropriate
punishment. Given that a jury has decided he has intentionally stolen from
society, it is appropriate that he repay what was taken and also pay a fmancial
penalty for this financial crime. However I ask from the bottom ofmy heart
that you consider leniency when considering jail time. When AI swore his
allegiance to the Constitution ofthe United States he meant every word ofit. I
believe that he still does.
Thank you for considering this statement.
Torkel Patterson

Gordon C. O'Neill
September 11, 2015
Chief Judge
300 Ala Moana Blvd.
Dear Judge Mollway;
My name is Gordon C. O'Neill and I am writing on behalf of my friend Albert Hee. I am a retired United
States Marine Corps Colonel. In 2006, after thirty years of active service Ijoined the Potomac Institute
for Policy Studies in Arlington, Virginia. I am currently the Director of the institute's Center for Emerging
Threats and Opportunities which provides research and analytical support to the Futures Directorate of
the Marine Corps Combat Development Command in Quantico, Virginia. I am aware that Albert will
soon appear before you to be sentenced for a tax crime of which he was convicted in your court. I have
known Albert since July of 1972 when we entered the United States Naval Academy. We were squad
mates during the challenging period of military indoctrination commonly referred to as "Plebe
Summer''. Over the following four years at the Academy, Albert and I formed a close and lasting
friendship that has continued for forty three years.
As a Midshipman, Albert was thoughtful, energetic and trustworthy beyond a doubt. During periods of
shared adversity, especially during our first year, his quick wit and affable personality helped many of his
classmates cope with the pressures of strict military discipline and a rigorous academic environment.
Always quick to grasp the essence of newly introduced concepts in the classroom, Albert was also very
generous with his time and willing to assist those who were having difficulties, whether it was with
Calculus, Chemistry, or just a tough day in general. He helped me personally on at least one occasion
when I was questioning why I was at the Academy and whether or not I wanted to stay. His thoughtful
insight and friendship helped me to see the larger picture and stay the course to graduation.
After graduation from the Academy, Albert served his nation honorably as a Navy Supply Officer. In this
capacity he was entrusted with the leadership, professional development, and well-being of many
enlisted sailors under his charge. He was also accountable for high value supply accounts that required
expert management by an officer of great initiative and the utmost integrity. After fulfilling his active
duty obligation to the Navy, Albert returned to his beloved Hawaii to strike out on his own.
While traveling to and from various overseas assignments or while embarked upon Navy amphibious
ships, I had the opportunity to visit Albert and his wife, Wendy on numerous occasions of over the years.
Just as he was during our time at the Academy, Albert has always been very generous with his time and
hospitality. On occasions when I only had a brief or unplanned layover, I would call AI and he would
drop whatever he was doing to pick me up and welcome me to Oahu. When I visited with my family and
during my one assignment at the Pacific Command Headquarters, the Hee's always welcomed us in their
home with much Aloha. When my oldest son needed a summer job, Albe.rt employed him on the

Waimana property in Mililani. This gave him the opportunity to earn some college money and learn
about honest and tough manual labor.
As Albert built his business and entered into various enterprises, he had a vision to bring reliable
telecommunications services to the Hawaiian Homelands. He has followed this vision and it has been
his passion for over twenty years. What strikes me most about Albert is not only his energy and
ingenuity in accomplishing his goals but his total commitment to the success and well-being of his
employees and colleagues. I have visited him at the office and in the field and have observed the high
regard in which he is held by all of his associates. It is a level of esteem that is usually reserved for
leaders of the utmost effectiveness, compassion, and honesty.
I was surprised and saddened to Jearn of the investigation into Albert's tax filings and his subsequent
indictment and conviction on charges that I believe are completely out of character for my friend of over
forty years. In my observation and opinion, Albert Hee is not a man who would knowingly or willingly
violate the law. I know that this whole process has been an ordeal that has taken a heavy toll on his
entire family andmay have lasting effects well into the future. Moreover, those that rely upon AI for
their employment are facedwith a great deal of uncertainty about their own future security. Please
· consider that during this very trying period in his life Albert has continued to ensure the integrity·of
telecommunications services to Hawaiian Homelands and has continued to look after the interests of his
employees at Waimana Enterprises.
I ask that you consider leniency in sentencing Albert Hee. He is a man who has honorably served his
nation in uniform and continued to do so throughout his professional and private life. Not only would
incarceration adversely affect his family and employees but it would deny him the opportunity to
continue serving his community, particularly the Hawaiian Homelands. Please consider financial
restitution, probation and community service in the best interest of justice. I humbly thank the court for
considering my statement while deliberating on Albert's fate.
Respectfully,
ffi,cd/JGordon C. O'Neill
Colonel, USMC (Ret.)

Chief Judge
United States District Court
300 Ala Moana Blvd.
Honolulu, Hawai'i 96850-0338
Aloha Judge Mollway!
September 11, 2015
My name is Heather Giugni.
Albert and Wendy Hee have been lifelong friends and I am writing to you in that
capacity. We all attended Kamehameha Schools together and ended up in higher
institutions on the East Coast. I don't recall when I first introduced Albert the plebe to
my parents but I can tell you they loved him. My mother - who was fond of putting
anyone to work who appeared at the front door- noticed that this young man did not
bolt when asked to clean the gutters of the house. In fact he frequently visited them

while attending the Naval Academy in Annapolis, helping them in any way possible. He
was generous and responsive and as they grew old and fragile, his caring for them only
increased. At the same time he also grew close to my youngest sister who has polio so
you see I am very grateful for his friendship and his genuine care of my family and
people in general. This is a loving Albert that I know - supportive of family, friends and
community.
I barely know Albert the Businessman. I am obviously aware that he has been a
successful entrepreneur who, against all odds, succeeded in building an institution from
an idea- certainly no easy task in our State. And I also know of the area of interest he
has pursued- but until recently I knew nothing of his business practices.
While I am choosing not to share my opinion regarding those practices including "tax
crime" which I learned about in the news, I want to take this opportunity to ask you to
please take his family into account when you consider his sentencing and choose
leniency!
Thank you sincerely for considering my request.
Humbly and in gratitude,
Heather Haunani Giugni

September 15, 2.015
Chief Judge
300 Ala Moana Boulevard
Honoltllu, HJ 96850
Dear Judge Mollway,
My name is Gina P. Giugni and I have known Albert Hee for about 40 years. Albert was a
classmate of my sister Heather at Kamehameha Schools, but he really entered my life when he
was a plebe at the United States Naval Academy.
Over the next 4 years .Albert spent many weekends at our house, playing chess with my father,
helping my mother with her endless list of chores, plumbing! wiring, etc. He was a hard worker
that never shied away from work. He became.the son my parents never had. When we moved
he corralled 3 of his academy friends (with and moved our household 50 miles away. I
had him install a cassette player into my car and I remember complaining because he was
takingall day, but he was a perfectionist and when he came up from under the dashboard he
said "Gina, a job isn't worth doing u.nless it is clone right".
Albert gradu;tted, start.ed on his career, visited with my parents when he c;tme to town and my
father met him when he was in Hawaii. Their relationship never stopped. About12 years ago
when my f11ther's healthbecame an issue Albert called me. I hadn't spoken with him for about
20 years and he.said "It's your long lost brother Albert". He reached out to me because he was
concerned with my father's health and had some suggestions of what Imight wa.nt to do.
During the years of declining health he looked afte_r rny father, when my dad was in Hawaii,
Albert's. office was my father's have.n to take a nap; play a game of chess, and he would even
rub mydcrd's feet. He would try to protect my father from the sharKs that were circling, the
ones who could smell the blood in the water, wanting to take mY father's position, the man
who had the Senators ear,the man who was the Senators .closest confidant, the only man the
Senator could really just be Dan with.

