Maui accountant acted as treasurer for a Hawaii State Parent Student Teacher Association (PTSA) from 2004 to 2006. In October 2008, the PTSA realized funds were unaccounted for and an attorney general investigation found that Nathan stole nearly $34,000 from the nonprofit by writing himself checks and forging the signature.
Client pleaded no contest to charges of first-degree theft and six counts of second-degree forgery. Instead of jail time, Maui Circuit Judge Richard Bissen sentenced Client to five years’ probation, a $5,000 fine, 500 hours of community service, $33,963.32 in restitution, and an apology letter written to the PTSA.
While he was being prosecuted in the PTSA case, Client, currently 64, was still running his accounting business and asked several of his clients to write character reference letters to help him clear up a “misunderstanding with travel expenses for the PTSA.” These clients were completely unaware of Client’s charges and had no idea that Client was stealing from them as well.
Client embezzled money from his accounting clients, including Lanai Fine Art, Pacific Rim Publishing, and Dis ‘N Dat shop on Lanai, by having the business owners write him checks to cover their general excise tax payments while also setting up automated payment for the same taxes.
The majority of the money was embezzled from Lanai Fine Art before Nathan was sentenced in the PTSA case, while the thefts from Pacific Rim Publishing occurred during Client’s probation.
For these crimes, Client was charged with two reduced counts of second-degree theft, to which he pleaded no contest. Defense Attorney Cary Virtue recommended a plea agreement of a 30-day jail term and probation. Virtue said that Nathan had already begun to right his wrongdoings, having sold his house to make substantial payments, already paid Lanai Fine over $120,000 as well as going to counseling with a psychiatrist, and attending a men’s church group.
Deputy Prosecutor Lewis Littlepage said the plea agreement was made so that even if the businesses were to file bankruptcy, they could still get their money back.
2nd Circuit Judge Peter Cahill ordered Client to pay a total of $271,224 in restitution: $234,878 to Lanai Fine Art with 10 percent interest on the civil judgment, $21,346 to Pacific Rim Publishing and $15,000 to Barry Osman, owner of Dis ‘N Dat.
Client admitted that he abused his clients’ trust and hurt those closest to him. “What I did was totally wrong. In my own defense, for the past few years I have not been doing anything wrong. I’m trying to do everything I possibly can to repay.”
Noting “a total lack of control” and “evil intent,” Judge Cahill also sentenced Client to five years in prison on his most recent charges. Because he broke his probation, he was resentenced to a 10 years of jail time for first-degree theft in the PTSA case. The prison terms must be served concurrently, including five-year prison terms for six counts of second-degree forgery in the PTSA case.
“After looking at everything, I just see no alternative here,” the judge said. “Because I don’t think anything less would be sufficient.”