Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 1 of 42

ORIGINAL

SORDER
EAIJECOURT
D

Bt

JEFFERSON B. SESSIONS III
United States Attorney General
ALANA W. ROBINSON
Acting United States Attorney
MICHAEL G. WHEAT, CBN 118598
ERIC J. BESTE, CBN 226089
JANAKI S. GANDHI, CBN 272246
COLIN M. MCDONALD, CBN 286561
Special Attorneys to the Attorney General
United States Attorney' s Office
880 Front Street, Room 6293
San Diego, CA 92101
Tel: 619-546-8437/6695/8817/9144
Email: michael.wheat@usdoj .gov

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OF THE

FILEDINTHE

UNITED STATES DISTRICT COURT
DISTRICT OF HAWAII

OCT 19 2017
at.!\- .o'

·~ e!"d~min.E.._M. u6

~uC. dclTIA, CLERK

Attorneys for the United States

UNITED STATES DISTRICT COURT
DISTRICT OF HAWAll

UNITED STATES OF AMERICA,
Plaintiff,

Case NO.C R1

2 0 0 5 8 2JMS

INDICTMENT

v.

KATHERINE P. KEALOHA (1 ),
aka Katherine E. Kealoha,
aka Kathy Kealoha,
aka Kat,
aka Alison Lee Wong,
LOUIS M. KEALOHA (2),
DEREK WAYNE HAHN (3),
MINH-HUNG NGUYEN (4),
aka Bobby Nguyen,
GORDON SHIRAISHI (5), and
DANIEL SELLERS (6),
Defendants.

Title 18, U.S.C., Section 371 Conspiracy to Commit Offenses; Title 18,
U.S.C., Section 1512(c) - Obstruction of
Official Proceeding; Title 18, U.S.C.,
Section 1001 - False Statements to
Federal Officer; Title 18, U.S.C., Section
1344 - Bank Fraud; Title 18, U.S.C.,
Section 1028A - Aggravated Identity
Theft; Title 18, U.S.C. , Section
982(a)(2)(A) - Criminal Forfeiture.

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The Grand Jury charges, at all times material:
INTRODUCTORY ALLEGATIONS
1.

Defendant KATHERINE P. KEALOHA (1) ("K. KEALOHA") was an

attorney licensed to practice in the State of Hawaii.

From 1993 to 2001,

K. KEALOHA worked in the Department of the Prosecuting Attorney ("DPA") for
the City and County of Honolulu, first as an intern, and later as a Deputy Prosecuting
Attorney. From 2001 to 2006, K. KEALOHA was a solo practitioner in Honolulu,
practicing criminal defense, personal ·injury, and family law.

In 2006,

K. KEALOHA returned to work as a Deputy Prosecuting Attorney for the DPA. In
2008, she was appointed the Director of the Office of Environmental and Quality
Control for the State of Hawaii. In 2010, K. KEALOHA again returned to the DPA
as a Deputy Prosecuting Attorney, ultimately becoming a supervisor in the office.
2.

Defendant LOUIS M. KEALOHA (2) ("L. KEALOHA"), the husband

of K. KEALOHA, was an officer in the Honolulu Police Department ("HPD") for
over 30 years. L. KEALOHA had an undergraduate degree in criminal justice and
business administration, a graduate degree in criminal justice, and a doctorate degree
in education from the University of Southern California. During his career with
HPD, L. KEALOHA rose through the ranks and, ultimately, was selected in 2009 as
HPD's Chief of Police.
3.

HPD was the largest police department in the State of Hawaii, and was

responsible for providing law enforcement to almost one million residents on the
2

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island of Oahu. The unit of HPD responsible for investigating criminal offenses and
assisting in their prosecution was the Criminal Investigation Division ("CID"). A
separate, federally-authorized and specialized unit of HPD called the Criminal
Intelligence Unit ("CIU") was responsible for gathering intelligence and data on
organized crime, terrorism, and gang threats facing the City and County of Honolulu.
The members of CIU did not collect evidence to be used in the investigation and
prosecution of criminal cases, but instead, passed intelligence information about
criminal threats to other units in HPD and federal law enforcement partners.
Because of their specialized duties and responsibilities, officers in CIU were
supervised by a lieutenant, who reported to a captain, who ultimately reported to the
Chief of Police, which from 2009 to 2017 was L. KEALOHA. Due to that close
relationship, the Chief of Police played a direct role in selecting and appointing
officers to CIU.
4.

Defendant DEREK WAYNE HAHN (3) ("HAHN") joined HPD as a

police officer in 1997, and held a variety of positions on the force. In 2013, at
L. KEALOHA's suggestion, HAHN was appointed as lieutenant of CIU. HAHN
was elevated to Acting Captain and commanding officer of CIU in 2014, a position
he held until 2016. In approximately 2014, HAHN, K. KEALOHA, and another
individual formed Discount Energy Solutions, LLC, a residential solar company.
5.

Defendant MINH-HUNG NGUYEN (4) ("NGUYEN") joined HPD as

an officer in 2006. From approximately 2012 to 2017, NGUYEN was assigned to

3

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CIU at the rank of a footman. From approximately 2010 to 2014, NGUYEN was
married to K. KEALOHA's niece ("M.N.").
6.

Defendant GORDON SHIRAISHI (5) ("SHIRAISHI") joined HPD in

1983 as a police officer. From approximately 2011 to 2014, SHIRAISHI was the
Captain and commanding officer of CIU. From 2014 to 2017, SHIRAISHI was a
Major in charge of the Training Division ofHPD.
7.

Defendant DANIEL SELLERS (6) ("SELLERS") joined HPD in 1997,

worked as a corporal in CIU from 2009 to 2011, became a detective in CID, and
eventually returned to CIU as a detective in 2011. SELLERS and K. KEALOHA
met in high school, dated for several years, and continued a social and professional
relationship for over 20 years.
8.

Niall Silva ("Silva") (charged elsewhere) was a police officer employed

with HPD. From approximately 2012 to December 2013, Silva was assigned to CIU
as a technician.
9.

The United States Postal Inspection Service ("USPIS") was a federal

law enforcement agency and arm of the executive branch of the United States
designated to support and protect the United States Postal Service and its employees,
infrastructure, and customers; to enforce the laws that defend the nation's mail
system; and to ensure public trust in the mail. As part of its lawful and legitimate
functions, USPIS investigated crimes against the property and the operation of the
Postal Service and, where sufficient evidence existed, referred such offenses for
4

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criminal prosecution. When investigating such crimes, it was material to USPIS to
receive accurate information from potential witnesses.
10.

The United States Attorney's Office for the District of Hawaii

("USAO-Hawaii") was an agency of the United States and arm of the executive
branch that, among other matters, prosecuted violations of federal criminal law in
the United States District Court for the District of Hawaii ("USDC-Hawaii").
11.

