New indictment: Ex-police chief’s wife blamed discrepancies on health issue

Updated: May. 24, 2018 at 3:42 PM HST
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HONOLULU (HawaiiNewsNow) - A second superseding indictment against Honolulu's ex-police chief and his deputy prosecutor wife offers new details on the bank fraud, aggravated identity theft and obstruction charges against them.

The 24-page filing, for example, alleges that Katherine Kealoha used funds from trust accounts for two children she was the guardian for to pay off mortgages, loans and other expenses.

The filings also allege that Kealoha forged official documents but blamed the mismatched signatures on a serious health issue that "affected (her) vision and handwriting."

Louis and Katherine Kealoha were first indicted in October. That sweeping, 20-count indictment, which rocked Honolulu's law enforcement community, charged the Kealohas and four current and former Honolulu police officers with the financial crimes and charging related to the alleged frame up of a Kealoha relative. Chief Judge John Michael Seabright ruled that the cases should be separated into two trials: The financial fraud case against the Kealohas and the conspiracy case against the Kealohas and the police officers.

And it doesn't appear to be over yet, even with this latest superseding indictment.

Hawaii News Now cameras caught former Honolulu Police homicide Lt. Wally Calistro going in to testify before the ongoing grand jury proceedings.

The Kealohas are out on bond pending their trial, but will have to appear on the new, superseding indictment.

If convicted, the indictment says the couple's Hawaii Kai home and a Rolex Two-Tone Submariner Watch will be forfeited.

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