GOVERNMENT EMPLOYEES (UPW)
Hawaiian Boss, Daughter, Accused of Embezzlement
A federal grand jury returned a 43-count indictment Mar. 7 against
Gary W. Rodrigues and Robin H. Sabatini alleging fraud, embezzlement, and
money laundering in connection with two United Public Workers' funds. The
indictment charges that Rodrigues, Hawaii state director of the UPW and
Sabatini, his daughter, devised a scheme to defraud UPW and its members
of money paid out of UPW accounts for dental benefits and another scheme
to defraud a UPW health benefit program. Further, it alleges that Rodrigues
embezzled UPW funds by causing UPW to pay premiums not required to be paid
for dental benefits. Finally, it accuses Rodrigues and Sabatini of laundering
proceeds from the health benefit program fraud and embezzlement.
The amounts were not disclosed.
U.S. Atty. Steven S. Alm said that according to the indictment, the schemes sought to defraud UPW. Rodrigues allegedly failed to disclose that UPW premiums for dental benefits were in excess of those required and were inflated to include consulting fee negotiated by him, which he directed first to pay off a personal loan and then to a firm incorporated by Sabatini. Rodrigues also allegedly failed to disclose to the UPW bd. and membership that he negotiated a consulting fee to be paid to Sabatini's firm in connection with a UPW contract for medical benefits. [USAO D. Haw., Media Release 3/7/01]
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