Complaints pour in about Honolulu Liquor Commission as critics call for overhaul

HONOLULU (HawaiiNewsNow) - The agency in charge of overseeing liquor sales on Oahu is under fire again, facing more allegations of corruption and discrimination.

An amended complaint, filed Monday by LGBTQ business owners, cites civil rights violations by the Honolulu Liquor Commission and the state Department of Commerce and Consumer Affairs, along with individual employees.

The owners of Scarlet Honolulu and Gay Island Guide expanded the number of violations to their federal lawsuit.

But these aren’t the only business owners speaking out.

Lanikai Brewing Company Founder Steve Haumschild isn’t part of the lawsuit but has been vocal about the questionable behavior by the commission, especially during the pandemic.

“They led with an iron fist,” Haumschild said, adding that he was unfairly targeted with citations and he was forced to shut down several times even though he followed all the rules.

Last month, the city’s own attorneys dropped the case against Lanikai Brewing Co.

“After a thorough review of this case, I would ask the commission to dismiss these charges,” said Deputy Corporation Counsel Daniel Jacob.

Haumschild said it was suspicious that he was inspected nine times over three months after he became vocal about the agency.

“You can only be left to think that there’s some sort of underlying corruption or gross incompetence,” Haumschild said.

His attorney, Megan Kau, said the dismissal by the city attorneys proves something was amiss.

“There was no basis to shut down Lanikai,” Kau said.

She said that makes her wonder about other businesses forced to close by the agency.

There is a growing list of restaurants and bars calling for an overhaul of the liquor commission, which recently saw commissioners and the administrator abruptly resign.

Robbie Baldwin, founder of Scarlet Honolulu, said the agency’s investigators were harassing his staff and patrons years before the pandemic.

“It’s just becoming very apparent that this organization is completely rotten from the top to the bottom,” said Baldwin.

The federal complaint calls the commission a “vastly corrupt entity,” citing scandals and criminal charges against previous administrators and investigators.

The city declined Hawaii News Now’s requests for comment on the pending case.

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