:; ...
F..
;.
When my·dad passed away, he came up for my dad's memorial. He. helped us.with the funeral
in Hawaii, in particular he arranged for amilitary salute because we were not able to get that
done. He was there for my sisters and my mother and he spoke at his burial.
Twelve months later we were in the same situation with my mother, he rushed to her bedside,
but missed her by hours.. And once again, he spoke at her funeral.
·
remained friends, whenever Iget horne we get together for a meal and when.he's on the
east coast Igo and meet him. He has always made himselfavailable to me, always just a phone
call away.
On Dec.ember 18, 2014 Icalled Albert; Iwas having trouble getting leis shipped to the east coast
for mydaughter's wedding on December 201
h. ·He said, "I'll try myb.est". Boxes of beautiful
leis arrived themorning of the wedding. It wasn't until months.laterthat I. discovered he had
been indicted the day before my call. He never said a word, never let on what he W<!S going
through,. he wanted us to have a memorable day.
My parents loved Albert like a son and I know he loved them; he even made them godparents
to his oldest daughter (Ho'o). While I'm sure they'd be disappointed to see him in this
situation,they wouldn't abandon him, they would be right there with him, because if there is
one thing my father believed in, it was loyalty. ·
While Idon't know anything about Albert's business dealings, Iknow him. to be a fiercely loyal,
supportive, devoted man, who loves his family. I'm not sure if my letter will affect you in any
way, but just know the Albert Hee Iknow, is a good man with a generous heart. Please show
some leriiehty when considering his sentence.
Respectfully,
Gina Pilialoha Giugni

Sept 9, 2015
Chief Judge
300 Ala Moana Blvd.
Honolulu, HI 96850·0338
Aloha Moilway,
I have been a dose friend of Albert He.e since we both started kindergarten in 1959 at Kamehameha
Schools. It is with a heavy heart to witness all these years culminating in this life changing event with
Albert's conviction of tax fraud. Knowing Albert in his childhood years, I knew that he would have a
strong character built up by a strict mother and supporting father, Getting the chores done was always
top on the list before having any fun. His rather taught him thevah.le in cloih)l a good job and his
mother taught him the i;liscipfine to stay focused to sure the jab gets done. I am still amazed to
this day by Alpert's ingenuity and abHity to identify a need and to build a solution that works. It
was hard to forget the time in grade school when he constructed a canoe uslng fiber glass sheathing
over 2x2 wood frames. He actually convinced me and another classmate to take the canoe out on
Kaneohe Bay ahd go fishing. No fish, but we survived. In high school, Albert became one ofthe highest
ranking officers in our class in Kamehameha's ROTC program and excelfed in wrestling and water polo.
Albert's achievements at Kamehameha continued when he was accepted into the United States Naval
Academy. During this time I attended the University of Hawaii's School of Engineering while Albert got
his Navy commission !It the Academy. I understand from his stories about the Academy that other
cadets treated him with great respect believing he was a "crazy" Hawaiian from Hawaii. I think it had
something to do with his boxi11g and wrestling pursuits and his dedication to doing well. Albert also
talked apout the dose relationship he developed at the time with BenryGiugni, aide to Senator Inouye.
Albert likened Mr. Giugnl to his father away from home. The relationship helped Albert keep his
connection with Hawaii and to value friends from Hawaii. It also helped him deal with the separation
from his family in Hawaii. J think in his mind he knew that he could never live away from home.
Due to health reasons Alb,ert was unable to complete his service obligation to the Navy. He ended up
marryin!l his high and ;tg ror.aise hisfamily. Some
people said that Wendy was the brains and AII:Jert the brawn. Wendy had re¢eived her master's .;legree
in planning from Harvard University so there is much truth to the statement. She was actually the
anchor for the family whlch aUowed Albert to pursue IJis goal of starting his awn cpmpany. At this time 1
was also pursuing my career working as a civilengineer for a large company in San Francisco. Wf! both
started are families about the same time, me with one son and Albert with one son and two daughters.
Every summer my wife and I would always spend our vac<ition in Hawaii and we would always make
time to spend with Albert's family. I could see that Albert raised his children with the same values and
discipline instilll!d in him by his parents. It was a rough time for Albert going from working at a good job
with Thea Davies to sel!ing new!;papers out of his home. His stint at Theo Davies provided additional
basis for why A{bert felt .the need to help oth.er H<!walians.. He told me about seeing a le.ase ci.ocument
for his aunt's prtlperty in Kona. One of the provl$ions in the lease statedthat if the landowner, his aunt,
did not make any effort to renew the lease then ownership of the proptrtywould transferto the lessee.
This is ju:;t one legal method that was used to "steal" lands from its Hawaiian owners. And it is also one
of the reasons why Albert looked for business opportunities that eould benefit Hawaiian Home Lands.

I worked for fourteen years in San Francisco from 1978 to 1992. In 1992 lniki!lit Kauai and Albert was
able to kick off his cogeneration power plant project that was going to be located in Kawaihae on the Big
Island. At the time the Federal Government was promoting privately funded power generation projects
that also use its waste energy to produce a marketable by-product. The federal Act required a public
utility to purchase power from a co-generator before using its own generated power. The project would
have added hundreds of thousands of dollars a year in revenue for Hawaiian Home Land, thousands of
gallons per day of potable water th;tt Hawaiian Home needed to develop Kawaihae and 60
megawatts of electric power for the Sig Island. It was awin/win sltvat!on for everyone except Hawaiian
Electric. It also enabled Albert to offer me ajob and bring me back home to HawaH. one ofAlbert's
goals was to create jobs that would keep kids in Hawaii or biihgthem back home from the mainland.
Albert had the ingenuity and business awareness to secure private financing from Diamond Energy, Inc.,
asubsidiary of Mitsubishi Corporation, to fund the project valued at over eighty miHion dollars. And it
could not happen without the full support of the current Hawaiian Home land Chairperson, Mrs.
Hoaliku Dr)lke. Hawaiian Horne land saw the opportunity that Albert offered and full supported him.
We literally battled forfive years against Electric's delaying tactics who had the subtie support
of the Public Utility Commission. Albert was going up against some of the most powerful business
individuals in Hawaii who created a !:1arrierthat was too high to ,cliitb. It is my opinion that these
actions from the past are tied into Albert's current demise. li1 fact these actions were not just against
Albert, but were actions against Hawaii Home land that impacted HHL's ability to build more
homesteads for native Hawaiians. It was also during this time period that.Aibert experienced at least
two incidences of Both incidences ended up in the
emergency room at Castle Hospital. The second occurrence almost ended in Albert's car at the entrance
to the emergency room. Luckily hospital personnel were alert and able to carry him into the hospital to
administertreatment.
At the end of the KawaH1ae Co-generation project there were f!ve persons working forWairnana
Enterprises, Inc., Retired Admiral Robert. Kihune, Sandie Wong, Robin Kamakahi, Albert and I. !twas
Albert's foresight and vision that kept his focus on identifying any utility based opportunities that could
benefit HHL, Before the end of tne power plant project Albert became aware of a federal program
whose mission was to build electricity and telephone 'infrastructure to the underserved rural ar:eas of
America. This program provided low interest loans to assist with the construction and operation of rural
telephone companies called Local Exchange carriers (RLECs}. At the time there were over a
tltOU$>10d RLECs throMghoutthe forty nine .states. Also tied into this prosram is the Universal Service
.•. p[qgtam .to s,uppof!the
high cost to cortstruct rural fnfrastructwe. There were so m;my pieces to th.e: puzzle. of to
standing up a new Rural Local Exchange Carrier and it could not hove happened without Albert's vision
and guidance. We received strong support from Hawaifs Congressional delegation with letters to the
FCC urging approval of our appliqtion for Universal Service Funds. It was more than three years:from
inception before sandwich Isles Communications, Inc. (SIC) was established and funded by the Rural
Electrification Agency laterk"nowo as theRural Utility Service {RU!;;). One ofthe key pieces of the puzzle
was the exclusive li!;ense issuedto SIC by DHHL to provide telecommunications services to all lands
adrninisterecl by DHHL We could not have qualified as a Ri.EC withoutthe lieense from DHt!L With this
license and DHHL's to .l)uild !)ol'nestead projects, SIC was able to secure loan agreements from RUS
for $40 million to build lntrastrud:ure on the outer is1;mds, $27 l'n!l!loh for infrastructure on Oahu and
$338 million to build afiber optic network connecting all DHHl property, With this funding and
Universa'l Service support we were able to save DHHL millions ofdollars in infrastructure cost in the
construction of their subdivision projects. SIC continues to pay for the tost of telecommunications
infrastructure for DHHL projects even though funding from RU.S has stopped and support from Universal

Service Fund reduced to a fraction of itsoriginal amount. The reduction ofthe Universal Service Support
was implemented by the Federal Communications Commission without out any recourse for companies
like SIC who had incurred large debts in the construction of its telecom infrastructure. We have made
major changes in the way we do business. We have reduced our cost of construction and operations
and in the process of renegotiating our debt service. Although Albert is not involved in the day to day
business of SIC he. was the foundation of the company. The reduction in Universal Service support has
created huge cracks in SIC's foundation and in my opinion Albert's foresight and ingenuity is needed to
keep the foundation from fciling. Today SIC has almost seventY employ(les and we maintain almost
four thousand HHL customers.
1hope the message 1am trying to convey is clear that SIC would not be wh<are we are at without Albert's
direction. We are in a difficult period not only because of Albert's conviction but also due to changes in
the support programs for Rural Telephone Companies. Wbi1e we are in a difficult period it is without a
doubt that the trial and Alllert's conviction hasplaeed.a tremen.dou.s i!mount of rn.eotal grief on his
family. His dedication to the business is matched only by his dedication to his family. He was not
creating acompany to be sold to the highest bidder. Albert was creating aiegl!!CY to be passed on to his
children and their children. Over the past two years Albert became agrandfather two times. You can
see the joy he has with Rosie, his first.wandchild. She has become a daily presence at the office bringing
a sense of family to everyone I his feeling of being incarcerated and separated from his
family is becoming an unbearable burden as the date of sentencing approaches. At a period in life when
most people are thinking aboutretirement and spending more time with their children at1d
grandchildren, Albert has to be concerned about the survival of his companies and the welfare of his
wife, his children and his grandchildren.
As my final statement, I would like to request leniency in Albert's sentencing. I ask this as aclose friend,
as a.natiVe Hawaiian and as a member of his extended Charta.
Respectfully,
'l (! di ....,.......,,,..
Rodney Kaulupali

