Campaign Spending Commission

State of Hawaii
Docket No. 18-08
In Re The Matter of Mark K. Ing and Friends of Kaniela Ing, Respondents
June 20, 2018
Summary of Docket No. 18-08
Total Counts - 32
Counts I and II – Failure to Amend Organizational Report
Count III – Unauthorized Handling of Campaign Funds
Counts IV-XXVI – 23 False Reports (2011-2016)
Count XXVI(A) – Failure to Timely Deposit Contributions
Count XXVII – Excess Contributions
Count XXVIII – Commingling of Campaign and Personal Funds
Count XIX – Prohibited Use of Campaign Funds / Use of Campaign Funds for
Personal Use
Count XXX – Exceeding Expenditure Limit as a Publicly Funded Candidate
Count XXXI – Failure to File Late Contributions Report
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 Counts I and II
Failure to Amend Organizational Report
• Count I (Violation of HRS §11-322)
• Bank of Hawaii Account #2 opened on June 4, 2012 and not reported on Respondents Organizational
Report.
• $50 Fine
• Count II (Violation of HRS §11-322)
• Bank of Hawaii Account #3 opened on September 3, 2013 and not reported on Respondents
Organizational Report.
• $50 Fine
*Respondents had a total of four (4) campaign bank accounts as follows:
1) Bank of Hawaii Account #1 – Opened October 21, 2011 / Closed June 4, 2012
2) Bank of Hawaii Account #2 – Opened June 4, 2012 / Closed January 3, 2013
3) Bank of Hawaii Account #3 – Opened September 3, 2013 / Closed February 9, 2015
4) Bank of Hawaii Account #4 – Opened April 21, 2015 / Still Open
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Count III
Unauthorized Handling of Campaign Funds

• Count III (Violation of HRS §11-324(d))

• Respondent Ing made deposits to and withdrawals from Bank of Hawaii Accounts #1-4
for the time periods of November 9, 2011 through May 18, 2012 and July 22, 2013
through August 9, 2016.
• During this time, Respondent Ing was not a treasurer or deputy treasurer of Respondent
Friends and was not authorized to handle campaign funds.
• $100 Fine

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Summary of Counts IV-XXVI
23 False Reports (2011-2016)

• Respondents failed to disclose $28,915.72 in

contributions/receipts
• Respondents failed to disclose $87,559.89 in expenditures (the
unreported expenditures were about 62% of the total amount of
expenditures reflected in Respondents’ bank statements)

-Paragraph 23 of the complaint

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Counts IV-XXVI (Violation of HRS §11-331(a) and §11-333(a))
23 False Reports (2011-2016)

