The state of Hawaii and Catholic Charities Hawaii have settled a civil lawsuit for $690,000 involving the alleged repeated sexual assault, molestation and abuse of a foster child by the foster mother’s son and his friend who both lived with them, plaintiff’s lawyers said.

The foster child’s biological mother filed the case on her daughter’s behalf on Oct. 10, 2019, in Kona Circuit Court, naming as defendants the state of Hawaii, the state Department of Human Serv­ices, then-DHS social worker Kerry Perez in her official capacity, Gloria Holmes and the two men. Catholic Charities was later added as a defendant.

The state and Catholic Charities settled Aug. 29. Holmes, the foster mother, settled separately in January, court records show, but the details were confidential.

Catholic Charities agreed to pay $90,000. But the plaintiff must wait for the $600,000 settlement from the state until the state Legislature’s approval during the 2025 legislative session.

At the time the alleged assaults occurred between July 2017 and February 2018, the victim was 13 and 14. She is now 20, said one of her attorneys, Carlos Perez-Mesa Jr.

Police were notified of the alleged sexual assaults in February 2018 after the girl was removed from the foster home of Holmes and when she began hurting herself, but neither Holmes’ son, Wayne Holmes, nor his friend, Tye Puaoi-Marcellino, were ever charged, her attorneys said.

Annaliese Wolf, the deputy prosecutor assigned to the case, declined to comment on why no charges were filed.

The plaintiff’s expert report by Stolar Consultation Inc., which Perez-Mesa said went unchallenged by the defendants, provided details of what happened to the girl, what the two men allegedly did to her and how DHS, Catholic Charities and their employees failed her. Some of the information in the report is taken from depositions in the case.

DHS is the state’s umbrella social services agency and, among other things, operates Hawaii’s protective services, foster care and adoption services. DHS contracts Catholic Charities Hawaii to help vet potential foster homes, and was sued in this case because the plaintiff was placed in foster care by DHS based on a report completed by Catholic Charities on or about July 31, 2017, the complaint says.

As early as December 2015, well before the 13-year-old was placed in the Holmes’ foster home, DHS was notified by Hawaii County police about the foster home after a neighbor made a complaint to the National Center for Missing and Exploited Children.

Police responded to the complaint and contacted DHS, which did not investigate the claims.

A DHS supervisor who was not named as a defendant testified in her deposition for a Hawaii Police Department incident report dated Dec. 29, 2015, according to the Stolar report.

The police report said the neighbor believed children were being sexually exploited, possibly in exchange for prescription drugs. She observed the changing of diapers and saw what could possibly have been an injury due to exploitation, according to the report. She told police that unidentified men in the home were watching movies containing nudity, possibly when the children were present, and that she believed drug use and sales were occurring.

While the claims were never substantiated, DHS was notified, and according to the DHS supervisor, the state agency did not follow through on the neighbor’s allegations.

The Stolar report and complaint allege that Perez, the DHS caseworker, met the foster child who is the plaintiff in this case at a coffee shop to discuss her placement in Holmes’ home. The report says the foster girl’s older sister, a minor at the time who was already placed there, was also at that May 2017 meeting.

The older girl told her sister that a man who frequented the home was constantly trying to have sex with her, according to the report, which said she was referring to Puaoi- Marcellino, then 30. Perez allegedly overheard that and told the older sister, “Don’t tell her (plaintiff) that. Otherwise, she won’t go there (G. Holmes’ residence),” according to the complaint.

The Stolar report said the sister, in her 2022 declaration, alleged that Puaoi- Marcellino sexually assaulted her on multiple occasions, that he was often in the home alone with the other foster children morning to night, and that Perez often saw him in the home.

Perez allegedly failed to make a mandatory report of suspected child abuse, failed to remove the sister, chastised the sister for trying to scare her younger sister and placed the 13-year-old in the same home, according to the Stolar report.

Gloria Holmes’ one- bedroom apartment was first approved as a foster home in 2013, despite her having a criminal history of assault, according to court records.

A Catholic Charities worker did a home study report in 2013 on Holmes’ home, but the report was redacted, so it is unclear whether the social worker interviewed other adults and children in the home. The social worker’s supervisor signed off on the report and made the recommendation to DHS, according to Mark Gallagher, another of the plaintiff’s attorneys.

He said Wayne Holmes was initially a frequent visitor and ended up being a babysitter to the foster kids.

“Catholic Charities did not screen Wayne, even though they knew he was living in an adjacent apartment,” Gallagher said. When Gloria Holmes got a larger apartment, the son and Puaoi-Marcellino moved in, he said.

Gloria Holmes, the state and Catholic Charities allowed Puaoi-Marcellino to have unfettered access to the children, the Stolar report said.

“Ms. Holmes failed to protect and knowingly endangered (the two sisters) and other foster children by allowing Puaoi-Marcellino and Wayne ‘Chris’ Holmes unfettered access to these young girls as she left them alone with them consistently,” the report says.

Gallagher said, “Foster kids are some of the most vulnerable citizens, and we can’t seem to take care of them properly. It’s very sad.”

The state’s settlement portion includes claims against Perez. DHS officials said she no longer works for the department but did not respond to questions as to whether DHS reprimanded her or terminated her employment.

Contact information for Perez could not be found.

Perez, the state and DHS were represented by the Department of the Attorney General, which responded to the Honolulu Star- Advertiser’s request for comment, saying, “The parties have reached a mutually agreeable settlement. Given the confidential and sensitive nature of the case, we have no further statement at this time.”

DHS said in a written statement, “The department appreciates that the case reached a resolution and hopes for the best for the Plaintiff moving forward.”

Catholic Charities Hawaii said in a written statement, “We want to make it clear that this settlement is not an admission of guilt or wrongdoing. We stand 100 percent behind our dedicated staff, who work tirelessly to uphold the highest standards of care and integrity in all of our processes.

“The safety and well- being of our clients are, and always will be, our top priority. We will continue to focus on our mission to provide a wide range of social services with dignity, compassion, social justice, and a commitment to excellence.”

Gloria Holmes, who entered into a separate, confidential settlement agreement Jan. 29, could not be located for comment. Her attorneys did not respond to the Star- Advertiser’s request for comment.

Holmes’ attorneys’ fees were covered by an insurance policy, which covers up to $100,000 for the legal defense of a foster parent in the event he or she is sued.

Wayne Holmes and Puaoi-Marcellino never made an appearance in the case. The plaintiff’s attorneys say Puaoi-Marcellino is homeless and could not be found. A hearing on an entry for default judgment against Wayne Holmes was set for Sept. 24 but was canceled after a settlement was reached.

The Star-Advertiser attempts to contact the two men were unsuccessful.