September 28, 2015
Chief.Judge
United Smtes District Court
300 Ala Moan:t Blvd.
Aloha Judge Moll""'Y'
Maha!o for the opportnnity to provide this statement to the Court for consideration in the
sentencing of Albert Hee..My name .is Lani Ma'a Lapilio, and I AI Hee's fust cousin. 1l
and I wet<' raised in a fatnily strongly rooted in Ha:waibn values such as aloha, caring for
'ohana and we live by these a.nd other <.:ultu.ral principles. Prom " young age we were taught
to work hard and be the best at whatt.'>er. we did so we coeld help othet-s that were less
fortunate tbati us.
I know that Al is being sentenced for various tax. cdmes. It is my hope that by sharing some
of my personal experiences, you ,.,1]J have a broader understandiilg of who this man ttuly is.
He has had a tremendous positive influence in my life and so many others, especially
Hawaiian homesteaders.
My grandmother "-'llS one ofthe first to be awarded a homestead lot in Keankaha, Hawaii, a
small town neat Hilo. :My mother VII.S born in Keaukaha and so was I. Mo.st of out family
still remain on homestead land, however in search ofa brighter future, at a young "l,"'• my
parents moved fr.om Kcaultaha. to 0'alm so we have improved educational
oppottunities and a better chance f.or success in life.
You can i11:mgille the excitemt:nt I fclt when AI told me of his vision t<l bring broadband
telec()!l.lmunicat:ions to Hawaiian. home lands. W!e knew would be a tremendous game
changer for Hawaiian families fot generations to <:<'>me. rwas present at the Dept. of
Hawaiian Home Lands (DHHL) Colnmissionmeeting when .Al shared his pla:as about the
fiber optic network and technology that he could provide to new homesteaders at no cost
for installation, At that tiine, infrastructote costs averaged $30,0()() a lot s<> this was
potentially huge savings for the Dept. that could go towards d.evclopii1g other lots for
homesteaders.
A few years later when. plans for the Sandwich Isles Communicati,ms {S.l:C}
telcco.rnnmnications network started cotuing into fruition, Al asked me to join a team of
lawyers to help him fuciiit>ate the planmng.and pertnitring process and er1gage in commnnity
ourrea.ch with the hotueste-4ders, native Hawaiian organizations and smte and federal
agencies. AI provided .me the opportLlnity ro start rny own culmral consulting business and
SIC became my fust client.
Community outreach for SIC took us deep into Hawaiian communities. TI1e SIC
network was a very difficult project to explain because there were m.any entities and

technicalities invohred such as the Public Utilitit'S Coll111liilsion regulations and the DHHL
license whiclllitnited the serving to new homeste<tders, etc. Although.Al is an e>::tretuely
bpsy pep;on, I could always count on hitn to make time to attend these meetings and directly
address any questions or concems that were raised. Everyone appredar.cd chat Al took the
time to personally meet with them and they knew they were very fortnnare to have
broadband access including ihe full scxvices of the internet fut educational, bu$iness and
recreational pursuits at affordable rates. For many homesteaders it rnadr a difference in
being able to stay in H.awaii or having to leave tile islands in order to fi11d wotk..
In 2005, nne patticular very rural homestead community on Maui, refused to allow SIC to
bring in the undersea cable because. they were nor ready tn emhtace the fiher optic
broadband technology. Jn a meeting last veek J.rnn into the leaders of this community and
they expressed theit u·emendous regret at not accepting the opportunity at the tim.e as they
now understand the ituportance ofbroadband for their children and grandchildren's future
and they feel they will be left behind in the digital world.
Last week I v'isited Kahikim:ii which is the most rural Hawaiian homestead in the state
accesb-ible <>11ly by 4 wheel drive vehicles where people live totally off the grid. 1'here is no
electricity or running water for the dozen or so famili.es th-.tt live in this community however
they have telephones and internet, thanks to SIC. From their it takes an hon:t to get
down to the main highway and then an hout drive to the nearest tovn. To get to school each
morning the children must get up at 4:00a.m to begin the long t:tt>.k to school and then travel
the same amooot of rime and distance back home in the evening. We spoke wich a young
girl in the second grade who depends on the SIC's internet in ntder to do ller homework.
Without this in1portant connection she would not have access to the outside world due to
her isolated living conditions. The :fittoilies that live in Kahikinul ate so gratefUl to have
inte.rnet service as well as phone service especially in emergency which
oofottunately happens a lot due to bad weatlle.r, the bad toads or in the case ormedical
emergencies. lvlany of them use the intemet to conduct their businesses which is integral to
li.ving theit lifestyle of choice.
Al's vision for the SIC netwo.rk is anlazing by any standard and tn his etedit be had the drive
and initiati,,e to put together an intlovntive business model to better the lives of Hawaiians.
W'hen the lives of Hawaiians are improved, the liv-es of everyone in the la:tger community is
improved as welL Tclecnll:llnunieations is such a highly regulated environment yet.Al has
.managed tD create, build and sustain a company that truly stands fm advancement and will
serve homesteaders for generations to come.
When we were growing up, our 'ohana struggled to make euds meet. A! was fortunate to
have .received an award m attend U.S. Naval Academy however fo.t my parents, there was no
way that I could attend a mainland college as we could not affotd it. Detennined to have the
experience of at least one year ofcollege on the mainland, I was fortunate to he ac.;epted to
a college exchange program at the University of Oregon. At that time, ,Albert and Wendy
were living on the east coast and because .AJ knew that I may not ever have the opportunity
again, he invited me to join them for the wlntct break instead ofgoing back home to Hawaii
fot Christmas. We had a wondetfultime visiting many cities and historic places in New
York, New Jctsey, Connecticut artd Massachusetts. One unfortunate occurtence happened
when someone broke inm our van and stole all of our personal belongings. My Hawaiian

bracelet that I received as a graduation gift, wa$ stolen and in Al's typical generous style he
gave me the <:ntite .insurance proceeds to buy myself a new Hawaimn bracelet. He would not
take no for an answer as he knew the sentimental value assO<;iated with this gift despite the
fact that he and Wendy lost way more valuable items than. r did. During this time, Al took
the opportunity tn encourage me to pursue attaining a law degree and become the first
attorney in the family. With hi' continued support and encouragement, I was privileged to
attend law school and have sOL>ght to use my education and experience to benefit not only
my family but also the larger community ove.r the past many years.
A meeting 3Xranged by AI with Senator Daniel K. Inouye .in the 80's tesultt:d in my being
hited as an Intru:n for the Senator on Capitol Hill, Washington D.C. The experiences that I
gained wetc so valuable and I got to work on rnnny impottant legislative not to
mention sitting .in on Congressional and Snptemc C.<Outt hearings. That opportunity clll!.nged
my life not only fwm the educational standpoint hut also the pe:rspectives gained and the
fdendships t11ar: W.ve lasted O<'et the years.
Al has always been an e.xtren1ely loving and thoughtful family mel1lber and this is especially
evident in the unconditional love he has for his parents. While his mother spent her last four
months of life bedridden in the hospital, Albert was there every single day or evening and
did not leave the hospital tultil she fell asleep. I k11ow this beomse l was there during the
day; and ftankly she always had one eye on the door waiting f-or him to 3Xtive. She was
dying in 2012 when he was going through hh; otde!tl with IRS yet he gave her his undivided
attention holding her hand every single night until she fell asleep and then he would go
home. Al a.r:r.anged for
his son Kupa'a to live with his grandfather to look after his daily needs. On the weekends A!
picks his father up and takes him to the Mililani office so his father can do meaningful
chores to keep his mind and body active. AI then takes his father to dinner before taking him
horne at night. No matter how busy he is, il.l's weekends ate dedicated to time spent with his
dad and the resc .of the family. His patents have always been a top prinrity .in his life.
l have not discussed ill's health issues as I villleave that for his immediate family to covet
however I have been with him .in many life threatening situations and I ean personally attest
to his fragile and ill health. I ail1 ve1y concerned that his health will be adversely impacted in
a prison type setting.
Judge Mollway, tlll!nk you very much for reviewing and consideting my testimony. Al is not
a greedy businessman as portrayed in the media, mther he spellds his time doing t11in.gs ro
help people and he has made a tremendous diffctenee ro better the lives of Hawaiians. I ask
you to please he .lenient <-:ith him as I know he W.s leamed a hard Jesson. un.d deeply regtei:s
the consequences of his accion.s. The.great humiliation and shame that he has brought upon
the family has .indeed caused him great suffering and r that he is remorseful
.Lani.Ma'a .Lapilio

