The Department of the Attorney General is leading a criminal investigation into mayoral candidate and City Councilman Rod Tam’s spending of city funds, Civil Beat has learned.

“From what I’ve been told, the investigation is indeed a criminal investigation in which the Honolulu Police Department is assisting the State Attorney General’s office,” said City Councilman Ikaika Anderson, who said police officials had interviewed him in conjunction with the investigation. “Everything that I’ve heard has been through HPD.”

A spokeswoman for the Honolulu Police Department said she would have to “defer comment” to officials at the Department of the Attorney General. Calls and an e-mail to the AG requesting comment weren’t returned.

“I cannot talk about it right now,” Tam said Tuesday, when asked about HPD’s criminal investigation into his spending. Asked to confirm the investigation was taking place, Tam responded: “I have no comment at this time.”

As recently as two weeks ago, Tam was open about the Honolulu Ethics Commission’s investigation into his spending of more than $10,000 in taxpayer monies on meals. At a forum for mayoral candidates in Waipahu, Tam characterized outrage from fellow council members over what they claimed was unethical spending as stylistic differences in leadership.

An Ethics Commission investigation found Tam was reimbursed more than $22,000 from the City Council’s contingency allowance over a three-year period. While council members are permitted to submit receipts from business meals for reimbursement, the commission found Tam paid less for some meals than what he charged the city, and requested reimbursement for some personal meals. The most infamous example of the latter was the $88 tab Tam listed as a business meeting but allegedly came from a Valentine’s Day dinner with his wife.

Ultimately, Tam received a $2,000 ethics violation citation, and was ordered to pay back $13,700 in monthly interest-free installments of $380.56. He was also removed as chair of the city’s Zoning Committee. Because the Attorney General’s investigation is ongoing, City Council officials say they can’t disclose all of the specifics.

“All I can say generally is they were asking questions in regards to the council’s annual contingency accounts, and the procedures in spending,” said City Council Chairman Todd Apo of his interview with police. “It’s criminal versus civil in the courts system, so the Ethics Commission investigation was the non-criminal civil side, and this is the criminal side of investigation.”

Tam’s attorney says he’s not aware of a criminal investigation, though he says he isn’t surprised by it either.

“You can indict a ham sandwich,” said Jack Schweigert, who represented Tam when he faced the Ethics Commission’s charges earlier this year, and said he would again represent Tam if he faces criminal charges. “And I know that it’s been rumored that there would be some additional investigation but some of these cases you see being brought, you scratch your head.”

Schweigert said he sees the issue as resolved, since Tam is repaying the city. He also maintains it wasn’t Tam’s intention to eke out extra money from city coffers.

“I don’t think Rod Tam intentionally did it,” Schweigert said. “If you look at the words in the contingency fund, they’re ambiguous in part and unclear in part and they’re subject to interpretation.”

(When asked two weeks ago what confused him about appropriate use of the contingency fund, Tam said it wasn’t a matter of confusion on his end: “It’s not that I didn’t understand, it’s that people don’t understand my style. I’m like (former Honolulu Mayor) Frank Fasi.”)

But Council Chair Apo says managing reimbursements appropriately is in no way confusing or vague.

“We obviously receive our ethics training and have our council rules and council manuals,” Apo said. “We have administrative people at the legislative branch who help deal with that, and answer any questions.”

Apo says it’s important for constituents to understand just how easy it is for council members to manage their tax dollars. He says investigations into Tam’s conduct prove that, even amid mismanagement, the system in place to protect taxpayer dollars is reliable.

“It shows that the process works,” Apo said. “When there are irregularities, they are discovered, and the ethics office goes through their investigative process. That should actually bring comfort to people that things do in fact get taken care of.”

Meantime, Tam is continuing his run for mayor. He won’t be able to file paperwork as a candidate until the City Council picks a date for the election.

“Council member Tam’s term ends at the end of this year,” said Councilwoman Ann Kobayashi. “But that doesn’t mean it’s guaranteed if you do something wrong. I guess we’ll just wait and see.”

While some City Council members have been more vocal than others in their calls for Tam’s resignation, it’s ultimately up to voters to choose his fate.

“That’s between Councilmember Tam and his constituents,” said Anderson. “The Council does not have the authority to remove him. Even if we wanted to remove him, the council would not have the authority. If his constituents wanted him removed from office at this point, they would move to impeach him. They certainly can go down that road, but (at this late stage in his term) the council would appoint someone to take his place. I have had people from his district tell me, ‘I didn’t vote for the man and I don’t want him to be a councilmember, but I do want to vote for his replacement.’”

UPDATE: On Wednesday, the Honolulu Ethics Commission confirmed that it turned over materials from its investigation into Tam’s spending to the attorney general’s office. Honolulu Police Department Spokeswoman Michelle Yu also confirmed that the department is collaborating with the attorney general’s office. She could not provide a timeline on how long the investigation would take.