Louis and Katherine Kealoha have asked a federal judge to waive their right to a jury trial on bank fraud charges, an indication that the defendants and the government are making progress in ongoing negotiations to settle the case.
The retired police chief and his wife, a former deputy prosecutor, are scheduled to stand trial on the bank fraud charges on Jan. 14, with jury selection starting that day.
But U.S. District Chief Judge J. Michael Seabright scheduled a hearing for Wednesday to hear the Kealohas’ request to forgo a jury trial.
Seabright’s order said government prosecutors have agreed to the request.
If Seabright signs off on it but the parties are unable to reach a settlement, a bench trial would be held, with the judge, not a jury, determining the verdict.
Gary Singh, Katherine Kealoha’s attorney, told the Honolulu Star-Advertiser that he filed the request because his client didn’t want the court to devote resources preparing for the January trial while serious negotiations are ongoing. He declined comment on the negotiations.
Rustam Barbee, Louis Kealoha’s attorney, said his client “has full confidence in the ability of Judge Seabright to adjudicate the matter fairly without the need for a second trial.”
A spokeswoman for the U.S. attorney in San Diego could not be reached for comment. That office is handling the Kealoha prosecutions.
The Kealohas, along with two Honolulu police officers, were found guilty by a jury in June of conspiracy and obstruction of justice for framing Katherine Kealoha’s uncle for the 2013 alleged theft of the couple’s mailbox and for lying about their actions to federal investigators.
In January the Kealohas face charges of bank fraud, aggravated identity theft and obstruction of justice in connection with the alleged theft of a $167,000 inheritance of two children for whom Katherine Kea-loha served as financial guardian and with allegations of defrauding several financial institutions.
Katherine and her brother, Dr. Rudolph Puana, are scheduled to go on trial in May on charges related to allegations that they trafficked in opioids and that Kealoha used her position as a deputy prosecutor to hide it.
The ongoing negotiations are to settle charges for the two upcoming trials. A settlement also could affect the Kealohas’ sentencing Oct. 31 on the conspiracy and obstruction convictions.
All three cases stemmed from a wide-ranging public corruption investigation that federal authorities began in 2015 and which is continuing.
Correction: An earlier version of this story gave the incorrect day for the hearing on Louis and Katherine Kealoha’s request to waive their upcoming jury trial on bank fraud charges.