}Vice Admiral Robert Kalani Ulchi Kihune, USN {Retired)
September 15, 2015
Dear Judge Mollway,
lam Vice Admiral Robert Kihune, USN (Retired). Iwas hired by AI Hee, the President and CEO of
Waiinana Enterprises, ln 1996to originally negotiate a power purchase agreement {PPA) with Hawaiian
Electric Company (HECO) for an electric power plant that he had planned to build on Hawaiian
Homelands on the Big island. Ayear later, this project was terminated because HECO would not agree
to a PPA. l was then asked.by Alto be the CEO of Sandwich Isles Communications {SIC), a new start-up
subsidiary ofWaimana Enterprises, a position which I assumed in 1997. SIC is licensed to provide
telecommunications services to the native Hawaiian beneficiaries of the Department of Hawaiian Home
lands {Oflfll}. l accepted that position because its mission resonated strongly with my desire to actively
contribute to "Improve the quality of life, public health and safety, education and economic growth for
native Hawaiians by providing tomorrow's broadband technologies today" (SIC's mission statement).
Being ofhalfHawaiian and halfJapanese ancestry, l personally experienced undue discrimination, both
as a Hawaiian and as a Japanese, while growing up during WWIJ which sensitized me in my early life
towards a career in service leadership that could bring about needed changes that would provide
minorities with the same opportunities as other Americans. After I graduated from the Naval Academy
and seeing the discriminatory policies still being practiced in the Navy when I entered the active fleet in
1959, I decided to remain in the Navy and focus a major part of my goal in the Navy to change this
discriminatory atmosphere, against women and racial minorities. I am proud to say that the Navyhas
made great strides in achieving this goal in my 35 years of service. The achievements of the 442nd,
during and after WWII, went a long way to achieve this needed change for the Japanese Americans and
they became my role model. -aut native Bawaiians are still struggling. like my past role as aTrustee of
the Kamehameha Schools, Ifelt compelled to take on this role at SIC because Iforesaw it as a cataly$1:
forgenerational changes for native Hawaiians.
I retired from SIC in 2013 to become a full time babysitter for my grand-daughter while my daughter
attended nursing school in Northern California. Having known and worked for AI Hee for nearly 20
years, I humbly request the Court's consideration for leniency in his sentencing for the reasons that
follow.
Prior to 1995, many of the existing beneficiaries ofthe Department of Hawaiian Home lands (DHHL) in
remote rura·l areas were without telephone services because the then service carrier, GTE"HawaiianTel;
required these beneficiaries to personally pay for the construction of telephone lines to their properties.
Many ofthe otherbeneficiaries were served with partylines {multiple telephones on the same phone
line). Additionally, DHHL had to pay for the cost and expense of constructing telephone lines by GTE

Hawaiian Tel in new residential subdivisions, thus limiting DHHL's goal of building new residential
subdivisions. When the Chairman ofthe IiHHL asked Al Hee ifthere was a way to improve the
telecommunications services on Hawaiian Home Lands without passing the significant additional costs
to the beneficiaries to rebuild their then out-dated telecommunications infrastructure, AI spent a
significant amount oftime, effort and.his own resources to research and meet with federal officials of
the Department of Agriculture Rural Utilities Service {RUS) and the Nation;;.! Exchange Carriers
Association (NECA) to start the process of having SIC designated a Rural Local Exchange Carrier (RLEC) to
qualify to receive subsidies from the Universal Service Fund {USF) to repay the construction loans that
would be used to build the new telecommunications infrastructure on HHL After AI was issued an
exclusive license by DHHL to build and operate a broadband telecommunications network on HHL, it
took him nearly three years ofdue diligence by the DHHL, PUC, RUS, and the FCC to have SIC designated
an RLEC, receive RUS construction loans, and receive USF funding. AI was driven by a strong
commitmentto fulfill the mission ofSIC as indicated earlier and despite difficulties associated with this
long and drawn-out process, he never gave up because he was determined to do all he could to help
reverse the trend of Native Hawaiians, who are currently over represented in nearly every negative
measure of well- being, including high unemployment rates, health problems, excessive school drop-out
rates, drug and alcohol abuse, spouse and child abuse, and high incarceration rates. He envisioned that
a state-of-the-art telecommunications system throughout the DHHL would be a critical tool to reduce
these statistics through the introduction new technology, such as distant learning, high capacity data
and video capability and telemedicine. Today, 100% ofSIC's network is completed on Molokai and
Kauai, 40% on Maul, 20% on Big Island and 10% on Oahu. An undersea cable linking these ftve islands Is
100% complete- and today, SIC is serving approximately 3500 customers, many in neighbor island rural
communities, with capabnities they neverhad before and at costs comparable to telecommunications
services in the Honolulu urban area. But as you can see, the work is not over and will continue to need·
Al's assistance, particularly on Oahu, ifthe company is to complete its mission.
Al's contributions to the community.
a. The $168 million construction loans he has obtained from the RUS, along with $23 million of
SIC's own funds, to build the high capacity telecommunications network on and between the
non-contiguous HHl properties throughout the state created numerous jobs for construction
and engineering companies. The $125 million private investment funds he secured to build the
undersea cable between the five major islands on which HHL properties are located, further
contributed to jobs.
b. DHHL beneficiaries have a state-of-the-art telecommunications/broadband network free of the
cost of construction, providing them with significant economic and public health/safety
opportunities.
c. By eliminating the cost of telecommunications infrastructure in its new subdivisions, the savings
allow more DHHL subdivisions to be built.
d. When the Oceanic interisland cable off the coast ofKihei, Maul was unexpectedly severed in
2010, AI was asked and allowed the cable company to use SIC's undersea cable for a fee for 52
days to provide emergency restoration services for 400,000 Oceanic customers until Oceanic's
undersea cable was repaired.

e. The DHHL community of 200 ranch lots in Puukapu on the Big Island had no land-line telephone
and internet service. GTE·HawaiianTel had to.ld the ranchers that it would cost about $30,®o·
per rancher to install poles and string telephone lines to their properties. AI Hee responded to
the ranchers and today the ranchers enjoy not only telephone services but high speed.internet
services as well.
f. The remote DHHL community of Kahikinui, located on the south side of Haleakala on Maul, is a
community of pioneering families occupying 5-acre hillside lots and committed to restoring the
life, beauty and productivity ofwhat was once a thriving community of2,000 native Hawaiians
before "post contact" abuses decimated both the population and the productivity ofthe land.
With no commercial electrical power, no cell phone service available, and only rough roads
resembling foot trails that took 30 minutes to traverse down from theirhomes to the main
highway, the community requested help from AI to install a telephone service that would not
only provide emergency calls but also to improve their quality of life. AI responded by installing
telephone and high speed internet service through an innovative network ofunderground
distribution to each lot with solar powered microwave shots back to SIC's major network.
g. AI has generously contributed to Native Hawaiian schools and organizations through the many
fimdraisers scheduled every year. He has also requested and aTiowed his employees to
volunteer to assist a Native Hawaiian Charter School in He'eia clean the new school sight during
working hours.
There is no question that AI Hee Is a true entrepreneur and a determined business person who is
committed to succeedin business. As such, he has experienced disagreements wlth hls competitors,
such as HEI and Hawaiian TelCom, as well as with the FCC. He has been perceived to be a difficult
person to deal with in business, but his personal qualities reveal a very caring and generous individual
who will give you his shirt right off his back.
a. Whenever any employee has medical or other serious problems, AI would get personally
involved to ensure that the individual was provided assistance to the maximum extentlegally
allowed. These are just two examples.
{1) He personally assisted a worker that had become addicted to ICE by finding a program to
help him remove his addiction. The worker was successful in curing his addiction for leE-
and AI found a place for him to live to get away from his friends who were on drugs.
{2) Another worker had serious medical problems but could not afford to be unemployed. AI
dii'ected the Ulrector ofHR that after allofher siCkleave and lawful benefits that allowed
her to remain a full time employee had expired, he set up a program that allowed her to be
a part time worker who can be hired to do essential work until she could recover fully to be
a full time worker again. Her recovery was slow but Al's compassion allowed her to
maintain an adequate quality of life.
b. While the pay of his employees are comparable to other companies of similar size, he has
provided all ofhis workers with one the most generous benefit packages.
c. For most of the years I for AI, he kept his salary at a low level as the company suffered
the groin pains ofa start-up company. As the owner and President, he was legally entitled to a
larger salary but never took it until recent years.

d. AI owns a home in Enchanted lakes that would be considered a moderately priced home by
Hawaii standards, in which he remains comfortable. He does not like to travel or attend large
events, unless there is a business necessity or contributes to the Native Hawaiian organizations.
I mention this because, from what Iobserved, he does not have a lavish life style.
Because of his past contributions and strong commitment to assist our native Hawaiian people, I humbly
ask your consideration for leniency.
Thank you for taking time to read my request and for your consideration.
Very respectfully,
Vice Admiral, US Navy (Retired}

