HAWAII DRUG GANG DISPUTE LINKED TO CHINATOWN MURDER

When Joseph Peneueta was gunned down in Chinatown a week ago today,
it marked the second time in two years that deadly violence from
California's illicit drug trade spilled over onto Honolulu's streets,
according to law enforcement officials.

Peneueta's shooting was the result of a dispute among business
partners, police believe.

At the time of the shooting, Peneueta and the two men accused of
killing him - Iosefa M. Pasene, 21, and Zorro R. Rye, 24 - were the
subject of a U.S. Drug Enforcement Administration investigation into
allegations that they smuggled cocaine and crack into Honolulu from
the San Francisco Bay Area. All three have prior county and federal
drug convictions and hail from San Francisco.

Pasene and Rye were indicted Thursday on charges of murdering the
35-year-old Peneueta at 4:10 a.m. on March 28 near the intersection
of River and Pauahi streets.

Armed with an AK-47 and a shotgun, Pasene and Rye gunned down
Peneueta after Peneueta "dissed" the two, according to police. After
the attack, the assailants drove away and Peneueta was left lying in
the street under the glow of streetlights as onlookers gathered nearby.

Police recovered 14 shell casings from a rifle and four spent shotgun
casings at the scene.

"This incident illustrates why we need strong drug laws and
punishment of those seeking to profit by trafficking," said Honolulu
Police Chief Boisse P. Correa. "It is a dangerous undertaking, not
only for those involved but for law enforcement and the entire community."

Pasene and Rye are being held without bail because they pose a
"significant threat to the public and community," according to prosecutors.

DRUG GANG

All three men were members of the Chinatown drug gang known as the
"Friscos," coined after their San Francisco roots, but they began to
argue recently after business went bad, law enforcement officials say.

Pasene was arrested the evening before the shooting on suspicion of
third-degree promotion of a dangerous drug. But he was released after
he and another man posted bail. At the time of the shooting, Rye was
also free on bail pending sentencing for first-degree promotion of a
dangerous drug, court records show.

Two days after the killing, Pasene was picked up on a federal arrest
warrant by DEA agents and Honolulu police. The DEA investigation is
open and ongoing.

The shooting, which occurred in the middle of a Downtown street, was
reminiscent of the execution-style killing of Benjamin Grajeda in May 2007.

Grajeda, an alleged drug dealer from North Hollywood, Calif., ran
afoul of a group of Maui drug dealers originally from Alabama and was
kidnapped and then gunned down in the middle of Kane'ohe Bay Drive
when he tried to get away.

"Rival drug gang members shooting each other in the street is not
something we usually see in Hawai'i. You typically see shootings like
this in larger, urban areas on the Mainland," said FBI Special Agent
Brandon Simpson.

"This office will continue to work with our federal and local
law-enforcement partners to monitor Mainland and local drug
trafficking organizations and ensure that their feuds don't end up on
our streets."

KANE'OHE SHOOTING

The Grajeda incident began when Grajeda was allegedly kidnapped by
three men who forced their way into his Pu'uohala'i Place apartment.

The group intended to rob Grajeda of cash and drugs, police said.
Grajeda was placed in the trunk of a car but managed to escape.

After the shooting, police staged an islandwide manhunt and arrested
Jerrico Dewon "Rick" Lindsey and William Freeman in Hale'iwa.
Reginald "Red" Pettway was allegedly with them but eluded arrest and
returned to Alabama.

Lindsey, 28, the accused shooter, is charged with second-degree
murder, first-degree burglary, first-degree robbery, kidnapping,
first-degree terroristic threatening and four firearm offenses. His
trial is pending.

Freeman, who told police he drove the getaway car, was to be tried on
charges of kidnapping and hindering prosecution.

Melissa Ordonez, 22, also known as Rihanna Joy Valentino, allegedly
set up the drug-related heist, police have said.

Ordonez told the other suspects that Grajeda had a large amount of
drugs and money at the apartment, but none was found, police said.
She was charged with being an accomplice to first-degree burglary,
first-degree robbery and kidnapping.

Advertiser Staff writer Jim Dooley contributed to this report.