The Federal Bureau of Investigation ("FBI") was a federal law

enforcement agency and arm of the executive branch of the United States designated
to investigate alleged violations of federal criminal law dealing with deprivation of
civil rights and obstruction of justice.
Financial Accounts of K. KEALOHA and L. KEALOHA
12.

Between 2004 and 2017, defendants K. KEALOHA and L. KEALOHA

opened and controlled over thirty separate bank accounts at various financial
institutions located in the State of Hawaii. Among the banks and credit unions used
by defendants L. KEALOHA and K. KEALOHA to hold and move money were
Aloha Pacific Credit Union ("APCU"), American Savings Bank ("ASB"), Bank of
Hawaii ("BOH"), First Hawaiian Bank ("FHB"), Hawaii Law Enforcement Credit
Union ("HLECU"), Hawaii Central Federal Credit Union ("HCFCU"), Hawaii State
Federal Credit Union ("HSFCU"), and Hawaii USA Federal Credit Union
("HUSAFCU"), each of which qualified as a "financial institution" pursuant to Title
18, United States Code, Section 20.
5

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Misappropriation of Trust Funds
13.

In or about 2004, while employed as a private attorney, K. KEALOHA

was appointed by the Hawaii state court as trustee and guardian for two minor
children (R.T., then age 12, and A.T., then age 10). The state court further ordered
K. KEALOHA to create individual trust account~ for R.T. and A.T., and to deposit
over $167 ,000 to be held in trust for the benefit of R. T. and A. T. Pursuant to a state
court order, all disbursements and transactions associated with these trust accounts
were to be approved by both K. KEALOHA and her co-counsel in the state court
guardianship case ("Attorney 1").
14.

In or about May 2004, K. KEALOHA opened two separate trust

accounts for R.T. and A.T. ("the Trust Accounts"), each containing over $83,884 in
trust proceeds, but (in contravention of the Hawaii state court order) identified only
herself as the trustee and authorized signatory on the Trust Accounts.
15.

Between May 2004 and February 2012, without notice to or approval

from R.T., A.T., or Attorney 1, K. KEALOHA used almost all the funds in the Trust
Accounts to pay the personal expenses of L. KEALOHA and K. KEALOHA,
including:
a.

On or about January 4, 2008, K. KEALOHA pledged one of the

Trust Accounts as collateral for a $50,000 personal loan to K. KEALOHA
from ASB ("ASB x3126");

6

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b.

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On or about March 1, 2008, K. KEALOHA pledged one of the

Trust Accounts as collateral for a $38,500 personal loan to K. KEALOHA
from ASB ("ASB x3296");
c.

On or about January 12, 2009, K. KEALOHA withdrew $4,500

in cash from a Trust Account;
d.

On or about March 19-20, 2009, K. KEALOHA pledged one of

the Trust Accounts as collateral for a $55,082 personal loan fromASB ("ASB
x5383"), and used a cashier's check to transfer $20,000 from ASB x5383 to
pay for L. KEALOHA and K. KEALOHA's personal expenses;
e.

On or about March 31, 2009, K. KEALOHA withdrew $3,300 in

cash from a Trust Account;
f.

On or about May 18, 2009, K. KEALOHA transferred $5,200

from a Trust Account to pay for L. KEALOHA and K. KEALOHA's personal
expenses, including their home mortgage payment;
g.

On or about May 18, 2009, K. KEALOHA withdrew $900 in

cash from a Trust Account;
h.

On or about May 18, 2009, K. KEALOHA caused an online

transfer of $1,000 from a Trust Account to pay for personal expenses;
1.

On or about June 22, 2009, K. KEALOHA transferred $6,500

from a Trust Account to pay for L. KEALOHA and K. KEALOHA's personal
expenses, including their mortgage payment;

7

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J.

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On or about June 26, 2009, K. KEALOHA withdrew $2,000 in

cash from a Trust Account;
k.

On or about June 26, 2009, K. KEALOHA transferred $4,000

from a Trust Account to pay for L. KEALOHA and K. KEALOHA's personal
expenses;

1.

On or about August 5, 2009, K. KEALOHA withdrew $1,100 in

cash from a Trust Account;
m.

On or about March 19, 2010, K. KEALOHA used all the

remaining the funds in a Trust Account - over $55,000 - to pay off the
outstanding loan balance on ASB x5 3 83;
n.

On or about May 17, 2010, K. KEALOHA transferred $1,000

from a Trust Account to pay for L. KEALOHA and K. KEALOHA's personal
expenses;
o.

On or about July 12, 2010, K. KEALOHA transferred $2,440

from a Trust Account to pay for L. KEALOHA and K. KEALOHA's personal
expenses, including the cost of refinancing their home;
p.

On or about January 21, 2011, K. KEALOHA transferred $203

from a Trust Account to pay for overdraft charges on L. KEALOHA and
K. KEALOHA's personal bank account; and

8

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q.

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On or about January 4, 2012, K. KEALOHA used all the

remammg funds in a Trust Account - over $49,000 - to pay off the
outstanding loan balance on ASB x3126.
16.

On numerous occasions in 2011 and 2012, Attorney 1 .asked

K. KEALOHA about the status and disposition of the Trust Accounts.
K. KEALOHA provided false and misleading information to Attorney 1 about the
Trust Accounts, and concealed the fact that K. KEALOHA and L. KEALOHA had
misappropriated almost $150,000 from the Trust Accounts. For example:
a.

On August 2-3, 2011, K. KEALOHA sent emails to her alias,

"Alison Lee Wong," which she then forwarded to Attorney l's law firm, in
order to make it appear that K. KEALOHA was actively working towards
closing out R. T. and A. T. 's guardianships.
b.

On August 7, 2011, K. KEALOHA sent an email to Attorney l's

law firm claiming that "Alison" had "put together the final accounting [for
R. T. ]" and had called R. T. regarding signing the necessary documents to
finalize R. T. 's account.
c.

On or about September 26, 2011, K. KEALOHA sent an email

to Attorney l's law firm, claiming she "plan[ned] on meeting with Alison [Lee
Wong]" in several days to "go over the documents that [R.T.] dropped off."
d.

On or about October 26, 2011, using the alias "Alison Lee

Wong," K. KEALOHA sent a fraudulent email to Attorney l's law firm
9

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regarding closing out R.T. and A.T. 's guardianships, and falsely represented
that Alison Lee Wong was "making sure all necessary documents are signed."
Misappropriation of Funds from G.K.P.
17.

In or about January 2007, K. KEALOHA told a relative ("G.K.P") that

she had access to an investment club (or "hui") that would generate significant
monthly returns on any funds G.K.P. was able to invest.

Based on these

representations, G.K.P. decided to invest some of the savings he had gathered from
various sources, including his "disability" income.
18.

On or about February 22, 2007, G.K.P. gave K. KEALOHA $25,000 in

cash from his safety deposit box as an initial investment with her. Rather than
investing this money, K. KEALOHA deposited the cash into a bank account she
controlled, and used the funds to pay for personal expenses of L. KEALOHA and
K.KEALOHA.
19.