ChiefJudge
300 Ala Moana Blvd.
Dear Judge Mollway:
September 20, 2015
My name is Harold Call Johnston, Jr. I have known Albert Hee since late 1997, when he and his
then CEO, Vice Admiral Robert Kihune (USN Ret.), began a recruitment effort to have me join
Sandwich Isles Communications (SIC). I joined SIC as its general manager in March 1998, and
except for a four-year period from 2001-2005 when I left to address personal matters, have worked
as an executive at SIC. I am currently the Director ofPlanning and Strategy. During my time with
SIC, I have strived to support Al's consistent vision and direction to improve the life of fellow
Native Hawaiians by providing them with the highest quality broadband services at very affordable
rates - services that many in the Hawaiian community would not have access to, were it not for
Al's commitment.
I know that AI is about to be sentenced under a federal tax conviction. Having had the opportunity
to work closely with Al for some 13 years, and gotten to know and observe his leadership style
and his consistency in both personal and business values, I have grown to have tremendous trust
in, and respect for this man. I can only comment with great personal sadness that whatever events
or mistakes he made that led to this conviction would be so out of character for the AI Hee that I
know. It is with this sentiment, that I respectfully submit this letter to you in support ofAI, whom
I continue to respect and trust completely.
I am part Hawaiian and live on Hawaiian Home Lands (HHL) in Papakolea, having enough blood
quantum to qualify as a successor to my mother, who was originally awarded the lot in 1947. I
live in Papakolea with Lana, my wife of 52 years and also a Native Hawaiian. Our 3 grown sons
live elsewhere with families oftheir own, but ours is a typical Hawaiian home, with both short and
long term lodging by cousins, siblings, nieces, and nephews who needed shelter and family
support. That situation is fairly common on HHL.
I graduated from Karneharneha Schools and was appointed to the U.S. Naval Academy in 1959,
by our then Territory of Hawaii Delegate to Congress, John Burns. Academy life was tough and
geared to instill in you the ability to perform well under stress, never give up and, above all, to
1

lead by example and with honor. At the Naval Academy, we were instilled with and operated
under an "Honor Concept". The Honor Concept placed the decision as to what was right and
wrong upon the individual- it basically said that you as an individual know if something you have
done or are about to is unethical or dishonorable, and you alone are responsible for your actions.
West Pointhas its "Code ofHonor"), which is similar but with more specifics as to what constitutes
an honor violation. These systems are more than "lip service" - they are part of our service
academy culture that an officer has to be trusted. During one period, SIC had 5 service academy
grads, including, AI, as the company's senior managers. AI told me once that the reason he hired
all of us service academy guys was that he could focus on the business strategy because he knew
that he could trust us to collectively run the company. That trust continues to be mutual.
Upon graduation from the Naval Academy, I was commissioned as a Second Lieutenant in the
U.S. Marine Corps. I spent 5 years in the Corps. In April1965, President Lyndon Johnson ordered
the Third Marine Division, primarily my battalion already afloat in the Caribbean on the USS
Boxer, a helicopter carrier, to intervene in the Dominican Republic civil war that broke out on
April 24. Violent clashes were taking place in the streets of the capitol, Santa Domingo,
threatening the lives ofAmerican and European civilians. We began evacuating American citizens
to our ship, and when our embassy came under attack on April 28, my company was the first to go
in. Other elements of our Third Division and the Army's 82"d Airborne Division joined my
battalion a few days later to protect foreign and local civilians, and to establish a line between the
warring factions to restore order. Government rule was restored by September. While 44 Marines
and Soldiers were killed during that short conflict, I reflect now in the 50th anniversary year of
that conflict with a strong conviction that our intervention was absolutely necessary, and I feel
good that we were able to help people - Americans, foreigners, and the local population -- when
they were in great need and there was no one else to help. Although the missions of this first
Marine combat experience 50 years ago and that of my experience in SIC are, of course, much
different, there is a lot of similarity in the feelings of pride, duty, and commitment in helping
people where nobody else was going to step up.
That sense of helping people was not with me during my last tour in the Corps, when I served as
a Marine infantry company commander. The guiding factors there were to carry out your assigned
objective, but prioritize taking care of your troops and keeping them alive. Sadly, I lost 10 fine
young Americans during my 6-month stint in the field, before being assigned to the Division staff.
A United States strategic vision was totally lacking. We simply went out every day with an
assigned objective to "search and destroy" or "make contact". I contrast this with my experience
at SIC, where the vision set by AI has always been clear, and I knew and felt good about my
mission.
Following my Marine Corps service, I spent 16 years with AT&T on the mainland, requiring
frequent moves for my family. I had key management experiences in running large engineering
and operations functions and ended my AT&T career with starting and leading a new sales and
2

marketing organization covering the western states, including Hawaii,. In 1984, I accepted a job
with GTE Hawaiian Tel to start a new marketing department, and we moved back home. We
finished rebuilding the family home in Papakolea, where we live today. I accepted community
leadership positons and just stepped down last year, due to term limits, from the board of the
Papakolea Community Development Corporation (PCDC), a 501c3 organization which manages
the community center and park, creates economic development activities, and supports community
center health care, youth, and kupuna programs.
I spent 10 years with GTE, including a 2-year stint at GTE's headquarters in Stamford Connecticut,
In 1991, I became GTE Hawaiian Tel's Vice President of International and Federal, overseeing a
multi-portfolio business that include a private telephone network for DOD serving 50,000 official
lines within the Hawaiian Islands, an international long distance business line, construction and
installation of overseas telecommunications networks for US military bases in Asia Pacific, and
Micronesia Tel, GTE's telephone company subsidiary serving the Commonwealth ofthe Northern
Mariana Islands. Interestingly, Micronesia Tel borrowed over $80 million from RUS during my
tenure, even though it was part of the multi-billion dollar GTE Corporation.
Living in Papakolea and serving on community boards has given me good insight into the needs
of the Hawaiian community. I am very aware of the high unemployment among our community
members, particularly among working age young men, and the low achievement scores of our
Hawaiian keiki in our schools. Health problems of native Hawaiians are also high on the priority
needs to be addressed. AI Hee's vision and the programs and resources he has assembled are all
about addressing these needs: economic development to improve the employment situation, tools
to enhance education, and improved access to health care programs.
From the day I first met him back in 1997, and still to this day, A1 Hee's vision and direction has
always been to provide services that will benefit Hawaiians who would otherwise be left behind
concerning access to those services. When I first joined SIC in March 1998, SIC had a staff of
less than 10 people and no telecommunications expertise except for myself. Contrary to slanted
press reports that AI Hee ruled his company with an iron fist and was involved in every decision,
my experience in SIC was the complete opposite. AI had spent several years prior to my arrival
in developing a master network plan which was approved by the Rural Utility Service
Administration (RUS), and under which funding would be released on a project by project basis
as they were sent to the RUS for approval. Al's guidelines to me were clear and specific: "follow
the RUS approved Plan, make sure you follow the procurement and regulatory rules and have
service at the highest quality level ready for the communities when required." We fully complied
with the government rules requiring approval of each project design by federal government
engineers and competitive procurement with sign off by the federal government engineers for all
projects. Alleft the details of the building and running of the company to his management team.
This goes back to the mutual trust issue that I cited earlier. As I look back today, I am amazed at
the network that SIC has built. We went on to put in infrastructure to serve an additional 20-plus
communities. SIC funded the infrastructure under the government programs that AI put together.
3

Recent slanted media reports have made big deal of the large amounts of money that AI brought
in, insinuating that this was AI Hee's personal piggy bank. Judge Mo!Iway, $166 million of that
funding was in the form of loans from the RUS, which SIC is charged with paying back with
interest. Every dime ofthose funds borrowed went to put in real equipment and infrastructure to
serve SIC's HHL service area, in accordance with project designs and competitive procurement
processes that were approved by RUS. I know firsthand, because either I, or my qualified SIC
colleagues during the time I was away from SIC, were in charge of the projects and the
procurement process. I was not involved in any of the reimbursements from the FCC Universal
Service Fund (USF) program, which SIC is eligible for as a Rural Telephone Company. I am
confident, however, that our Accounting folks and Regulatory consultants through their oversight
and annual audits, have insured that SIC has always been fully compliant with all applicable Code
ofFederal Regulations (CFR) associated with the use ofUSF. Beginning is 2003, SIC has received
$242.5 million to date in USF. These funds help to offset the capital costs and associated finance
charges of the RUS loans, and operational costs in providing service to SIC's HHL service area.
Yes, SIC has received over $400 million in government funding in the form of loans and USF
support, but that money has all been spent to build real infrastructure and provide much needed
service to HHL beneficiaries.
In addition to the government funding for the terrestrial infrastructure, AI put together private
financing to build the interisland marine fiber cabling system interconnecting the islands of
Hawaii, Maui, Molokai, Oahu, and Kauai. This latest technology, high quality system,
interconnected with SIC's terrestrial network funded by government programs, will insure that
native Hawaiians have access to the increasing broadband support they will require for economic
development, health care, and education for many generations in the future. While the network
built under AI Hee's vision was intended for service to native Hawaiians, continuing technology
advances in fiber-system electronics allow more and more bandwidth to be carried over the
terrestrial and interisland fiber cable infrastructure. AI's vision to serve native Hawaiian has
resulted inhis enabling a resource that will benefit the whole state. That was proven in 2011, when
the interisland cabling system used by Oceanic Cable for TV broadcast on the neighbor islands
was cut, and AI made a portion of the Paniolo Cabling System immediately available to Oceanic
to support its requirements until repairs could be made to its own cabling system. In a talk to Native
Hawaiian business leaders at the Council of Native Hawaiian Associations (CNHA) in August
2014, AI suggested that it may be decades before people realize the benefit to all of Hawaii from
the infrastructure that he has provided.
There are many examples of the benefits that Al's vision and companies have provided to
Hawaiian Home Lands. First, is the cost savings to DHHL. Prior to SIC, DHHL, or in some cases
- the beneficiaries themselves -- had to pay the dominant telephone company to bring in the
necessary infrastructure to serve an HHL community. Under the government programs, SIC
invested over $50 million in underground distribution to serve the new communities that were
developed with support of the $600 million settlement DHHL received from the State. SIC's
financial contribution represents real savings of dollars that would have to otherwise come from
4

