Kealohas close to reaching a plea deal for remaining federal charges

Kealohas close to reaching a plea deal for remaining federal charges

HONOLULU, Hawaii (HawaiiNewsNow) - The Kealohas are reportedly close to making a plea deal with federal prosecutors on financial fraud and other charges.

Attorneys for Louis and Katherine Kealoha spent the day negotiating with the government on a proposed deal.

Katherine Kealoha is reportedly “sleeping on it” and a decision could come down before the end of the week.

The ex-deputy prosecutor and her husband, Honolulu’s former police chief, would have to plead guilty to financial crimes under the deal.

Their trial for those crimes is scheduled for January.

Katherine Kealoha would also have to plead guilty to alleged drug crimes to avoid her third trial in May.

The benefit for the Kealohas of a plea deal: The government would recommend lighter sentences to the judge.

The government, meanwhile, might get cooperation, “They believe she can provide information in ongoing investigation,” said Earle Partington, attorney for Katherine Kealoha, declined to say what that would entail but indicated it was city administrators.

The negotiations for a plea deal have been going on for weeks.

Partington confirms there are just a few remaining sticking points that deal with the civil trial over money that Katherine Kealoha was accused of stealing from her elderly grandmother.

The government wants Kealoha to pay restitution to Florence Puana, but she wants prosecutors to guarantee she won’t then be charged with perjury for allegedly lying on the stand in that civil trial.

News of the plea deal comes as the two await sentencing later this month on federal convictions of obstruction and conspiracy.

The Kealohas were convicted in a massive public corruption case in June. Louis Kealoha is facing nine to 11 years in prison while his wife, who is being held behind bars, is facing 11 to 14 years.

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