State Rep. David Alcos of Hawaii has admitted to failing to disclose millions of dollars in debt owed to the IRS and other creditors on his financial disclosure statements during his 2020 and 2022 campaigns. The Hawaii State Ethics Commission fined Alcos $12,500 and referred him for possible disciplinary action for violating state ethics laws. Alcos is running for re-election against Democrat John Clark III.
Alcos failed to report debts related to his construction business and a tax lien from the IRS on his disclosure statements, including a $1.97 million and $60,322 IRS liens from 2017. His company, D.A. Builders, is also involved in various lawsuits over unpaid work at the International Market Place.
Under state law, financial disclosures are required for all elected officers and candidates, including reporting incomes over $1,000, ownership interests, and creditors owed over $3,000. Alcos failed to report multiple debts, including liens from the IRS and state Department of Taxation, as well as judgments from creditors like Pacific Gypsum Supply and Cades Schutte LLP.
Alcos has disputed some of the debts but agreed that he should have disclosed them all. In addition to the fine and referral for disciplinary action, he is required to amend his financial disclosure statements for 2020, 2022, and 2023. Alcos voluntarily disclosed additional debts during the investigation, including judgments owed to Allied Building Productions Corporation, Bank of Hawaii, and A&B Properties Hawaii.
The resolution of charges highlights the importance of transparency and trust in public officials, as the public has a right to know about potential conflicts of interest that could impact a legislator’s ability to act in the public’s best interest.
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