• Count IV – Inaccurate Supplemental Report-July 1 to December 31, 2011

(Bank Deposits-$866.79 and Withdraws-$658/Reported Contributions-
$5,147 and Expenditures-$4,386.58)
• $500 Fine and file amended report
• Count V – Inaccurate 1st Preliminary Primary Report-January 1 to June
30, 2012 (Bank Deposits-$6,835.12 and Withdraws-$6,499.14/Reported
Contributions-$6,440 and Expenditures-$3,542.03)
• $500 Fine and file amended report
• Count VI – Inaccurate 2nd Preliminary Primary Report-July 1 to July 27,
2012 (Bank Deposits-$7,263.87 and Withdraws-$6,360.06/Reported
Contributions-$3,620 and Expenditures-$2,332.15)
• $500 Fine and file amended report
• Count VII – Inaccurate Final Primary Report-July 28 to August 11, 2012
(Bank Deposits-$2,155 and Withdraws-$2,971.28/Reported Contributions
and Loan-$1,965 and Expenditures-$1,473.49)
• $500 Fine and file amended report
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Counts IV-XXVI (continued)
23 False Reports (2011-2016)
• Count VIII – Inaccurate Preliminary General Report-August 12 to October
22, 2012 (Bank Deposits-$18,204.72 and Withdraws-
$17,862.28/Reported Contributions-$16,152.12 and Expenditures-
$12,174.45)
• $500 Fine and file amended report
• Count IX – Inaccurate Final Election Period Report-October 23 to
November 6, 2012 (Bank Deposits-$2,796.05 and Withdraws-
$3,402.22/Reported Contributions-$0 and Expenditures-$0)
• $500 Fine and file amended report
• Count X – Inaccurate Supplemental Report-November 7 to December 31,
2012 (Bank Deposits-$240.11 and Withdraws-$1,204.24/Reported
Contributions-$0 and Expenditures-$0)
• $500 Fine and file amended report
• Count XI – Inaccurate Supplemental Report-January 1 to June 30, 2013
(Bank Deposits-$595.56 and Withdraws-$0/Reported Contributions-
$3,875 and Expenditures-$0)
• $500 Fine and file amended report 7
Counts IV-XXVI (continued)
23 False Reports (2011-2016)
• Count XII – Inaccurate Supplemental Report-July 1 to December 31, 2013 (Bank
Deposits-$8,875.31 and Withdraws-$0/Reported Contributions-$5,120 and
Expenditures-$0)
• $500 Fine and file amended report
• Count XIII – Inaccurate 1st Preliminary Primary Report-January 1 to June 30, 2014
(Bank Deposits-$18,564.82 and Withdraws-$4,110.47/Reported Contributions-$10,175
and Expenditures-$2,081.91)
• $500 Fine and file amended report
• Count XIV – Inaccurate 2nd Preliminary Primary Report-July 1 to July 25, 2014 (Bank
Deposits-$4,224.56 and Withdraws-$8,253.27/Reported Contributions-$0 and
Expenditures-$0)
• $500 Fine and file amended report
• Count XV – Inaccurate Final Primary Report-July 26 to August 9, 2014 (Bank Deposits-
$224.01 and Withdraws-$1,689.43/Reported Contributions-$0 and Expenditures-$0)
• $500 Fine and file amended report
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Counts IV-XXVI (continued)
23 False Reports (2011-2016)
• Count XVI – Inaccurate Preliminary General Report-August 10 to October
20, 2014 (Bank Deposits-$224.01 and Withdraws-$17,688.45/Reported
Contributions-$0 and Expenditures-$109.62)
• $500 Fine and file amended report
• Count XVII – Inaccurate Final Election Period Report-October 21 to
November 4, 2014 (Bank Deposits-$1,662.03 and Withdraws-
$1,199.43/Reported Contributions-$0 and Expenditures-$0)
• $500 Fine and file amended report
• Count XVIII – Inaccurate Supplemental Report-November 5 to December
31, 2014 (Bank Deposits-$637.61 and Withdraws-$1,847.83/Reported
Contributions-$25 and Expenditures-$0)
• $500 Fine and file amended report
• Count XIX – Inaccurate Supplemental Report-January 1 to June 30, 2015
(Bank Deposits-$2,466.10 and Withdraws-$174.55/Reported
Contributions-$3,900 and Expenditures-$12,547.48)
• $500 Fine and file amended report
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Counts IV-XXVI (continued)
23 False Reports (2011-2016)
• Count XX – Inaccurate Supplemental Report-July 1 to December 31, 2015
(Bank Deposits-$3,706.16 and Withdraws-$5,530.01/Reported
Contributions-$3,480 and Expenditures-$2,175.88)
• $500 Fine and file amended report
• Count XXI – Inaccurate 1st Preliminary Primary Report-January 1 to June
30, 2016 (Bank Deposits-$42,640.81 and Withdraws-
$27,043.85/Reported Contributions-$28,023.69 and Expenditures-$0)
• $500 Fine and file amended report
• Count XXII – Inaccurate 2nd Preliminary Primary Report-July 1 to July
29, 2016 (Bank Deposits-$13,227.26 and Withdraws-
$11,062.66/Reported Contributions-$15,265.98 and Expenditures-
$13,637.66)
• $500 Fine and file amended report
• Count XXIII – Inaccurate Final Primary Report-July 30 to August 13,
2016 (Bank Deposits-$5,674.18 and Withdraws-$13,936.63/Reported
Contributions-$1,101 and Expenditures-$4,171.67)
• $500 Fine and file amended report 10
Counts IV-XXVI (continued)
23 False Reports (2011-2016)

• Count XXIV – Inaccurate Preliminary General Report-August 14 to

October 24, 2016 (Bank Deposits-$124.88 and Withdraws-
$7,077.57/Reported Contributions-$0 and Expenditures-$0)
• $500 Fine and file amended report
• Count XXV – Inaccurate Final Election Period Report-October 25 to
November 8, 2016 (Bank Deposits-$2,504.55 and Withdraws-
$1,915.77/Reported Contributions-$0 and Expenditures-$0)
• $500 Fine and file amended report
• Count XXVI – Inaccurate Supplemental Report-November 9 to December
31, 2016 (Bank Deposits-$250 and Withdraws-$739.61/Reported
Contributions-$0 and Expenditures-$0)
• $500 Fine and file amended report

