Miske to forfeit more than $20 million in assets

HONOLULU — Michael J. Miske Jr., found guilty of racketeering conspiracy, murder, and 11 other felony charges, must forfeit assets totaling more than $20 million, the jury that convicted him determined Wednesday.

Miske was convicted in U.S. District Court before Chief U.S. Judge Derrick Watson last Thursday, and the forfeitures were determined by jurors in the second phase of the trial. Miske is scheduled to be sentenced Nov. 26.

While the total value is undetermined, Assistant U.S. Attorney Ken Sorenson said the value of all the assets might be around $20 to $28 million, which he said is the biggest individual forfeiture case in Hawai‘i.

“If it was indeed north of $25 million, it would indeed be one of the biggest forfeitures ever,” he said.

While most of Miske’s properties have been seized and are under the federal government’s control, he had not yet lost his rights to the assets through the forfeiture process. The forfeiture of assets is a separate legal procedure that follows the seizure, resulting in the permanent transfer of ownership from the individual to the government.

Miske’s assets include properties in east Honolulu, boats, exotic cars, artwork such as paintings and sculptures, and money in the bank.

On the 103rd day of his trial, Miske, 50, was found guilty on 13 of 16 charges, including racketeering conspiracy and murder.

Federal prosecutors maintained that Miske orchestrated the 2016 killing of 21-year-old Johnathan Fraser, who was the best friend of Miske’s only son, Caleb.

Prosecutors argued during the trial that Miske conspired with others to kidnap and murder Fraser, believing Fraser was responsible for Caleb’s death in an automobile crash.

In March 2016, Miske instructed a co-conspirator to develop a plan for kidnapping and murdering Fraser for a named price. Around July 30, 2016, Fraser was kidnapped and killed.

Miske denied the allegations, but last Thursday, jurors convicted him of Fraser’s murder, finding him guilty of kidnapping and murder-for-hire.

Jurors convicted Miske after hearing evidence from federal prosecutors that Miske and other co-defendants ran the “Miske Enterprise,” whose activities included murder, kidnapping and robbery. Prosecutors said for about two decades until June 2020, Miske and his co-defendants operated a racketeering enterprise — the “Miske Enterprise,” whose activities included murder, kidnapping and robbery.

According to a statement released by the U.S. Attorney’s Office Wednesday, the activities also included acts relating to murder-for-hire, interference with commerce through robbery and extortion, wire fraud, fraud in connection with identification documents, financial institution fraud, the Currency and Foreign Transactions Reporting Act and obstruction of justice.

In addition, prosecutors say that around March 2017 Miske and others conspired to release a chemical weapon — the fumigant and insecticide chloropicrin — into two Honolulu nightclubs as part of a conspiracy. Miske was also convicted of obstructing justice for submitting false character letters to the court in support of his request for pretrial release while this case was pending.

The jury’s verdict last Thursday cleared Miske of three charges: a count of conspiracy to commit murder for hire resulting in death, one count of conspiracy to distribute cocaine and one count of bank fraud.

On Monday, outside the jury’s presence, Miske’s team objected to the government’s Exhibit 99 for the forfeiture trial. Miske was granted the opportunity to review the exhibits and reserved cross-examination for Tuesday.

Miske’s team also objected to the admission of hearsay during the forfeiture phase, arguing that the government has not provided legal precedents supporting the use of second-hand information. The court has reserved its ruling on this matter.

Miske’s team requested that the court exclude claims linking licensing issues to wire fraud as a basis for forfeiture. The federal court then denied their request to dismiss the government’s claim of ‘responsible managing employee fraud’ as legally inadequate for forfeiture.

The jury found that 28 of Miske’s properties, previously owned by him or associated with his businesses — including Kamaaina Termite and Pest Control — could potentially be subject to forfeiture, as they might have been used to facilitate his crimes or purchased with proceeds from his criminal activity.

Allegations including using fishing boats to move drugs and money were among the charges against Miske.

Deliberations in the asset forfeiture phase of the trial began Monday afternoon and jurors on Wednesday unanimously decided to remove Miske’s rights to his 28 assets, which will go into the government’s Assets Forfeiture Fund — which can be shared among law enforcement agencies and used to cover costs related to the forfeiture process or other investigative expenses.

“Today, there was a forfeiture proceeding which I challenged under the theory that in the Third Circuit, jurors are instructed to make decisions beyond a reasonable doubt, since this is a criminal proceeding,” said Michael Kennedy, Miske’s defense attorney, after the decision. “We will address this issue and the other convictions for Mr. Miske on appeal once there is a judgment on the sentence.”

Kennedy also reiterated that Miske was found not guilty or acquitted of several charges.

“I’ve been trying cases for a long, long time, I have different opinions on the other counts,” he said. “We will go forward with fighting for Mike.”

The jury unanimously found that Miske’s interest in 20 of 28 properties was acquired or maintained through racketeering activity.

The jury also unanimously determined that nine of properties represent an interest in, claim against, or property right that provided Miske with influence over any enterprise he established, operated, controlled or participated in.

The jury found that only one of the 28 properties was not derived from, nor does it constitute, any proceeds obtained directly or indirectly from racketeering activity.