To give the false appearance of investment returns, K. KEALOHA

periodically withdrew $600 in cash from the bank account holding G.K.P.'s money
and paid the money to G.K.P. as a "return" on his investment. Later, K. KEALOHA
gave G .K.P. a debit card linked to the bank account that could be used to withdraw
between $100 and $800 per month as "returns" on G .K.P. 's investment.
20.

Because of the false appearance that K. KEALOHA was safeguarding

G.K.P. 's money and generating significant investment returns, G.K.P. gave more of
his cash savings to K. KEALOHA, including on November 13, 2008 ($15,000) and
10

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October 16, 2009 ($30,000). G.K.P. ultimately handed over approximately $70,000
of his savings to K. KEALOHA for safekeeping and investment, of which G.K.P.
received approximately $23,739 back as purported "investment returns." Instead of
investing the approximately $70,000, L. KEALOHA and K. KEALOHA used over
$45,000 of G.K.P. 's money to pay their personal expenses.
Misappropriating Loan Proceeds from F .P.
21.

In or about 2009, K. KEALOHA's grandmother ("F.P.") asked

K. KEALOHA about ways to purchase a condominium for her son, G.K.P. F.P.
wanted to help G.K.P. with such a purchase because he had cared for F.P. for many
years, and G.K.P. did not have sufficient credit to purchase such a property. In
response, K. KEALOHA recommended a five-step process: first, F.P. would secure
a "reverse mortgage" loan on her personal residence; second, F .P. would use a
portion of the loan proceeds to purchase the condominium and pay expenses for the
transaction; third, F .P. would use a portion of the proceeds to help L. KEALOHA
and K. KEALOHA "consolidate" their bills, thereby allowing them to improve their
credit; fourth, L. KEALOHA and K. KEALOHA would use their newly-improved
credit to purchase the condominium from F.P.; and fifth, L. KEALOHA and
K. KEALOHA would sell the condominium to G.K.P. by "taking back" a mortgage
so G.K.P. would make mortgage payments to them instead of to a bank. Based on
K. KEALOHA's representations, F.P. agreed to the plan and allowed K. KEALOHA

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to negotiate with a lender so that F .P. could withdraw equity in her house through a
reverse mortgage.
22.

In or about January 2009, K. KEALOHA requested that F.P. execute a

Durable Power of Attorney appointing K. KEALOHA as her attorney-in-fact for the
purpose of obtaining a reverse mortgage on F.P.'s property.
23.

In or about October 2009, K. KEALOHA caused a reverse mortgage to

be executed on F.P.'s property, and caused F.P. to borrow approximately $513,474
in net loan proceeds from MetLife Home Loans to be deposited into a BOH bank
account held jointly by K. KEALOHA and F.P ("BOH x1502"). A portion of these
funds was used to purchase the condominium for G.K.P., and the remainder
(approximately $128,236) was to be used to "consolidate" L. KEALOHA and

K. KEALOHA's debts and pay the expenses of F.P.
24.

Between October 2009 and April 2010, K. KEALOHA did not use the

BOH x1502 account to make payments on F.P.'s reverse mortgage; she instead
withdrew and transferred funds from BOH x1502 to pay the personal expenses of
L. KEALOHA and K. KEALOHA, including:
Expenses

Amount

Sheraton Waikiki- Police Chief Induction Brunch for L. KEALOHA
Car payments for Mercedes Benz & Maserati
HVAC installation at home of K. KEALOHA and L. KEALOHA
Payment to realtor
Insurance Payments
Travel Expenses
Donations to Charity
Elton John Concert Tickets

(26,394.80)
(10,663.58)
(7,800.00)
(7,000.00)
(5,846.00)
(3,596.12)
(3,000.00)
(2,161.70)

12

.

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Expenses

Amount

Hawaiian Telcom
ATM Withdrawals
Cashier's check payable to friend of K. KEALOHA
Invitation and Paper Design Store
Hawaiian Airlines
Halekulani Hotel
T-Mobile
Disneyland, Anaheim
Bank Fees
Shell Oil
Honolulu Police Relief (charity)
Kincaids (restaurant)
Macy's
Revolution Motor Sport
Apple Store
Kahala Hotel-Plumeria Restaurant
Calista by Cotton Cargo (woman's clothing)
The UPS Store
United Airlines
Dave & Busters
Sushi Sasabune (restaurant)
Hilo Hawaiian Hotel
Ross Store
Verizon Wireless
Got Gifts-Hilo
Arbonne International
Longs Drugs
Rainforest, Anaheim (restaurant)
Brighton Collectibles (jewelry)
Vendor Payments less than $250
TOTAL

(2,070.51)
(1,582.25)
(1,387.12)
(1,292.83)
(1,157.48)
(1,137.65)
(980.01)
(965.02)·
(917.80)
(900.00)
(875.25)
(721.63)
(713.54)
(690.05)
(642.15)
(454.12)
(452.84)
(693.54)
(386.00)
(347.51)
(341.75)
(331.65)
(328.45)
(320.76)
(305.94)
(296.14)
(281.31)
(279.68)
(276.93)
(4,762.98)
(92,355.09)

25.

By April 2011, K. KEALOHA had directed BOH to only mail monthly

statements for BOH x1502 to a Post Office Box she controlled, and had refused
G.K.P. 's requests for a return of his investment funds.

Additionally, because

K. KEALOHA was not making interest payments on F.P.'s reverse mortgage, the
outstanding balance of this loan had grown substantially.

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Count 1
Conspiracy (18 U.S.C. § 371)
26.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 25 of this Indictment.
27.

Beginning on a date unknown, but no later than 2011, and continuing

through 2017, within the District of Hawaii and elsewhere, defendants
KATHERINE P. KEALOHA (1), aka Katherine E. Kealoha, aka Kathy Kealoha,
aka Kat, aka Alison Lee Wong, LOUIS M. KEALOHA (2), DEREK WAYNE
HAHN (3), MINH-HUNG NGUYEN (4), aka Bobby Nguyen, and co-conspirator
Niall Silva (charged elsewhere), did knowingly and willfully combine, conspire, and
agree together, with each other and with others to commit the following offenses
against the United States:
a.

To willfully deprive, while acting under color of law, residents

of Honolulu, Hawaii, of the rights secured and protected by the Constitution
and laws of the United States to be free from unreasonable searches and
seizures, in violation of Title 18, United States Code, Section 242;
b.

To corruptly alter, destroy, and conceal a record, document and

other object with the intent to impair the object's integrity and availability for
use in an official proceeding, and to corruptly obstruct, influence, and impede
an official proceeding, in violation of Title 18, United States Code, Section
1512(c);
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c.

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To knowingly and willfully make a materially false, fictitious,

and fraudulent statement in a matter within the jurisdiction of the executive
branch of the Government of the United States, in violation of Title 18, United
States Code, Section 1001; and
d.

