Hanabusa led the drive to get lawmakers to approve the Ko Olina tax credit in 2002 and 2003, but the bill was written so that only developer Jeff Stone could benefit from it. Less than a month after the $75 million tax credit was approved, Stone sold a luxury Ko Olina townhouse to Hanabusa's then-fiance Souza. One of Stone's companies financed the sale by lending Souza $405,773 for the purchase.
Souza, who is now Hanabusa's husband and campaign chairman, bought the Kai Lani townhouse for $569,023 in mid-2003 and sold it for $990,000 in Jan. 2004. Hanabusa noted that Stone claimed only $3.45 million of the $75 million tax credit, and said there "has never been any wrongdoing found" in connection with the tax credit.
The Korean War veteran and former Air Force pilot also served four terms in the Hawaii state House of Representatives, as well as one term in the state Senate.
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