At the request of prosecutors, a judge dropped charges Friday against a 32-year-old Hilo man police described as “a significant figure in the distribution and utilization of counterfeit currency being passed into our community’s circulation.”
Hilo District Judge Kanani Laubach dismissed four counts of first-degree forgery and a single count of fourth-degree theft against William Kaipo Jr.
Deputy Prosecutor Lucas Burns moved for the dismissal on Friday, explaining to the court that the state wasn’t ready to proceed with a preliminary hearing against Kaipo.
Kaipo’s court-appointed defense counsel, Christopher Bridges, did not object to the motion to dismiss the charges without prejudice, which leaves prosecutors the authority to refile the charges at a later date.
According to court documents filed by police, Kaipo was arrested at 4:10 p.m. May 13 after a cashier at Bayside Texaco in Hilo reported to police that Kaipo allegedly attempted to purchase through the gas station convenience store’s drive-thru, three slushie floats and a pack of USA Gold cigarettes, total value $30.62, with a counterfeit $100 bill.
Documents state Kaipo was still inside a Silver Acura on the gas station’s premises when police arrived.
Police arrested Kaipo and obtained a search warrant for the Acura.
Investigators allegedly found in the car 35 counterfeit $100 bills that had been $1 bills altered to look like $100 bills through a procedure known as “bill washing.” The process includes removing most of the original print from a smaller bill and reprinting it with a color computer printer to appear as a higher-denomination.
Also found in the car were five $1 bills with most of the original print removed and one $2 bill with the majority of the original print removed, according to court documents. Other items reportedly found were an HP mobile printer, a tablet with a Cricut app, a box of counterfeit detection pens, a counterfeit UV detection device, plus information about how to “wash” money.
After being advised of his rights, Kaipo allegedly admitted to officers he was responsible for the counterfeit bills and that he knew the bill he proffered as currency at the Texaco station was bogus. He also allegedly told police, in detail, the process he used to wash the bills and then alter the print to make them appear to be $100 bills.
Documents state Kaipo also was responsible for a $124.58 purchase on April 8 with two bogus $100 bills at Ace Hardware in Keaau. Kaipo alleedly received $75.42 in change for that purchase. The bills were later found to be counterfeit, and Kaipo allegedly was captured on surveillance video making the transaction.
According to police, the manager of Hwy X-press Mini Mart in Pepeekeo identified Kaipo as the individual who allegedly tried to buy goods there on May 11 using a counterfeit $100 bill. The manager told police the bill passed the counterfeit detection pen, but had a $1 bill marking in a corner and “felt fake.”
The manager declined to accept the bill for the purchase and, according to police, provided officers with surveillance snapshots identifying Kaipo as the responsible individual.
Documents state that Kaipo has no prior felony convictions.
Police on Monday urged the public to remain vigilant and be aware there may still be counterfeit bills circulating in the community.
The public can learn about the different security features of U.S. currency denominations at uscurrency.gov, police said.
Email John Burnett at jburnett@hawaiitribune-herald.com.