To knowingly alter and falsify records, documents and tangible

objects with the intent to impede, obstruct, and influence the investigation of
a matter within the jurisdiction of a department and agency of the United
States, in violation of Title 18, United States Code, Section 1519.
Manner and Means of the Conspiracy
28.

It was part of the conspiracy that L. KEALOHA and K. KEALOHA

would improperly use their authority as public officials to prevent the discovery and
disclosure of their precarious financial condition and prior malfeasance involving
the Trust Accounts, G.K.P., and F.P.
29.

It was further part of the conspiracy that the conspirators would target

members of the community who threatened the power and financial condition of
L. KEALOHA and K. KEALOHA, including G.K.P. and F.P.
30.

It was further part of the conspiracy that the conspirators would seek to

discredit and intimidate such persons, including G .K.P. and F .P ., by falsely alleging
that such persons had engaged in criminal activity or were incompetent.
31.

It was further part of the conspiracy that the conspirators would attempt

to secure evidence against such persons, including G .K.P. and F .P ., by misusing the
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resources of CIU, by executing unconstitutional searches and seizures, and by
abusing their official positions and law enforcement authority.
32.

It was further part of the conspiracy that the conspirators would

fabricate, alter, and conceal evidence in order to support false claims of criminal
conduct by G .K.P., and would seek to use such evidence to bring state and federal
charges against G .K.P.
33.

It was further part of the conspiracy that the conspirators would provide

fabricated evidence against G.K.P. to the USPIS and the USAO-Hawaii, and
encourage them to pursue federal criminal charges against G.K.P.
34.

It was further part of the conspiracy that the conspirators would present

false testimony and evidence in a criminal trial of G .K.P. in the USDC-Hawaii.
35.

It was further part of the conspiracy that, after a mistrial had been

declared and the charges against G .K.P. had been dismissed, the conspirators would
endeavor to obstruct the subsequent investigation by the FBI and a Federal grand
jury into the prosecution and trial of G.K.P.
Overt Acts
36.

In furtherance of the conspiracy, the conspirators committed the

following overt acts, among others, within the District of Hawaii and elsewhere:
a.

In or about June 2011, L. KEALOHA and K. KEALOHA caused

CIU officers to conduct physical surveillance of G.K.P ., and to continue such
surveillance from time to time through June 2013.
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b.

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On or about June 27, 2011, after G.K.P. had been arrested by

HPD for unlawfully entering another person's house, K. KEALOHA caused
MINH-HUNG NGUYEN and other HPD officers to unreasonably enter,
search, and seize items from G.K.P. 's house without a warrant or
authorization.
c.

On or about March 30, 2012, DEREK WAYNE HAHN and

MINH-HUNG NGUYEN arranged to file a police report and submit latent
fingerprints from an alleged burglary at L. KEALOHA and K. KEALOHA's
then personal residence.
d.

On or about March 30, 2012, DEREK WAYNE HAHN wrote an

HPD Incident Report that indicated MINH-HUNG NGUYEN was the
resident of the KEALOHAs' then personal residence (without mentioning the
property was owned by L. KEALOHA and K. KEALOHA) and falsely
reported that the alleged perpetrator had "disabled the surveillance system."
e.

On or about April 5, 2012, DEREK WAYNE HAHN submitted

to the HPD laboratory for examination a set of latent fingerprints he allegedly
recovered from the garage at the KEALOHAs' then personal residence.
f.

On or about the week of June 21, 2013, a conspirator altered the

mechanism securing the mailbox out front of L. KEALOHA and
K. KEALOHA's then personal residence, so that the mailbox could be easily
removed.
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g.

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On or about June 21, 2013, at about 11 :30 p.m., a conspirator

drove a car to the front of the KEALOHAs' then personal residence, walked
from the car to the mailbox in the front yard, lifted the unsecured mailbox
from its post, placed it in his car, and drove away.
h.

On or about June 22, 2013, prior to any official report to HPD of

the alleged theft, MINH-HUNG NGUYEN secretly removed the hard drive
from the video surveillance system at the KEALOHAs' then personal
residence and transported it to HPD headquarters.
1.

On or about June 22, 2013, at about 1:28 p.m., MINH-HUNG

NGUYEN spoke with K. KEALOHA on the telephone.

J.

Immediately thereafter, on or about June 22, 2013, at about 1:31

p.m., K. KEALOHA called 911 and falsely reported that the mailbox in front
of the KEALOHAs' then personal residence had been stolen.

k.

On or about June 22, 2013, after 1:31 p.m., K. KEALOHA

provided a handwritten statement on HPD Form 252, stating, in part, "[w]e
will be reviewing our security camera and will give that information to the
police when it becomes available"; K. KEALOHA did not reveal that the
surveillance video of the alleged mailbox theft had already been retrieved by
MINH-HUNG NGUYEN.

I.

On or about June 22, 2013, in the afternoon, MINH-HUNG

NGUYEN met co-conspirator Niall Silva at HPD headquarters to review the
18

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 19 of 42

PageID #: 130

video recording of the alleged mailbox theft at the KEALOHAs' then personal
residence ("the Video") that NGUYEN had removed.
m.

On or about June 22, 2013, MINH-HUNG NGUYEN falsely

identified G.K.P. as the person depicted on the Video allegedly stealing the
mailbox.
n.

On or about June 22, 2013, after 2:30 p.m., DEREK WAYNE

HAHN instructed Silva to violate HPD protocols and not log the original hard
drive Video into evidence, but instead to create compact discs with excerpts
of the Video.
o.

On or about June 22, 2013, following the orders given by

DEREK WAYNE HAHN, Silva created compact discs with excerpts of the
Video, gave copies of the excerpts to DEREK WAYNE HAHN, and placed
the original hard drive in his desk.
p.

On or about June 22, 2013, MINH-HUNG NGUYEN and Silva

drove in an HPD vehicle to G.K.P.'s residence and began surveillance.
q.

On or about June 22, 2013, between 7:10 p.m. and 8:01 p.m.,

K. KEALOHA and DEREK WAYNE HAHN exchanged approximately 30
text messages.
r.

On or about June 23, 2013, between 2:49 a.m. and 2:56 a.m.,

K. KEALOHA and DEREK WAYNE HAHN exchanged approximately 10
text messages.
19

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s.

PageID #: 131

On or about June 24, 2013, L. KEALOHA falsely identified

G.K.P. as the person depicted on the Video allegedly stealing the mailbox.
t.

On or about June 24, 2013, K. KEALOHA accused G.K.P. of

conunitting elder abuse and fraud against F.P., in an attempt to convince an
HPD lieutenant to investigate G.K.P. for those alleged crimes.
u.

On or about June 27, 2013, L. KEALOHA, K. KEALOHA, and

MINH-HUNG NGUYEN created a"false police report identifying G.K.P. as
the suspect of an alleged burglary at the KEALOHAs' then personal residence
on June 23 or 24, 2013.
v.