DHHL or the beneficiaries. While all communities served by SIC have received benefits ofhigh
broadband Internet access and lower prices, there are 3 examples in particular that I will site as
underscoring the importance ofAl's vision to make sure that native Hawaiians are not left behind.
These are 3 projects in which I was personally involved:
Pu'ukapu is an HHL community of 200 agriculture and pastoral lots of 5-200 acres,
adjacent to the town of Waimea on the Big Island. I found out from one of my
Kamehameha Schools classmates at a reunion in 1999, that this community had no
telephone service, and that Hawaiian Telcom had quoted the beneficiaries a price of
$30,000 per lot to bring in telephone service. They went without telephone service and
relied upon sporadic cell phone coverage for communications. With RUS approval and
financing, and Al's approval, I negotiated the purchase of an Alcatel-Lucent switching
center, housed in a modular building, from Tel Hawaii, an Alaska rural telephone company
that had activated its switching center at Na'alehu, near South Point. Tel Hawaii had made
a large investment in equipment and infrastructure to provide service to the underserved
residents of Ocean Estates and the general south Hawaii area. After several years of
frustrating legal battles with Hawaiian Telcom, which fought Tel Hawaii's operating
license approval from the Hawaii PUC, Tel Hawaii assessed that they would not be able to
overcome the obstacles in Hawaii's business and political climate. Tel Hawaii, already
having spent millions of dollars to serve the south Hawaii area, decided to cut its losses
and pull out of Hawaii. We purchased the self-contained modular switching center and
other assets from Tel Hawaii at a fraction of the cost of a new central office building and
equipment, relocated it to Pu'ukapu, put in the necessary infrastructure, including
underground conduit to house cabling and a very long power "extension" cord of several
miles to remote equipment (Pu'ukapu has no commercial power), interconnected the
system to our network, and placed the office into service. Within a year after learning that
Pu'ukapu was unserved, with the programs accessed under Al's vision, we brought service
to this rural Hawaii/America community at no capital outlay to DHHL or to the residents.
Today these residents still have no commercial power, but their lives have been improved
significantly by access to high quality telephone and internet service.
This achievement underscores the significance of Al's vision to insure that Hawaiians are
not left behind, the importance ofthe government programs that SIC has access to, and that
AI and SIC were doing exactly what Congress had intended in establishing the RUS
financing and USF support programs - that rural America must not be disadvantaged in
access to modem utility services. It also shows how Al's knowhow and tenacity were able
to successfully overcome some ofthe regulatory and political obstacles that, sadly, caused
a very qualified and experienced Alaska telephone company to abandon its interest and
investment in Hawaii.
5

Kahikinui. In early 1999, SIC management met with leaders of the remote HHL
community of Kahikinui, located on the south side of Haleakala on the island of Maui.
Kahikinui is a community of pioneering families occupying 5-acre hillside lots and
committed to restoring the life, beauty and productivity of what had once been a thriving
community of some 2,000 native Hawaiians before "post contact" abuses decimated both
the population and the productivity of the land. With no commercial power available,
rough roads resembling wide foot trails that took 30 minutes to traverse down from their
homes to the main highway, and no cell phone service available, these leaders were
concerned about the basic safety issues for their families, like how do they get help if there
is an emergency. SIC developed a unique solution, consisting of microwave radio links
from one of its Maui central offices, solar power for its equipment hub within the
community, and underground distribution infrastructure to each lot. Service was
inaugurated in early 2000, and today Kahikinui residents have access to not only telephone
service but also high speed Internet.
Molokai. The company's Molokai-service story continues to evolve, and is perhaps the
broadest representation of the service benefits that AI Hee's companies have been able to
deliver to a previously underserved population. While the state's dominant telephone
company focused its resources on the more profitable and easier-to-serve larger cities and
towns, service on rural Molokai was lacking. Internet service was generally not available
or very slow. SIC used its access to RUS and FCC funding support programs to deliver
high quality broadband services to the Kalamaula and Ho'olehua communities within its
designated HHL service area beginning in 2000. As word spread among the closely knit
Molokai population that SIC customers had access to high quality broadband services, SIC
began to receive requests for its services from residents within Hawaiian Telcom's service
area, including those residing on HHL lands who were existing (pre-SIC) customers of
Hawaiian Telcom and only hand antiquated dial-up Internet access via the analog telephone
line ifthey wanted service.
In 2007, SIC's then CEO, Admiral Kihune, met with Hawaiian Telcom's then CEO, Mike
Ruley, to address the need to improve service for the HHL residents within Hawaiian
Telcom's service area. Mr. Ruley responded with words to the effect that "tell them to
stand in line with the others at the PUC". Consistent with his vision to insure that native
Hawaiians have access to needed broadband services and recognizing that the incumbent
was not going to deliver that capability to its constituents in HHL Molokai communities,
AI Hee authorized SIC's affiliate, ClearCom Inc., a Competitive Local Exchange Carrier
(CLEC) which was not restricted to SIC's service area, to provide broadband services to
the HHL beneficiaries on Molokai that were outside of SIC's service area. ClearCom
continues to provide that service today. Of all of the communities that SIC serves
statewide, Molokai has the highest penetration percentage of SIC's Internet service users
-underscoring the demand and need for broadband service in rural communities.
6

From a professional viewpoint, AI is probably one of the greatest visionaries I have ever known.
Internally in the company, we senior managers often comment how this guy always seems to be a
couple of steps ahead of us and has thought through, long before us, the critical tasks or obstacles
we need to address to achieve a major milestone of his vision. I related my Marine Corps
experience earlier with emotional reflection to convey that I have experienced working in tough
environments and the differences when the mission was good and not so good. I have also seen
my share of leaders, extending beyond the Corps to my civilian career --- good leaders and not so
good ones. AI Hee has been a very good leader, instilling within his company a commitment to
the mission to serve Native Hawaiians and a sense ofboth accountability and mutual trust. At the
Naval Academy, we were indoctrinated with a tenant that a ship embodies the traits of its captain.
That is certainly true at SIC. We are a Hawaiian company with Hawaiian values. I see the
commitment to AI's vision to provide benefit to native Hawaiians even in our employees who do
not have Hawaiian blood.
AI has created a work environment where there is probably as much a sense that we are family as
we are a business. It is interesting but not surprising to me that among our employees, AI's
conviction has not resulted in negative gossips "around the water cooler" about him; nor has there
been a bailing out ofthe company by employees. Al's convictionhas led to more a sense of "auwe
- we are saddened that one of our family whom we care for so much is in trouble, and we will
stick together as a family in mutual support, and dedicate ourselves to our mission to serve native
Hawaiians". During the past year of stress for him in preparing for and going through the trial, his
now 1-year old granddaughter, Roselani, has been continually at his side or on his lap. It is
probably unique in the business world to have the senior executive of the company hold business
meetings with a smiling baby on his lap. I think it is wonderful, and represents how important his
family is to him. He also has a new grandson, Kea'u born in July. Al's family, like mine, is very
close. I know that this whole ordeal has been very hard on them, but they are strong and will stand
together in support of each other and their dad.
Judge Mollway, I offer no excuse for any mistakes AI Hee made that led to his conviction. AI is
a good man, however, whose vision, commitment and perseverance have helped to improve the
lives of many others. I know that he is committed to using his exceptional ability to continuing to
improve the lives of other for the rest of his life. As you evaluate the appropriate sentence for the
tax crime of which he has been convicted, I simply and respectfully ask that you judge AI Hee not
solely on the basis ofhis mistakes brought before your court, but on the totality ofthe goodness of
the man as I have tried to convey in this letter.
With sincerity and great respect,
7

