Posted on 06/27/2019 11:56:38 PM PDT by Jyotishi
Katherine and Louis Kealoha found guilty of conspiracy, obstruction of justice
HONOLULU, Hawaii (HawaiiNewsNow) - After deliberating for less than nine hours, a jury of seven men and five women found former law enforcement power couple Louis and Katherine Kealoha guilty Thursday of conspiracy and other counts in one of Hawaii's most closely-watched public corruption trials.
After hearing the verdict, the Kealohas left the federal courthouse stone-faced.
Katherine Kealoha, walking ahead of her husband, and her attorneys declined comment. Louis Katherine, appearing stunned at his incredible turn of fortunes, told reporters: "There's still a lot to take in. I just wanted to thank the community for their continued help and support."
The verdict came in about 4:40 p.m. Thursday, shocking prosecutors, the five co-defendants and members of the defense team, all of whom rushed to the federal courthouse to hear it read out.
Kealoha's leave federal court following guilty verdict
The jury found both of the Kealohas guilty of five of the six counts against them: Conspiracy and four counts of attempted obstruction; they were found not guilty of making false statements.
Katherine Kealoha, a former deputy city prosecutor, was found guilty for a leading role in the scheme to frame her uncle with the theft of her mailbox in a bid to discredit him in an ongoing financial dispute.
Ex-Police Chief Louis Kealoha's major role was lying at the federal trial of his wife's uncle, and forming the elite criminal intelligence unit in which several officers were involved in the mailbox conspiracy.
After the verdict was read, the government moved to remand Katherine Kealoha, which means she could be held in custody ahead of sentencing in October.
A hearing on the issue is set for 10 a.m. Friday.
Jurors leave federal court following Kealoha verdict
Two Honolulu police officers were also found guilty in the case. Officers Derek Hahn and Bobby Nguyen, who were found guilty of conspiracy and attempted obstruction of an official proceeding, left the courtroom without say a word.
One former officer ? retired Maj. Gordon Shiraishi ? was the lone defendant found not guilty in the case.
It's not clear how much time the Kealohas face behind bars, but the obstruction charge alone carries a 20-year maximum sentence.
The sentences will most likely run concurrently, but in the federal system there is no parole.
'An innocent man was framed'
Ali Silvert, the federal defense attorney for Gerard Puana and another victim in the case, Puana's 99-year-old mother Florence, called the verdict "fair and just."
"An innocent man was framed and went to jail for doing nothing more than trying to speak up," Silvert said. "We're all very surprised the jury reached a verdict this quickly. This really sends a strong message to law enforcement."
In a statement Thursday, Police Chief Susan Ballard agreed. She said those involved in the conspiracy "hurt both the community and the department."
"But the men and women of the HPD have been working hard this past year and a half to restore HPD's reputation and the public's trust. We are moving forward and are committed to making sure that Honolulu continues to be one of the safest cities in the nation," she said.
Honolulu Mayor Kirk Caldwell issued a single-sentence statement in response to the verdict: "The jury has reached a verdict and I respect the process and their decision. It's time to move on."
Honolulu's Chief of Police, Susan Ballard, issued the following statement after former police chief Louis Kealoha was found guilty on Thursday. https://t.co/TqYEeNgRRf pic.twitter.com/Zr8wrMmYl9
-- Hawaii News Now (@HawaiiNewsNow) June 28, 2019
A federal case years in the making
The "mailbox trial" got underway in late May and continued for 18 days.
The case revolved around the reported theft six years ago of the Kealohas' mailbox at their former Kahala home. The Kealohas pointed the finger for the federal crime at a relative.
Prosecutors said Katherine Kealoha sought to frame her uncle, Gerard Puana, with the theft in a bid to discredit him amid a family dispute over money she's alleged to have taken from them.
[CONTINUING COVERAGE: The Case Against the Kealohas]
https://www.hawaiinewsnow.com/news/investigate/kealohas/
At the time of the conspiracy, Kealoha was a high-ranking deputy city prosecutor and Louis Kealoha headed up the Honolulu Police Department.
The three former or current officers in the case were part of a secretive police unit.
Kealohas' face more charges
Remarkably, this is only the first of three potential trials for Katherine Kealoha and the first of two for her husband.
They are both also charged with bank fraud for lying to banks to get mortgages and other loans. Katherine Kealoha is also charged with her doctor brother ? Rudy Puana ? in a drug conspiracy case.
Those trials are scheduled for later this year.
Ali Silvert, the attorney for Gerard and Florence Puana, speaks to the media after Louis and Katherine Kealoha were found guilty on Thursday. https://t.co/TqYEeNgRRf pic.twitter.com/BByHQEMoDn
-- Hawaii News Now (@HawaiiNewsNow) June 28, 2019
In closing statements in the "mailbox trial," prosecutors said the case was never really about a mailbox but about why the five co-defendants would try to frame Gerard Puana with its theft.
They argued that the facts of the case showed how the Kealohas used their positions to exact retribution against their enemies, and how the three officers participated in the conspiracy.
"The motives in this case are greed, to maintain prestige and power. The chief of police and a prosecutor," said Prosecutor Joseph Orabona, in closing arguments.
Defense attorneys, meanwhile, argued that the government's case was based on supposition and circumstantial evidence.
Rustam Barbee, who represents ex-Police Chief Louis Kealoha, sought to convince jurors in his closing arguments that the government hadn't proven the allegations beyond a reasonable doubt,
"This theory about a frame job has no evidence," he said. "It's a far-fetched conspiracy theory that's very strange, bizarre, complicated, doesn't make any sense."
Dozens of witnesses took the stand
The FBI investigation in the case began in early 2014.
A year later, the Justice Department brought in San Diego Deputy U.S. Attorney Michael Wheat, an expert in civil rights and corruption cases, to begin the grand jury investigation.
Even without charges, the slowly-evolving scandal forced the police commission to pay off Louis Kealoha, giving him $250,000 to retire early.
One stipulation of that payout: Kealoha was told he'd have to return the money if he was convicted of a felony, as he was Thursday.
Katherine Kealoha, Louis Kealoha, Derek Hahn and Bobby Nguyen have been found guilty of conspiracy in a federal corruption case. pic.twitter.com/60xhmAY3EH
-- Hawaii News Now (@HawaiiNewsNow) June 28, 2019
Katherine Kealoha went on leave when they were indicted in October 2017.
Meanwhile, two other officers implicated in the case ? Niall Silva and Danny Sellers ? pleaded guilty and became witnesses.
In all, 70 people took the stand in the Kealoha "mailbox trial." The breakdown: 58 for the government, 12 for the defense, with three testifying more than once.
Mahalo for posting this. Good insight into behind the scenes of Honolulu.
Book Dano!
This is like a fractal of the larger FBI coup attempt. People in power abusing that power for three own gain.
“Book Dano!”
Huh?,. Maybe.. Book’em Danno
No, I think in this case, Dano’s getting booked
Typical corrupt criminal politicians. Move along. Nothing new to see here... How pathetic.
In before the Hawaii bashers!
"The jury has reached a verdict and I respect the process and their decision. It's time to move on."
That's two sentences.
Those are two sentences. :)
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