On or about Saturday, June 29, 2013, K. KEALOHA falsely

identified G.K.P. as the person in the Video allegedly stealing the mailbox.
w.

On or about June 29, 2013, L. KEALOHA and K. KEALOHA

caused HPD officers to falsely arrest G.K.P. for stealing their mailbox.
x.

On or about June 29, 2013, between 5:09 p.m. and 5:12 p.m.,

L. KEALOHA and DEREK WAYNE HAHN exchanged approximately three
phone calls.
y.

On or about July 1, 2013, when logging the Video excerpts into

HPD evidence, Silva created a false Follow Up Report claiming that he had
collected the original Video hard drive from the KEALOHAs' then personal
residence on June 22, 2013, at 8:59 a.m.

20

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 21 of 42

z.

PageID #: 132

On or about July 3, 2013, after G.K.P. was charged with

"willfully t[ earing] down a receptacle used for the receipt of mail on a mail
route," K. KEALOHA falsely told a USPIS Inspector that G.K.P. stole her
mailbox to obtain bank statements.
aa.

On or about July 5, 2013, MINH-HUNG NGUYEN falsely told

a USPIS Inspector that he had met Silva at the KEALOHAs' then personal
residence and witnessed Silva recovering the original Video hard drive on the
morning of June 22, 2013.
bb.

In November 2013, while the civil lawsuit involving

K. KEALOHA and G.K.P. remained ongoing, K. KEALOHA directed DPA
personnel to file an opposition to G.K.P. 's routine motion to dismiss his state
court deferred prosecution and to attempt to convince the state court to convert
G .K.P. 's deferred prosecution into a felony conviction.
cc.

Beginning on or about May 21, 2014 - after G.K.P.'s defense

attorney sought and obtained an order from the USDC-Hawaii permitting the
issuance of a subpoena duces tecum to K. KEALOHA and L. KEALOHA for
video surveillance footage from June 20, 2013, to the date of the alleged
mailbox theft - a conspirator caused the original hard drive containing video
evidence to be permanently altered by attaching a camera to the hard drive
and filming an image of CIU' s office ceiling for almost one week.

21

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dd.

PageID #: 133

On or about June 18, 2014, Silva falsely told a USPIS Inspector

that he personally recovered the hard drive from the KEALOHAs' residence.
ee.

On or about June 18, 2014, shortly after Silva had provided false

information to a USPIS Inspector, Silva called MINH-HUNG NGUYEN to
discuss the false evidence that the conspirators had previously agreed to
provide to authorities.
ff.

On or about June 19, 2014, Silva again provided a USPIS

Inspector with false information about the "investigation" into the alleged
mailbox theft.
gg.

In or about December 2014, K. KEALOHA filed a petition in

Hawaii state court to force F.P. into a conservatorship, alleging that due to
F.P. 's age she was not coµipetent to manage her finances and had been
"manipulated" and "co-opted" by G .K.P.
hh.

On or about December 1, 2014, MINH-HUNG NGUYEN and

Silva discussed the conspirators' plan to provide false testimony at the
upcoming federal criminal trial of G.K.P. in USDC-Hawaii.
11.

On or about December 4, 2014, Silva falsely testified in the trial

of G.K.P. in USDC-Hawaii that on June 22, 2013, at 8:59 a.m., he personally
went to the KEALOHAs' then personal residence, verified the security system
was in good working order on the date and time of the alleged theft, confirmed
that recordings were made, and retrieved the recordings from the residence.
22

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 23 of 42

JJ.

PageID #: 134

On or about December 4, 2014, at the trial of G.K.P. in USDC-

Hawaii, L. KEALOHA falsely identified G.K.P. as the person depicted on the
Video allegedly stealing the mailbox.
kk.

On or about December 4, 2014, MINH-HUNG NGUYEN texted

Silva about the false evidence provided in the federal criminal trial of G.K.P.
11.

On or about December 4, 2014, DEREK WAYNE HAHN spoke

with Silva, and communicated by text message with MINH-HUNG
NGUYEN, about the false evidence provided in the criminal trial of G.K.P.
mm. On or about November 19, 2015, at about 3:42 p.m., after being
contacted by the FBI about the investigation into G.K.P. 's criminal trial in
USDC-Hawaii, MINH-HUNG NGUYEN called Silva.
nn.

On or about November 24, 2015, MINH-HUNG NGUYEN

provided false and misleading information to the FBI about the alleged
mailbox theft from the KEALOHAs' then personal residence.
oo.

On or about April 21, 2016, defendant MINH-HUNG NGUYEN

falsely testified before the Federal grand jury that he was standing next to
Silva at the KEALOHAs' then residence when the original hard drive
containing the Video was retrieved, and falsely claimed that G.K.P. was the
person depicted in the Video.
pp.

On or about May 19, 2016, MINH-HUNG NGUYEN falsely

testified before the Federal grand jury that he did not recall his repeated
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PageID #: 135

communications with Silva about the false information they were provided to
USPIS and in G.K.P.'s criminal trial in USDC-Hawaii.
All in violation of Title 18, United States Code, Section 371.
Counts 2-6
Obstruction of Official Proceeding (18 U.S.C. § 1512(c)(2))
3 7.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 t~ough 25 of this Indictment.
38.

Between November 19, 2015, and the date of this Indictment, a federal

grand jury was conducting a proceeding to determine whether violations of federal
law had been committed in connection with the investigation, prosecution, and
aftermath of United States v. G.K.P.
39.

On or about the dates set forth below, in the District of Hawaii, the

defendants identified below did corruptly attempt to obstruct, influence, and impede
the official proceedings identified below by providing false and misleading
statements and information about the purported investigation of G .K.P. and the
alleged theft of a mailbox from the KEALOHAs' then personal residence:
Count Date
December
2
4,2014

Act
KATHERINE KEALOHA (1 ), LOUIS M. KEALOHA (2)
testified falsely in the criminal
LOUIS M. KEALOHA (2),
DEREK WAYNE HAHN (3), trial of G.K.P. in USDC-Hawaii
that the person depicted in the
and
Video was G.K.P.
MINH-HUNG NGUYEN (4)
Defendant

24

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 25 of 42

Defendant
Count Date
January 7, GORDON SHIRAISHI (5)
3
2016

DANIEL SELLERS (6)

4

February
25,2016

5

April
2016

21, KATHERINE KEALOHA (1 ),
LOUIS M. KEALOHA (2),
DEREK WAYNE HAHN (3),
and
MINH-HUNG NGUYEN (4)

6

May
2016

19, KATHERINEKEALOHA(l),
LOUIS M. KEALOHA (2),
DEREK WAYNE HAHN (3),
and
MINH-HUNG NGUYEN (4)

PageID #: 136

Act
Testified falsely before the
grand jury that on the morning
of June 22, 2013, he received a
phone call from L. KEALOHA
about the KEALOHAs' missing
mailbox, and then he called
HAHN and directed him to send
a CIU technician to the
KEALOHAs' then personal
residence and recover the hard
video
the
from
drive
surveillance system
Testified m a false and
misleading manner before the
denying
by
grand Jury
involvement in any searches of
G.K.P. 's home in 2011.
MINH-HUNG NGUYEN (4)
testified falsely before the grand
jury that he was standing next to
Silva at the KEALOHAs' then
personal residence when the
original hard drive containing
the Video was retrieved from
the residence, and claimed that
G.K.P. was the person depicted
in the Video
MINH-HUNG NGUYEN (4)
testified m a false and
misleading manner before the
grand jury by stating that he did
not recall communicating with
false
the
about
Silva
were
they
information
providing to USPIS and in
G.K.P. 's criminal trial

All in violation of Title 18, United States Code, Section 1512(c)(2).