September 15, 2015
Chief Judge
300 Ala Moana Blvd.
Aloha Judge Mollway:
My name is Naomi Kahumoku Miyashiro and I am the Director of Human Resources for Sandwich Isles
Communications, Inc. (SIC). I have served in this capacity since March 2011 and prior to this position, was the
Manager of Human Resources and Administration at the Keck Observatory on Hawai'i island from 2005 to 2011.
In late 2010, I decided to move back from Waimea to Oahu to be closer to family as was looking for a human
resources position in Honolulu. I had already been offered a job with my former employer when I received a
phone call in January of 2011 informing me of a human resources position with SIC. Admiral Kihune and my
former CEO agreed to provide me with an opportunity to choose between both companies and after many hours
of consideration, I chose not return to my former company, but to come and work for SIC.
After initially meeting with several SIC staff, including Admiral Kihune, I received a phone call from Albert Hee that
he wanted to meet me as well. This was the first time I met Albert in January of 2011. We met at Zippy's
Kaneohe along with Janeen Olds. While eating saimin, Albert explained why he went into the telecommunications
business and how vital the SIC network was to the growth and wellbeing of our people. Living in Waimea for over
six years, 1was already very familiar with the Department of Hawaiian Homestead Land (DHHL) community and a
colleague at the Keck Observatory lived on DHHL serviced by SIC. As he explained the challenges and
opportunities of growing SIC, I was able to correlate the sentiments of my former colleague as she always spoke
about the positive impacts of broadband and telephone service and what it meant for her family to be 'connected
to the world'. They live on a six acre parcel several miles outside of Waimea on the slopes of Mauna Kea where
no land line service was available prior to SIC.
For me, accepting the position to join SIC was not just a professional opportunity, but an opportunity to give back
to my people! I believe that what SIC does and will do in the future has a direct impact, not just for native
Hawaiians but for the State of Hawai'i as well. Without someone like Albert's vision and fortitude, the SIC
telecommunications network would not have happened in our lifetime! I always believe that many would say
that if Albert were haole, he would be called a successful entrepreneur, but because he is part-Hawaiian, people
misunderstand his business savvy and wit.
As a certified Human Resources professional, I could not in good conscious pen a letter to you, without my 100%
support of Albert Hee. If there is anything unethical, fraudulent or criminal about Albert, I could not in good
conscious continue to work for SIC. This is why I intend to continue serving as the company's Director of Human
Resources. In addition, Albert's HR philosophy is to provide local jobs that will help grow and develop staff, even
if it means that they take on bigger professional opportunities in another Hawai'i company. He is a generous,
compassionate and kind employer. We have had several employees on extended leaves of absence for personal
and family medical situations. Albert believes in providing benefit coverage long past FMLA requirements and

several of our company benefits provide spousal coverage so that our employees do not worry about loss of
coverage if their eligible family member is affected. Albert truly wants what's best for each employee and their
family.
I plead and humbly ask for a lesser sentence. Albert has done a tremendous amount for our company and for
others in the community. Please consider community service and probation in lieu of sending him to prison.
There is much work to be done and he could continue to best serve Hawai'i out of prison, then in prison.
Sincerely,
Naomi Kahumoku Miyashiro, SHRM-SCP, SPHR
Sandwich Isles Communications, Inc.
Director, Human Resources

Chief Judge
300 Ala Moana Blvd.
Dear Judge Mollway,
September 15, 2015
Thank you for the opportunity to be able to submit this letter. I understand that Mr. Albert Hee is being
sentenced for a tax crime and I am writing in support of Mr. Hee.
My name is Ka'i'inioku'upu'uwai Patelesio and I am an employee of Sandwich Isles Communications, Inc.
(SIC). Prior to working for SIC, I worked for Waimana Enterprises, Inc. from April 2006 to November
2007 and then again from May 2009 to December 2011 and transferred to SIC in January of 2012.
Outside of my employment with the Waimana Family of companies, I have always known Albert Hee as
Uncle AI. My father, in his youth, was cared for by the Hee 'ohana (Uncle Al's parents specifically) and so
I was raised to know him as my Uncle. I have the utmost respect and aloha for him and love him very
much. He has provided tremendous opportunities for both me and my family and for this I will be
forever indebted to him.
I apologize in advance for the length and format of this letter but I feel that the details I am including in
this letter are crucial to understanding the lens from which I view Uncle AI. For the past 11 years Uncle
AI has been a constant and steady presence in my life- not only as a mentor but also as a leader,
employer and benefactor. I'd just like to provide examples of how this man's generosity and his
foresight has personally touched my life.
My life forever changed when I walked into his office in 2004 asking for his help in getting a job. My
employment history is an interesting one that involved a lot of movement for a few years but each
experience was one that I learned a great deal from. When I asked to meet with Uncle AI, little did I
know that it would start me on this path that I continue to grow from. I had just graduated from UH
Manoa as a double major in Hawaiian Studies and Psychology, and was eager to get into the workforce
to 1) Use my newly acquired Hawaiian Studies degree and 2) Work within the Hawaiian Community that
I hold so close to my heart. At that time I didn't know much about Waimana or SIC but I knew that his
companies provided telephone and other telecommunications services to residents on Hawaiian Home
Lands. Those kinds of services were important to me because I believed that that kind ofaccess to·
technology fulfilled a crucial need in the rural Hawaiian communities. You see, during college I had
worked for several years at the Office of Hawaiian Affairs. I was a Trustee Aide and was able to travel to
many Hawaiian communities throughout our state when Board of Trustees' meetings were held off-
island. I saw firsthand when I went into those Hawaiian communities how different the lives of
Hawaiians were outside of urban Honolulu. There were some communities still out there that were in
need of the basic necessities that we in urban Honolulu take for granted like access to sewer and water,
electricity, and yes even telephone services. I could not believe that in the 21st century people still lived
without those services- it was unbelievable and very sad to see how difficult everyday life could be
without those modern conveniences.
So in 2004 when I asked Uncle AI for help in getting a job, my hope was that maybe I would be able to
use my skills and knowledge for one of his companies because I believed that his company's mission to
provide affordable telecom services to lessees of Hawaiian Home Lands was good and it was noble. I

was of the mindset that anything, whether it be a product or a service, that will help and benefit the
Hawaiian lahui and communities would always be a good thing. However, at that time Uncle AI felt
there was a better fit for me elsewhere and so upon his recommendation, I went to work for a
consulting company (Hoakea dba Ku'iwalu) that did consulting and cultural resource management and
SIC was one of their clients. I was very happy to be newly out of college and to have a job that I
ultimately very much enjoyed. It still allowed me to be connected to the Hawaiian communities and I
felt that what I was doing in my capacity as an employee for Ku'iwalu was contributing to the greater
good of the Hawaiian community.
I worked for Ku'iwalu for almost 2 years and then an opportunity arose for me to work for Waimana
Enterprises, Inc. There was no hesitation to move over because of the financial benefits that I saw
working for Waimana. Waimana was an established company and I was offered an Administrative
support position with a higher salary and the benefits package was very robust making for an overall
attractive package. So I moved over and luckily the transition was very easy because Waimana rented
out office space to Ku'iwalu on the same floor; so I continued to work with the same people that I saw
every day. I worked for Waimana for about a year and a half and surprisingly I was offered a position to
return to Ku'iwalu. I accepted because I wanted to gain more experience in cultural resource
management and to again engage directly in the Hawaiian community. It's really what I loved to do.
Then in 2008 life as I knew it changed dramatically. In August of that year my mother passed away and
three weeks later I gave birth to a baby boy who was 4 months premature. He was a tiny lib 7 oz and
was very, very sick and had many challenges. Each and every day was a battle for his life. The stress of
my mom's death and the very early arrival of my son took its toll on me, my husband and my whole
family. But through that entire ordeal Uncle Al's support was unconditional and unfailing. He was
familiar with the emotional distress that caring for a preemie involved because he had gone through
something very similar . For a man to be in such a position as his, to be at his executive
level, and still be able to make himself available to me (and anyone else who needed him for that
matter) was appreciated and very comforting. At times he even came to visit me and my baby in the
hospital. I will never forget that. My life was in turmoil for many months and I can honestly say that
through that entire season he was THE ONE constant in my life. He was like a rock that grounded me
when I often felt confused, lost and just emotionally drained. He would always give me the best advice
and it helped me navigate through a very difficult period. I will always, always be thankful for and to
him.
My employment with Ku'iwalu eventually ended because I needed to focus on getting my baby healthy
and he needed a lot of therapy and care. But when I was ready to return to the workforce, an
opportunity to return to Waimana again in an Administrative support role opened up. This was in May
of 2009. At that point in my life my priorities changed and my only concern, now as a mother, was being
able to provide as best as I could for my family. Waimana's benefits package would allow me to do that.
I always remembered Uncle AI saying that he chose to stay and live in Hawai'i because we have a unique
culture and community here. We are not like the mainland. And when he first went into business he
envisioned a company that provided enough benefits to its employees that would allow them to be able
to work and live in Hawai'i and still be able to raise their families here. With the cost of living in Hawai'i
so high, and now that I had become a mother, I finally understood what he meant. I am appreciative of
the employment opportunities that ITe.afforded me. Uncle Al's generosity and willingness to employ
family (hanai as it is) didn't only stop with me, his companies also provided opportunities for other
members of my immediate family to work here. Both my father and sister-in-law (brother's wife) work
for SIC in different capacities and have been doing so for many years.

