Investigators recommend criminal charges against former LBJ official
The Department of Homeland Security has concluded its investigation into the conduct of the hospital's former Procurement Manager, Joe Langkilde, whose contract was terminated in February. Obtained by KVZK news, the report has been submitted to the Attorney General's Office.
The report also outlines recommendations to file criminal charges against the relevant parties. As reported earlier, a container shipped under the hospital contained 250 cartons of Disposable Isolation Gowns and Medical Face Masks. It was hauled to Canton Mart and sold back to the LBJ at a markup price.
KVKZ News made repeated efforts to get direct comments from Mr Langkilde. However, efforts were unsuccessful as of press time.
The 13-page investigation report states the former LBJ Board of Director Dr. Jean Anderson, now an Executive Director of the board and Chairman Dr. Malouamaua Tuiolosega, requested assistance from Homeland Security over claims of criminal fraud within the LBJ.
The report also outlines testimonies from six witnesses, including the owner of the Canton store, Leone. It's alleged a container was received at the Port consigned to LBJ Medical Supply Division, and attention to Joe Langkilde, the hospital's Procurement Manager.
According to the Bill of Landing, the supplier was SHEZEN HYYT MANAGEMENT C'O. LTD based in China, while the Consignee was the Medical Supply Division. The shipment contained 250 cartons of Disposable Isolation Gowns and Medical Face Masks.
Customs Officers noted that while the container was cleared under the LBJ name, the container was being hauled to a local business premises in Puapua, Canton Mart. The report confirms that Canton Mart/Lucky Star Inc. owner Jessie Xiao Zheng confirmed that Lucky Star didn't pay the excise tax since the container is under LBJ hospital.
Since it's a government entity, it is exempted from paying taxes.
The LBJ Acting Procurement Manager Michelle Peko clarified that their division only cleared the container, with no invoice e on the procurement to pay for this container. The report reveals no paper trail to this specific container at their office. Investigators met with Lucky Star Inc. Jessie Xiao Ying regarding the container hauled at Canton Mart/Lucky Star Inc. in Puapua, Leone.
According to the report, Jessie confirmed the container belongs to LBJ hospital, and only medical supplies included the isolation gowns and face masks. Jessie told investigators the container was shipped by her brother, Jinfeng Zheng, in China.
Asked why the container was hauled to Leone when it is the property of the LBJ, Jessie said Joe Langkilde instructed her to move it to Puapua only because LBJ Hospital didn't have the space for it. Jessie further said whenever the LBJ requests an order, Lucky Star delivers the requested orders to LBJ Hospital, but they never collected any funds.
As reported earlier, the items inside the container that were cleared under the LBJ, whereas no excise tax was paid, were sold back to the LBJ on an incremental basis and at a significant markup in price.
LBJ paid up to 66% more for products through Canton Mart, while the same effects were available from prior suppliers for considerably less.
Back to the report, the Homeland Security investigation report recommended that Mr Langkilde be charged with forgery and non-payment of excise tax. Furthermore, there were recommendations to file criminal charges against Jesse Zheng with conspiracy.