25

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 26 of 42

PageID #: 137

Counts 7-8
False Statements to Federal Officer (18 U.S.C. § 1001)
40.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 25 of this Indictment.
41.

Between June 30, 2013, and December 2014, USPIS had a criminal

investigation into the alleged theft of a mailbox from the KEALOHAs' then personal
residence. Between December 2014, and the date of this Indictment, the FB~ had a
criminal investigation into whether violations of federal law occurred in the prior
investigation and prosecution of G.K.P.

It was material to both the USP IS

investigation and the FBI investigation to determine what steps had been taken by
HPD to investigate the alleged crime, what evidence had been collected, and whether
the witnesses could credibly testify about relevant facts.
42.

On or about the dates set forth below, in the District of Hawaii, the

defendants identified below did willfully and knowingly make the following false,
fictitious and fraudulent statements in a matter within the jurisdiction of the
executive branch of the United States:

26

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 27 of 42

False Statement and Federal
Agency
5, KATHERINE KEALOHA (1), MINH-HUNG NGUYEN (4)
July
falsely told USPIS Inspector B.
LOUIS M. KEALOHA (2),
2013
DEREK WAYNE HAHN (3), Shaughnessy that Niall Silva had
recovered the original Video
and
hard
drive
from
the
MINH-HUNG NGUYEN (4)
KEALOHAs' then personal
residence in the morning on June
22, and that NGUYEN had met
Silva at the KEALOHAs'
residence on June 22
Falsely told the FBI that he was
January
DANIEL SELLERS (6)
not at HPD viewing the Video on
11,2017
June 22, 2013.

Count Date
7

8

PageID #: 138

Defendant

All in violation of Title 18, United States Code, Section 1001.
Count 9
Bank Fraud (18 U.S.C. § 1344)
43.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 3, and 12 through 16, of this Indictment.
44.

Beginning no later than December 2007, and continuing through

January 2012, within the District of Hawaii, defendants KATHERINE P.
KEALOHA, aka Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison Lee
Wong, and LOUIS M. KEALOHA knowingly devised, with the intent to defraud, a
material scheme to defraud ASB and to obtain money and funds owned by and under
the custody and control of ASB by means of materially false and fraudulent
pretenses, representations and promises.

27

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 28 of 42

45.

PageID #: 139

It was part of the scheme that K. KEALOHA would apply to ASB for

a "Savings Secured Loan" in the amount of $50,000 by fraudulently pledging as
collateral the Trust Account owned by R.T.
46.

It was further part of the scheme that K. KEALOHA would falsely

represent to ASB that the loan proceeds would be used for "home
improvement/tuition."
47.

It was further part of the scheme that K. KEALOHA and L. KEALOHA

would use ASB 's loan proceeds to pay for expenses other than the home
improvement and tuition needs ofR.T.
48.

It was further part of the scheme that when the Savings Secured Loan

came due, K. KEALOHA would cause R.T.'s Trust Account to be liquidated and
$49,580.99 of R.T. 's money to be used to repay ASB for K. KEALOHA's loan.
Execution of the Scheme
49.

On or about January 4, 2008, within the District of Hawaii,

L. KEALOHA and K. KEALOHA knowingly executed the scheme by falsely
certifying to ASB that K. KEALOHA owned the funds in the Trust Account and was
authorized to pledge the Trust Account as collateral for the loan.
All in violation of Title 18, United States Code, Section 1344(1) and (2).

28

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PageID #: 140

Count 10
Bank Fraud (18 U.S.C. § 1344)
50.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 3, and 12 through 16, of this Indictment.
51.

Beginning no later than March 2009, and continuing through March

2010, within the District of Hawaii, defendants KATHERINE P. KEALOHA, aka
Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison Lee Wong, and
LOUIS M. KEALOHA knowingly devised, with the intent to defraud, a material
scheme to defraud ASB and to obtain money and funds owned by and under the
custody and control of ASB by means of materially false and fraudulent pretenses,
representations and promises.
52.

It was part of the scheme that K. KEALOHA would apply to ASB for

a "Savings Secured Loan" in the amount of $55,082.22 by fraudulently pledging as
collateral the Trust Account owned by A. T.
53.

It was further part of the scheme that K. KEALOHA would falsely

represent to ASB that the loan proceeds would be used for "kid[']s expenses."
54.

It was further part of the scheme that K. KEALOHA and L. KEALOHA

would use ASB 's loan proceeds to pay for expenses other than those incurred for the
benefit of A. T ., including the repayment of an earlier Savings Secured Loan that
K. KEALOHA had procured using A.T. 's Trust Account.

29

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 30 of 42

55.

PageID #: 141

It was further part of the scheme that K.KEALOHA would transfer

$12,000 from this Savings Secured Loan into another bank account, and would use
those funds to pay for the personal expenses ofK. KEALOHA and L. KEALOHA,
including an $8,000 credit card payment, a $6,24 7. 77 mortgage payment, private
school tuition payment for their child, property taxes and other real estate expenses.
56.

It was further part of the scheme that when the Savings Secured Loan

came due, K. KEALOHA would cause A.T.'s Trust Account to be liquidated and
$55,194.20 of A.T. 's money to be used to repay ASB for K. KEALOHA's loan.
Execution of the Scheme
57.

On or about March 19, 2009, within the District of Hawaii, L.

KEALOHA and K. KEALOHA knowingly executed the scheme by falsely
certifying to ASB that K. KEALOHA owned the funds in the Trust Account and was
authorized to pledge the Trust Account as collateral for the loan.
All in violation of Title 18, United States Code, Section 1344(1) and (2).
Count 11
Bank Fraud (18 U.S.C. § 1344)
58.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 3, and 12 through 16, of this Indictment.
59.

Beginning no later than March 2010, and continuing through July 2010,

within the District of Hawaii, defendants KATHERINE P. KEALOHA, aka
Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison Lee Wong, and
30

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PageID #: 142

LOUIS M. KEALOHA knowingly devised, with the intent to defraud, a material
scheme to defraud HUSAFCU and to obtain money and funds owned by and under
the custody and control of HUSAFCU by means of materially false and fraudulent
pretenses, representations and promises.
60.