My growth as an employee and the opportunities to gain new skills did not stop when I moved over to
Waimana. I always felt so fortunate to be able to work for Waimana and its family of companies and I
knew this is where I wanted to stay for a long time- possibly even for the rest of my career. And
although I loved my job as an Administrative Assistant, I wanted to contribute more to the company's
operations and at the same time grow professionally. In 2011 another opportunity surfaced that
allowed me to move into the Human Resources Department. I never envisioned that I would be in
Human Resources but this is where the path Jed me.
After a "trial period" and deciding that the HR field is what I wanted to pursue, I moved towards
obtaining my certification as an HR professional. The company in combination with the State of Hawaii's
Employee Training Fund covered the costs of classes and materials to prepare for the certification exam.
The classes were held once a week for a few months and in between we had study groups that met once
or twice weekly. Uncle AI allowed me to utilize a board room after office hours as a place for my study
group to meet. This private space helped to provide a comfortable and safe environment in which my
group was able to really focus. He allowed me/us to use the projection screen, hook our laptops into
the internet and even have teleconferences with study group members that wouldn't be able to make it.
All of those tools would otherwise be unavailable to us if we had to meet in a public space like a park or
a coffee shop. In 2013 I obtained the highly coveted PHR certification from the Human Resources
Certification Institute (HRCJ). It is a very difficult 3 hour sitting
had such a
huge impact on my life. Uncle Al's philosophy in regards to his employees is to malama them. His
philosophy created a culture within our company that genuinely cares for the employees, especially
those with health issues. I use myself as an example. Last year I became pregnant. And with the early
arrival of my first son in 2008
At 24 weeks, I was put on modified bed rest which forced me to be
out of work from that point on. Under normal circumstances the financial burden of not being kept
"whole" due to an extended absence would create a highly stressful situation possibly adding problems
to an already fragile pregnancy. But as I mentioned earlier, we, as employees of SIC, are fortunate to
have a robust benefits package. The company continued my health and dental insurance benefits
during my maternity leave; and was able to do so because of a PTO donation program which allows
employees to receive donations from other employees and is completely driven by the generosity of the
employees. The donated PTO hours covered the cost of my employee share of the insurance premiums.
In addition to the PTO donation program, SIC offers company sponsored Temporary Disability Insurance
and employee paid supplemental insurance that gives the employees the option to take additional
insurance to be claimed during situations such as mine. I was out on maternity leave for 6 months (3
months before delivering and 3 months after delivery) and was STILL kept whole financially. These kinds
of benefits were a God send. Not only did the benefits relieve the financial burden that would ordinarily
come with an extended absence but it gave me peace of mind. The relief that these programs through
the company offered could not be measured! I already was dealing with a difficult pregnancy and I was

able to continue to provide financially for my family without sacrificing much in our day to day and not
have to worry about any additional burdens. I was able to focus on my pregnancy and the health of my
baby. With the company's support I was able to deliver a healthy baby who had no challenges or
complications. I can't express how much of a blessing that was to my entire family!
Another company benefit that assists so many of us as employees is SIC's generous 401k plan. And again
1can attest to this personally. I have been contributing to the 401k plan and using it as a savings tool
with the intention of purchasing a home. Last year, my father transferred to me his Hawaiian Homes
Undivided Interest Lease_in East Kapolei JIB. Although I'm a current lessee my subdivision, Kauluokaha'i,
is still being built out. The projected timeline for completion of the project is August 2016. The 401k
plan that the company offers matches my deferrals and when I receive notice that the lots are ready for
home construction, I will be able to take a withdrawal from my 401k and apply it towards the purchase
of my first home. That in itself is a miracle- the idea of homeownership for me always seemed like a
distant dream because of the high cost of housing in Hawai'i. But because of the resources available to
me, especially through the company's generous benefits, I am close to that dream becoming a reality.
Again I credit Uncle AI and the company's generosity with this dream coming true.
Also, as a future homeowner in a DHHL subdivision I look forward to the services that SIC will be able to
provide. SIC has already put in the infrastructure to be able to provide telephone and internet services
and my understanding is that our services are comparable and maybe even better than that of the
services that I'm so used to, coming from urban Honolulu. Moving out to Kapolei (considered a rural
area) will already be a big change; but the comfort of knowing that I will not have to settle for less
services just because we live in a "rural" area will make the transition smooth and easy for my family.
My husband and I can focus on starting our life in a new home and continue to raise our sons.
I believe that without the services that SIC provides to the Department of Hawaiian Home Lands'
lessees, the modern day conveniences of today's technological world would be unavailable or
alternatively be made available at very expensive costs. Our services and contributions to DHHL's
Hawaiian communities is vital and important to the lives of the lessees. I believe that improving the
lives of the Hawaiian lahui ultimately improves the lives of all of Hawai'i's people.
I support Uncle Al's mission and vision for his companies because I believe them to be honorable and
noble. And I personally know him to be a man of his word- a man who is honorable and noble. The
unknown impacts of sending him to jail will be detrimental and harmful to many people and it will likely
be far-reaching. I think of all the sacrifices he's made to see that this company grows and those
sacrifices have come at a cost to his family. My heart goes out to his family and I worry about the future
of my own family, the future of our employees and our employees' families. So much of what he's built
hangs on his leadership and his vision. He has been an integral and very involved part of the everyday
operations of this company.
In closing, I beg for leniency in sentencing. I would humbly request that his sentence be minimal and if
Your Honor sees fit, a sentence of probation. I thank the Court for considering my statement as you
deliberate the fate of this beloved man.

September 30, 2015
Chief Judge
U.S. District Court
300 Ala Moana Blvd.
Honolulu, HI 96850-0338
Dear Judge Mollway:
My name is Dona L. Hanaike and I have a small business that provides insurance consulting
services in Honolulu. Previously, I served in the executive branch of the State of Hawaii
government, one of my positions being the Deputy Director of the Department of Land and
Natural Resources ("DLNR"). I am writing this letter of support for Albert Hee who is currently
being sentenced for a tax crime. I have known Albert as a friend since intermediate school at
the Kamehameha Schools but also on a professional level with his company for the past 1S
years.
I have observed Albert Hee develop business ventures over the years, and while financial
success is important, it is not his only motivation. Albert Hee believes in giving back to his
community by providing opportunities for local people to stay in Hawaii. It was with great
interest and pride I saw him create a rural telephone company which would service the
homesteaders on Hawaiian homeland properties. In the beginning, it was very difficult as he
had to go through many federal and state regulatory approvals to obtain the necessary federal
financing for this project. No one had done this before in the State of Hawaii. However, he has
been able to finance and construct a telecommunication's network at a cost of over $300
million. In my previous job with DLNR, I negotiated the return of certain public lands to the
Department of Hawaiian Homelands ("DHHL") and understood the magnitude of the problems
DHHL faced in building decent homes for its homesteaders. The creation of Sandwich Isle
Communications ("SIC') relieved DHHL of the financial burden of constructing the
telecommunication's infrastructure for its beneficiaries when Hawaiian Telephone was unable
to do so.
I also provide group life and health insurance services for SIC and have seen how well Albert
Hee provides for his employees. As the company grew, Albert Hee increased the life and health
benefits for his employees. He set up a 401(k) plan with employer matched contributions, and
across- the-board bonus incentives for his employees. Albert once told me about his first job in
Hawaii after he completed his tour of duty with the U.S. Navy. It was with a Big-Five company
and it included negotiating compensation contracts with the union. He saw how little care the
executive management had for the rank and file employees. It influenced the way he would

r
I
look at the management of a company. He is fair with his employees, almost to a fault. He
looks for local talent and has recruited them from the mainland. I have seen employees leave
SIC for better jobs or to form their own business ventures, all with his support and
encouragement. He even keeps in touch with them after they leave. He believes in local
people and will assist them whenever he can.
I humbly ask for your consideration of leniency for Albert Hee. He has devoted his adult life to
better the lives of others. He is a talented individual who found a way to improve our
community by bringing in needed utility services and financial funding to Hawaii. Building a
telecommunication's infrastructure and a successful business is not a skill set that many of us
have. I have known Albert Hee for quite some time and he is a pretty forthright and honest
person. He does have a strong personality and has never shied away from a fight when he
believes in something or someone. You probably need that skill set if you are developing
projects of the size and magnitude like SIC. However, this same tenacity can also be viewed as
a weakness which is why when you ask people about Albert Hee, people either like him or hate
him. Not sure there is any "in-between".
Please also take into consideration that Albert Hee never concealed or hid his expenses to his
accountants or the IRS. He thought that the IRS would tell him if there were problems with his
deductions and then he would correct them. Albert Hee works with federal auditors all the
time because SIC gets audited annually (as part of receiving USF federal funds). I think he truly
thought that he was being straightforward and open with the IRS and that if there were any
compliance problems, they would bring it to his attention and he would correct them. This is
the way the FCC/USF federal audits of SIC are required to be handled. Ironically, the extended
audit (which started in 2006 with the audit of SIC) and criminal investigation of his companies
(which ended with indictments filed in 2014) allowed the expense deductions at issue, to
compound annually instead of being immediately addressed. This created a significant tax
exposure that became the basis for the criminal indictment. It just doesn't seem right to
incarcerate a contributing member of our society because you don't agree with the itemization
of his business expenses. There must be a better way to address this problem.
Thank you for considering my letter as you deliberate on Albert Hee's fate.
Dona L. Hanaike, J.D.

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