HONOLULU (KHON2) — The Federal Judge J. Michael Seabright accepted the Kealohas’ guilty plea Tuesday. Prosecutors say the plea agreement that Louis and Katherine Kealoha entered into will bring some vindication for additional victims.
Katherine pled guilty to bank fraud after submitting false information to get a loan. Her husband Louis also pled guilty to bank fraud stating on a loan application, he and his wife falsely reported that they were receiving rental income from a pool house, but they, in fact, were not.
“I’m not even thinking about myself right now I’m thinking about the negative impact that all of this had on the community, the Police Department, family, and friends,” said Louis. “All I know is that I’m going to do my best to redeem myself and I’m sorry.”
Alison Lee Wong was also brought up. When the Judge questioned Katherine further, she said she wrote an email and used Alison Lee Wong’s email address. Katherine’s attorney says she’s ready to move on.
“To a large degree I think she’s had it and wants to get on with her life, and the best way to do that is to get this over with,” said Earle Partington.
In addition, Katherine pled guilty to identity theft and misprision of felony. The identify theft comes after Katherine falsified a police report and got an officer who she did not name to sign it.
Katherine also said she knew her brother Rudolph Puana was involved in a drug case but did not report it to authorities and withheld information from detectives.
She said in court, “shortly after a month, I already had these alarm bells going off. I had information that I should’ve taken to the authorities.”
The Judge asked, “did you do that to protect your brother?”
Katherine said, “yes, I did.”
Prosecutor Michael Wheat says it took a long time to get this point.
“Today’s pleas will bring some vindication for additional victims of the Kealohas’ fraud and will allow us to move on to do our continue investigation,” said Wheat.
Katherine’s uncle Gerard Puana says despite the guilty pleas, she’s never apologized.
‘No apology to your grandmother? No apology to me? After everything, you put your grandmother through no apology? That’s narcissistic, that’s evil,” said Puana.
We’re told the sentencing that was supposed to take place on October 31st has been postponed. But there will be a hearing on that day to discuss dates to go over the sentencing guidelines for all 4 defendants.