It was part of the scheme that L. KEALOHA and K. KEALOHA would

apply to HUSAFCU for a first loan in the amount of $1, 100,000 to refinance their
mortgage on their then personal residence, and falsely certify that the information
provided in support of their application was true and correct.
61.

It was further part of the scheme that on or about March 31, 2010,

L. KEALOHA and K. KEALOHA would sign and submit to HUSAFCU a loan
application falsely claiming the two Trust Accounts as their own assets.
62.

It was further part of the scheme that L. KEALOHA and K. KEALOHA

would submit a letter dated March 12, 2010, falsely denying certain derogatory items
on their credit report.
63.

It was further part of the scheme that K. KEALOHA would submit a

letter of explanation in June 2010, providing false material statements about the
credit history ofL. KEALOHA and K. KEALOHA
64.

It was further part of the scheme that in or about June 2010, K.

KEALOHA altered monthly statements for one of the Trust Accounts to make it
appear that she owned the accounts, and forwarded those altered documents to
HUSAFCU to support the loan application.
31

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 32 of 42

65.

PageID #: 143

On or about July 6, 2010, usmg the alias Alison Lee Wong,

K. KEALOHA sent a fabricated email to herself at a different email address, and
forwarded that email to her mortgage broker, in order to make it appear that
derogatory credit associated with K. KEALOHA was erroneous, and that
KEALOHA's assistant, "Alison Lee Wong," was attempting to correct such errors.
Execution of the Scheme
66.

On or about July 9, 2010, within the District of Hawaii, L. KEALOHA

and K. KEALOHA knowingly executed the scheme by falsely certifying in a Form
1003 loan application that they personally owned the assets in one of the Trust
Accounts, when in fact K. KEALOHA was merely a trustee on the Trust Account
and the true owner was R.T.
All in violation of Title 18, United States Code, Section 1344(1) and (2).
Count 12
Bank Fraud (18 U.S.C. § 1344)
67.

The grand jury realleges and incorporates by reference Introductory

Allegations 1through3, and 12 through 16, of this Indictment.
68.

Beginning no later than June 2012, and continuing through July 24,

2012, within the District of Hawaii, defendants KATHERINE P. KEALOHA, aka
Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison Lee Wong, and
LOUIS M. KEALOHA knowingly devised, with the intent to defraud, a material
scheme to defraud HCFCU and to obtain money and funds owned by and under the
32

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PageID #: 144

custody and control of HCFCU by means of materially false and fraudulent
pretenses, representations and promises.
69.

It was part of the scheme that L. KEALOHA and K. KEALOHA would

apply to HCFCU for a second mortgage on their then personal residence in the
amount of $150,000, and falsely certify that the information provided in support of
their application was true and correct.
70.

It was further part of the scheme that in or about June 2012,

K. KEALOHA would submit a forged "Hawaii Residential Lease Agreement" to
HCFCU to give the false impression that L. KEAHLOA and K. KEALOHA received
rental income every month.
Execution of the Scheme
71.

On or about July 24, 2012, within the District of Hawaii,

K. KEALOHA and L. KEALOHA knowingly executed the scheme by falsely
certifying in a Form 1003 loan application that they received over $2,700 per month
in rental income from MINH-HUNG NGUYEN (4) and K. KEALOHA's niece,
when in fact no such lease agreement existed and the defendants did not receive rent
or lease payments.
All in violation of Title 18, United States Code, Section 1344(1) and (2).

33

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 34 of 42

PageID #: 145

Count 13
Bank Fraud (18 U.S.C. § 1344)
72.

The grand jury realleges and incorporates by reference Introductory

Allegations 1through3, and 12 through 16, of this Indictment.
73.

In or about March 2013, within the District of Hawaii, defendants

KATHERINE P. KEALOHA, aka Katherine E. Kealoha, aka Kathy Kealoha, aka
Kat, aka Alison Lee Wong, and LOUIS M. KEALOHA knowingly devised, with the
intent to defraud, a material scheme to defraud HCFCU and to obtain money and
funds owned by and under the custody and control of HCFCU by means of
materially false and fraudulent pretenses, representations and promises.
74.

It was part of the scheme that L. KEALOHA and K. KEALOHA would

apply to HCFCU for a home equity line of credit on their then personal residence in
the amount of $180,000, and falsely certify that the information provided in support
of their application was true and correct.
75.

It was further part of the scheme that L. KEALOHA and

K. KEALOHA would sign a Form 1003 loan application in support of the loan
application.
76.

It was further part of the scheme that in or about June 2012,

K. KEALOHA would submit a forged "Hawaii Residential Lease Agreement" to
HCFCU to give the false impression that L. KEAHLOA and K. KEALOHA received
rental income every month from MINH-HUNG NGUYEN (4) and K. KEALOHA's
34

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 35 of 42

PageID #: 146

niece, when in fact no such lease agreement existed and the defendants did not
receive rent or lease payments.
77.

It was further part of the scheme that L. KEALOHA and K. KEALOHA

would falsely claim to HCFCU that derogatory information on their credit reports
did not belong to them, and would provide false explanations for why derogatory
items appeared on their credit reports.
Execution of the Scheme
78.

In or about March 2013, within the District of Hawaii, K. KEALOHA

and L. KEALOHA knowingly executed the scheme by submitting a forged HPD
police report, purportedly signed by HPD officer C.P.M. on March 30, 2009, and
claiming that the defendants were the victims of identity theft, in an attempt to
explain derogatory information on their credit reports.
All in violation of Title 18, United States Code, Section 1344(1) and (2).
Count 14
Bank Fraud (18 U.S.C. § 1344)
79.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 3, and 12 through 16, of this Indictment.
80.

Beginning in or about June 2013, and continuing until August 30, 2013,

within the District of Hawaii, defendants KATHERINE P. KEALOHA, aka
Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison Lee Wong, and
LOUIS M. KEALOHA knowingly devised, with the intent to defraud, a material
35

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 36 of 42

PageID #: 147

scheme to defraud HCFCU and to obtain money and funds owned by and under the
custody and control of HCFCU by means of materially false and fraudulent
pretenses, representations and promises.
81.

It was part of the scheme that L. KEALOHA and K. KEALOHA would

apply to HCFCU for a $980,000 mortgage loan to purchase a home, and falsely
certify that the information provided in support of their application was true and
~orrect.

82.

It was further part of the scheme that L. KEALOHA and K. KEALOHA

would submit to HCFCU letters of explanation dated March 12, 2010, and July 12,
2012, falsely representing that certain derogatory credit did not belong to them.
Execution of the Scheme
83.

In or about August 2013, within the District of Hawaii, K. KEALOHA

and L. KEALOHA knowingly executed the scheme by submitting a forged HPD
police report, purportedly signed by HPD officer C.P.M. on March 30, 2009, and
claiming that the defendants were the victims of identity theft, in an attempt to
explain derogatory information on their credit reports.
All in violation of Title 18, United States Code, Section 1344(1) and (2).
Count 15
Bank Fraud (18 U.S.C. § 1344)
84.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 3, and 12 through 16, of this Indictment.
36

 Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 37 of 42

85.

