Among other things, they both admitted to spending more than $591,000 between January 2009 and December 2014 on their extravagant lifestyle, which, according to oral arguments, was supported by stolen funds. The two Kealohas admitted in oral arguments that they had defrauded banks with sophisticated systems to obtain loans to finance their extravagant lifestyle. Louis Kealoha`s argument stated that the couple spent more than $591,000 from the following funds: (1) the stolen proceeds of a reverse mortgage received by Florence Puana; (2) funds stolen from Taito children; and (3) loan income from banks and credit unions. In his plea, Louis Kealoha agreed that the court order him to pay 165,269.82 $US to the Taitos and to pay 63,476.97 $US of the sale of the Kealohas` house. Katherine Kealoha is going to district court in late June for a hearing. According to her lawyer, she signed a plea on Sunday for other charges. Little has been heard of Katherine Kealoha since she entered into a plea deal with federal lawyers that avoided another trial, this time for conspiracy to illegally distribute prescription drugs, funeral of her brother`s role in drug conspiracy and financial fraud. Barbee said Friday that there was a “proposed agreement” but that there was “no contract until it was signed.” As part of the oral argument, Katherine Kealoha agreed to participate in the ongoing federal investigation, her lawyer said. Katherine Kealoha also pleaded one count of aggravated impersonation and “failure” to report a crime to federal authorities. The guilty pleas are a surprising reversal of the fate of the former law enforcement power couple who, over several years of federal investigation, have repeatedly claimed that they were wrongly charged. In a separate plea with the federal government, the Kealohas pleaded guilty on Tuesday to making a single count of bank fraud.
In accordance with the plea provisions, the Kealohas waive their right to appeal their convictions and sentences handed down by Seabright. By pleading guilty, the Kealohas are waiving two trials scheduled for 2020. Hours later, her husband, Louis Kealoha, pleaded guilty to bank fraud. The memo goes through criminal guidelines, including aggravating factors that are considered for things like “abuse of the position of trust” and “impediment to the administration of justice.” None of these factors appear to be associated with the question of whether she provided “substantial assistance” as a result of her oral arguments.