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Count XXVI(A)
Failure to Timely Deposit Contributions
• Count XXVI(A) (Violation of HRS §11-351(a) & HAR §3-160-30(b))
• Respondents held a fundraiser on April 10, 2013 at Ferguson’s in Honolulu.
• At the time, Respondents did not have an open campaign account.
• Respondent Ing opened Bank of Hawaii Account #3 on September 3, 2013 and made a $1,900
deposit comprised of twelve checks, which were dated as follows:
March, 14, 2013 ($100) April 16, 2013 ($100)
March 28, 2013 ($50) April 17, 2013 ($25)
March 30, 2013 ($100) April 30, 2013 ($100)
April 3, 2013 ($250) May 1, 2013 ($500)
April 5, 2013 ($25) May 1, 2013 ($500)
April 8, 2013 ($50) May 6, 2013 ($100)

• $300 Fine ($25 for each check that was not timely deposited within seven days of
Respondents receipt of them)

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Count XXVII
Excess Contributions
• Count XXVII (Violation of HRS §11-357)
• Respondent Ing’s contribution limit was $2,000 from a single person for the
2016 election period (November 4, 2014 to November 8, 2016).
• 1st contribution of $2,000 from Jeffrey Bronfman via ActBlue Hawaii dated April
30, 2016.
• 2nd contribution of $2,000 from Jeffrey Bronfman via ActBlue Hawaii dated
August 28, 2016.
• ActBlue Hawaii forwarded both contributions to Respondents.
• Bronfman’s contributions were $2,000 over the limit for Respondent Ing’s office
of State House of Representatives.
• Escheat $2,000 to the Hawaii Election Campaign Fund

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Count XXVIII
Commingling of Campaign and Personal Funds

• Count XXVIII (Violation of HAR §3-160-30(a))

• On September 14, 2016, Respondent Ing deposited Jeffrey Bronfman’s August 28, 2016
$2,000 contribution directly into Bank of Hawaii Account #5, Respondent Ing’s personal
account.
• The commingling of campaign funds with personal funds is prohibited.
• $1,000 Fine
• $2,000 Personal Reimbursement from Respondent Ing to Friends

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Count XXIX
Prohibited Use of Campaign Funds and Use of Campaign Funds for
Personal Use
• Count XXIX (Violation of HRS §11-382(3))
• Respondent Ing transferred from his campaign account, $1,500 to his Oahu landlord’s
account, $625 to his Maui landlord’s account, and $219.55 to make a payment on his
domestic partner’s VISA account.
• These are personal expenses that totaled $2,344.55.
• $1,172 Fine (50% of personal expenses, rounded down)
• $2,344.55 Personal Reimbursement from Respondent Ing to Friends

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Count XXX
Exceeding Expenditure Limit as a Publicly Funded Candidate

• Count XXX (Violation of HRS § § 11-426 & 11-428, HAR §3-160-64)

• Respondent Ing signed and filed the Affidavit to Voluntarily Agree with Campaign
Expenditure Limits for the 2012 election.
• Respondent Ing agreed to abide by the expenditure limit of $16,199 per election.
• During the general election period of August 12, 2012 to November 6, 2012, Respondent
Ing spent $18,494.56 and exceeded the expenditure limit for the general election on
October 26, 2012.
• Respondent Ing did not notify the Commission that he had exceeded the expenditure
limit.
• $500 Fine

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Count XXXI
Failure to File Late Contributions Report

• Count XXXI (Violation of HRS §11-338)

• Respondents received a $2,000 contribution from Operating Engineers Local No. 3 PAC
on November 1, 2012, and failed to file the 2012 General Election Late Contributions
Report covering the period of October 23, 2012 through November 2, 2012 which was
due on November 5, 2012.
• $750 Fine and file 2012 General Election Late Contributions Report

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Relief Requested

A. Make a preliminary determination, pursuant to HRS §11-405(a), that

there is probable cause to believe that the Hawaii campaign finance law
has been violated by Respondents as described above.
B. Assess a fine in the amount of $15,422 (all Counts except Count XXVII)
against Respondents and order Respondent Ing to use personal funds to
pay the fine if Respondent Friends does not have sufficient campaign
funds to pay the fines.
C. Order that any and all administrative fines be deposited in the general
fund, pursuant to HRS § 11-410(e) within twenty days of Respondents’
receipt of this Order.
D. Order Respondents to escheat $2,000 (excess contribution) to the
Hawaii Election Campaign Fund (Count XXVII).

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Relief Requested (continued)

E. Order Respondent Ing to personally reimburse $2,000 (Bronfman)

plus $2,344.55 to Respondent Friends’ campaign account (Count
XXVII and Count XXVIII), within twenty days of receipt of this Order.
F. Order Respondents to amend the twenty-three (23) disclosure reports
referenced in Counts IV through XXVI, so that the reports accurately
reflect the activity in the bank statements, within twenty days of receipt
of this Order.
G. Order Respondents to file the 2012 General Election Late Contributions
Report within twenty days of receipt of this Order.
H. In the alternative, Staff recommends that the Commission refer this
complaint for prosecution.

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