PageID #: 148

Beginning in or about May 2014, and continuing until July 11, 2014,

within the District of Hawaii, defendants KATHERINE P. KEALOHA, aka
Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison Lee Wong, and
LOUIS M. KEALOHA knowingly devised, with the intent to defraud, a material
scheme to defraud HCFCU and to obtain money and funds owned by and under the
custody and control of HCFCU by means of materially false and fraudulent
pretenses, representations and promises.
86.

It was part of the scheme that L. KEALOHA and K. KEALOHA would

apply to HCFCU for a $90,000 home equity loan for "debt consolidation,'; and
falsely certify that the information provided in support of their application was true
and correct.
87.

It was further part of the scheme that L. KEALOHA and K. KEALOHA

would submit to HCFCU a letter of explanation dated July 12, 2012, falsely
representing that certain derogatory credits accounts did not belong to them.
Execution of the Scheme
88.

In or about July 2014, within the District of Hawaii, K. KEALOHA and

L. KEALOHA knowingly executed the· scheme by submitting a forged HPD police
report, purportedly signed by HPD officer C.P.M. on March 30, 2009, and claiming
that the defendants were the victims of identity theft, in an attempt to explain
derogatory information on their credit reports.
All in violation of Title 18, United States Code, Section 1344(1) and (2).
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PageID #: 149

Count 16
Bank Fraud (18 U.S.C. § 1344)
89.

The grand jury realleges and incorporates by reference Introductory

Allegations 1through3, and 12 through 16, of this Indictment.
90.

Beginning in or about June 2016, and continuing until September 12,

2016, within the District of Hawaii, defendants KATHERINE P. KEALOHA, aka
Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison Lee Wong, and
LOUIS M. KEALOHA knowingly devised, with the intent to defraud, a material
scheme to defraud HCFCU and to obtain money and funds owned by and under the
custody and control of HCFCU by means of materially false and fraudulent
pretenses, representations and promises.
91.

It was part of the scheme that L. KEALOHA and K. KEALOHA would

apply to HCFCU for a $1,040,000 refinancing of their mortgage and "cash out" of
approximately $32,000, and a $172,500 home equity line on an investment property.
92.

It was further part of the scheme that K. KEALOHA would sign and

provide a letter of explanation, dated August 5, 2016, falsely claiming that different
handwriting appeared in the loan application because K. KEALOHA had "serious
health issues which have affected [her] vision and handwriting."
93.

It was further part of the scheme that L. KEALOHA and K. KEALOHA

would submit a forged HPD police report, purportedly signed by HPD officer C.P .M.

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Document 17 Filed 10/19/17 Page 39 of 42

PageID #: 150

on March 30, 2009, in an attempt to claim that the defendants were the victims of
identity theft and explain away their poor credit history.
Execution of Scheme
94.

In or about July 2016, within the District of Hawaii, K. KEALOHA and

L. KEALOHA knowingly executed the scheme by submitting a letter of explanation
that falsely denied certain derogatory items on their credit report, and falsely
disavowed certain credit accounts that belonged to them.
All in violation of Title 18, United States Code, Section 1344(1) and (2).
Counts 17-20
Aggravated Identity Theft (18 U.S.C. § 1028A)
95.

The grand jury realleges and incorporates by reference Introductory

Allegations 1 through 3, and 12 through 16, of this Indictment.
96.

On or about the dates set forth below, within the District of Hawaii,

defendant KATHERINE P. KEALOHA (1), aka Katherine E. Kealoha, aka Kathy
Kealoha, aka Kat, aka Alison Lee Wong, did knowingly use without lawful authority
a means of identification of another person during and in relation to a felony
violation enumerated in 18 U.S.C. § 1028A(c)- that is, Bank Fraud in violation of
Title 18, United States Code, Section 1344 - knowing that the means of
identification belonged to another actual person:

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 J

..

,

Case 1:17-cr-00582-JMS Document 17 Filed 10/19/17 Page 40 of 42

...

PageID #: 151

Count

Date

Means of Identification

Felony Violation Alleged In

17

March2013

Signature of C.P .M.

Count 13

18

August 2013 Signature of C.P .M.

Count14

19

July 2014

Signature of C.P.M.

Count 15

20

July 2016

Signature of C.P .M.

Count 16

All in violation of Title 18, United States Code, Section 1028A.
Forfeiture Allegations
97.

The allegations contained in paragraphs 1 through 25 of the

Introductory Allegations, and Counts 1 through 20 of this Indictment, are realleged
and incorporated by reference for the purpose of alleging forfeiture to the United
States pursuant to Title 18, United States Code, Section 982(a)(2)(A).
98.

Upon conviction of the offenses in violation of Title 18, United States

Code, Section 1344, set forth in Counts 9 through 16 of this Indictment, defendants
KATHERINE P. KEALOHA, aka Katherine E. Kealoha, aka Kathy Kealoha, aka
Kat, aka Alison Lee Wong, and LOUIS M. KEALOHA shall forfeit to the United
States of America, pursuant to Title 18, United States Code, Section 982(a)(2)(A),
any property constituting, or derived from, proceeds obtained, directly or indirectly,
as a result of such violations. The property to be forfeited includes, but is not limited
to, the following:

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 ..Case 1:17-cr-00582-JMS
a.

Document 17 Filed 10/19/17 Page 41 of 42

PageID #: 152

The total amount of proceeds obtained directly or indirectly as a

result of the offenses;
b.

All of that certain parcel of land situated at Maunalua, Honolulu,

City and County of Honolulu, State of Hawaii, being LOT 84 of the "LUNAKAI MARINA, UNIT 9-A," as shown on File Plan.No. 1116, filed in the
Bureau of Conveyances of the State of Hawaii, and containing an area of
7,508 square feet, more or less; and
c.

A Rolex Two-Tone Submariner Watch with Blue Dial Large

Karat Gold, Serial Number V864527.
99.

If any of the property described above, as a result of any act or omission

of the defendants (a) cannot be located upon the exercise of due diligence; (b) has
been transferred or sold to, or deposited with, a third party; (c) has been placed
beyond the jurisdiction of the court; (d) has been substantially diminished in value;
or (e) has been commingled with other property which cannot be divided without
difficulty, the United States of America shall be entitled to forfeiture of substitute
property pursuant to Title 21, United States Code, Section 853(p), as incorporated
II
II
II
II
II
II·

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-

PageID #: 153

by Title 18, United States Code, Section 982(b)(l) and Title 28, United States Code,
Section 246 l (c).
All pursuant to 18 U.S.C. § 982(a)(2)(A) and 28 U.S.C. § 2461(c).
Dated: Honolulu, Hawaii, October 19, 2017
A TRUE BILL

Isl Foreperson
FOREPERSON, GRAND JURY
JEFFERSON B. SESSIONS III
United States Atto1ney General

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