“The jury really pored over it; they spent the time to go through each asset and make determinations,” Sorenson said. “I truly credit them.”

All assets, including boats and cars, will be sold. If a third party claims ownership of the forfeited assets, they may assert their interest through a separate ancillary forfeiture process that will take place after the Nov. 26 sentencing. Any disputes over such claims by the government are resolved through a civil trial.

Sorenson said for now, the process of forfeiture would move on and the department will continue to try to liquidate Miske’s assets.

“In the event that there was a reversal of the conviction, for instance, then obviously it gets a little more complicated with valuation of assets. But that gets worked out down the line in the event of a reversal. It’s not something we anticipate, obviously.”

According to Sorenson, victims may request the forfeited funds as restitution in some cases.

“We look forward to moving forward in the sentencing phase to see what he’s going to be sentenced to,” Sorenson said. “He’s looking at mandatory life. We do expect that sentence.”

For three of Miske’s 13 charges — racketeering conspiracy, murder in aid of racketeering and kidnapping resulting in death — he faces a maximum prison term of mandatory minimum life, serving life in prison with no possibility of parole.

The federal trial lasted nearly seven months, during which prosecutors called over 240 witnesses. Miske’s 12 former co-defendants, who all entered guilty pleas before the trial, are scheduled to be sentenced soon.

Miske is currently held at the Federal Detention Center Honolulu. Sorenson said he expects Miske to be transferred and serve time in a federal prison.

“We share, and everybody in the community, a sense of relief that this scourge on our community has been brought to justice, ” he said.

Miske’s 28 properties and assets are:

>> The real property located at 6 Lumahai Street, Portlock, Honolulu, Hawai‘i, and any rental income derived therefrom.

>> The real property located at 614 Paokano Loop, Kailua, Hawai‘i.

>> $611,123.60 constituting proceeds of the sale of the real property located at 559 Kumukahi Place, Hawai‘i Kai, Honolulu, Hawai‘i.

>> The “Painkiller”, 2014 37.5-foot Boston Whaler Pleasure Craft, Hull No. BWCE1942D414, Registration No. HA-9849-H, held in the name of Hawai‘i Partners LLC.

>> Hawai‘i Longline Limited Entry Permit issued to the fishing vessel “Rachel”, Vessel Number 1050716, held in the name of Kama‘aina Holdings LLC.

>> $676,785.56 constituting proceeds of the sale of the “Rachel”, a Tuna Longliner Fishing Vessel, U.S. Registration Number 1050716, registered to Kama‘aina Holdings LLC.

>> 2017 Ferrari F12 Berlinetta, VIN ZFF74UFA5H0223173, held in the name of Hawaii Partners LLC.

>> $81,656.56 in funds seized from Hawai‘i Central Federal Credit Union, Account #XXXXX075, held in the name of Michael J. Miske.

>> $300,372.85 in funds seized from Bank of Hawai‘i, Account #XXXXX415, held in the name of Kama‘aina Termite and Pest Control, Inc.

>> $1,063,427.35 in funds seized from Bank of Hawai‘i, Account #XXXXXXX602, held in the name of Kama‘aina Termite and Pest Control, Inc.

>> $206,725.80 in funds seized from Bank of Hawai‘i, Account #XXXXX414, held in the name of O‘ahu Termite and Pest Management LLC, dba Oahu Termite and Pest Control LLC.

>> $170,105.72 in funds seized from Bank of Hawai‘i, Account #XXXXXXX218, held in the name of O‘ahu Termite and Pest Management LLC, dba Oahu Termite and Pest Control LLC.

>> $22,710.48 in funds seized from Bank of Hawai‘i, Account #XXXXX220, held in the name of Kama‘aina Plumbing and Renovations LLC.

>> Bank of Hawai‘i Cashier’s Check No. 429111 in the amount of $1,162,826.76 payable to Kama‘aina Termite and Pest Control.

>> 1951 Volkswagen, VIN 10234188, Hawai‘i License Plate: SYB865, Registered Owner: Hawai‘i Partners LLC.

>> 1956 Volkswagen, VIN 109382821, Hawai‘i License Plate: 56VDUB, Registered Owner: Hawai‘i Partners LLC.

>> 1957 Volkswagen, VIN: 1529889, Hawai‘i License Plate: BBYGRL, Registered Owner: Hawai‘i Partners LLC.

>> 1961 Volkswagen Van, VIN: 685167, Hawai‘i License Plate: SYB762, Registered Owner: Hawai‘i Partners LLC.

>> 1970 Ford Bronco, VIN: U15GLG85573, Hawai‘i License Plate: TTY105, Registered Owner: Hawai‘i Partners LLC.

>> Painting entitled “Ludavico & Ludovio” by RETNA.

>> Painting entitled “Watermark” by RETNA.

>> Painting entitled “Forever Young” by RETNA.

>> Painting entitled “Sangre Oscura” by RETNA.

>> Painting entitled “Graffiti Does It” by OG Slick.

>> Sculpture entitled “Slick Skull” by OG Slick.

>> Sculpture entitled “Uzi Does It” by OG Slick.

>> Painting entitled “Speaking in Tongues” by Alex “DEFER” Kizu.

>> Painting entitled “Spiritual Language” by Alex “DEFER” Kizu.