Sei sulla pagina 1di 9

PAUL S.

AOKI, 1286
Acting Corporation Counsel
DUANE W. H. PANG, 4176 Electronically Filed
Deputy Corporation Counsel FIRST CIRCUIT
City and County of Honolulu 1CCV-20-0000073
530 South King Street, Room 110 15-JAN-2020
Honolulu, Hawaii 96813 11:24 AM
Telephone No.: (808) 768-5230
Email: dpang1@honolulu.gov

Attorneys for Plaintiff

IN THE CIRCUIT COURT OF THE FIRST CIRCUIT

STATE OF HAWAII

CITY AND COUNTY OF HONOLULU, CIVIL NO. _______________


(Breach of Contract)
Plaintiff,
COMPLAINT; DEMAND FOR JURY
vs. TRIAL; SUMMONS

LOUIS M. KEALOHA,

Defendant.

COMPLAINT

1. Plaintiff City and County of Honolulu (“City”) is political subdivision of the State

of Hawaii with the authority to sue and be sued on its own behalf.

DEFENDANT

2. Defendant LOUIS M. KEALOHA (“Kealoha” or “Defendant”) is a resident of the

City and County of Honolulu, and the former Chief of the Honolulu Police Department, City and

County of Honolulu.

JURISDICATION AND VENUE

3. This court has jurisdiction over this action to enforce an agreement between the

parties pursuant to Haw. Rev. Stat. § 603-21.5(a)(3).


4. Venue is proper in the court pursuant to Haw. Rev. Stat. § 603-36(5) as the claim

for relief arose in this circuit and Defendant is domiciled in this circuit.

FACTUAL BACKGROUND

5. Haw. Rev. Stat. § 52D-1 creates a police commission for each county, with the

powers, duties and functions of each police commission to be prescribed by the charter for each

county.

6. The Honolulu Police Commission (“Commission”) is established under the

authority of the Revised Charter of the City and County of Honolulu 1973 (2017 Edition)

(“RCH”) § 6-1605.

7. The Commission has the authority to appoint the Chief of Police of the Honolulu

Police Department (“Chief of Police”).

8. RCH § 6-1603 provides that the Commission shall appoint the Chief of Police to a

five-year term.

9. Under RCH § 6-1603, the Commission has the authority to remove or suspend the

Chief of Police at any time prior to the expiration of the five-year appointment.

10. The Commission initially appointed Kealoha to a five-year term beginning on

November 28, 2009.

11. The Commission reappointed Kealoha to a second five-year term beginning on

November 28, 2014.

12. On or about December 19, 2016, Kealoha informed the Commission that he

received a letter from the United States Department of Justice that informed him that he was the

target of a criminal investigation.

13. On December 19, 2016, the Commission administratively removed Kealoha from

the duties of the Chief of Police by placing Kealoha on leave.

-2-
14. On or about January 18, 2017, in lieu of taking action to remove Kealoha from the

position of the Chief of Police, the Commission approved a retirement agreement (“Agreement”)

between Kealoha and the Commission to allow Kealoha to voluntarily retire as the Chief of

Police.

15. The Agreement provided that the Commission would pay Kealoha a severance

payment in the amount of $250,000 in exchange for the Chief retiring as the Chief of Police on

or before March 17, 2017.

16. The Agreement further provides that “in the event that, within seven (7) years

following execution of the Agreement, you are convicted of, plead guilty to, or plead nolo

contendere to any felony under State or Federal law, which conviction or plea relates to or arises

from or in connection with, your employment with HPD, or arises from an event or events that

occurred during the time you were employed with HPD, you must repay to HPD the entire

amount you received under Paragraph 2(a) [$250,000] of this Agreement within sixty (60)

calendar days of the date on which such conviction is affirmed by the last court of appeal and/or

you have exhausted your rights to appeal such conviction.”

17. On or October 19, 2017, a criminal indictment entitled United States of America

v. Katherine P. Kealoha (1), aka Katherine E. Kealoha, aka Kathy Kealoha, aka Kat, aka Alison

Lee Wong, Louis M. Kealoha (2), Derek Wayne Hahn (3), Minh-Hun Nguyen (4), aka Bobby

Nguyen, Gordon Shiraishi (5), and Daniel Sellers (6), Case No. 17CR0582 JMS-RLP, was filed

in the United States District Court, District of Hawaii. The indictment contained 20 separate

criminal counts including Conspiracy (18 U.S.C. § 371); Counts 2-6, Obstruction of Official

Proceeding (18 U.S.C. § 1512(c)(2)); Counts 7-8, False Statements to Federal Officer (18 U.S.C.

§ 1001); Count 9-16, Bank Fraud (18 U.S.C. § 1344); and Counts 17-20, Aggravated Identity

Theft (18 U.S.C. § 1028A).

-3-
18. On March 22, 2018, a First Superseding Indictment was filed (“First Superseding

Indictment”). The First Superseding Indictment identified the same named Defendants with 23

separate Counts to include Count 1, Conspiracy (18 U.S.C. § 371); Counts 2-8, Obstruction of

Official Proceeding (18 U.S.C. § 1512(c)(2)); Counts 9-11, False Statements to Federal Officer

(18 U.S.C. § 1001); Count 12 - 19, Bank Fraud (18 U.S.C. § 1344); and Counts 20-23, Aggravated

Identity Theft (18 U.S.C. § 1028A).

19. On March 24, 2018, a federal grand jury then returned a Second Superseding

Indictment (“Second Superseding Indictment”) against Katherine P. Kealoha and Louis M. Kealoha

only. The Second Superseding Indictment included only Counts 12-23 of the First Superseding

Indictment and was given a new case number, CR. No. 18-00068 JMS-RLP. The Second

Superseding Indictment includes the following Counts: Counts 1- 8, Bank Fraud (18 U.S.C.

§ 1344); Counts 9-12, Aggravated Identity Theft (18 U.S.C. § 028A); and Counts 13-14,

Obstructing of Official Proceedings (18 U.S.C. § 1512(c)(2)).

20. On or about October 29, 2018, the United States District Court issued an order

clarifying the various indictment, granted various motions to sever the various counts in the

Indictment and ordered separate trials.

21. On or about June 27, 2019, after a lengthy criminal trial, the jury found Kealoha

guilty of conspiracy to obstruct justice, and of three counts of attempt to obstruct an official

proceeding.

22. On or about September 19, 2019, a Third Superseding Indictment was filed against

Kealoha, which included the following Counts: Count 1-8 Bank Fraud (18 U.S.C. § 1344); Counts

9-12 Aggravated Identity Theft (18 U.S.C. § 1028A) and Counts 13-14 Obstruction of Official

Proceedings (18 U.S.C. § 1512(c)(2)).

-4-
23. On or about October 22, 2019, Kealoha entered a Plea Agreement relating to all

three criminal indictments.

24. The Plea Agreement provides the following admissions by Kealoha:

a. That from January 1, 2009 through December 31, 2014, Defendant and his

wife Katherine P. Kealoha (“K. Kealoha”) spent more than $591,000 on their extravagant lifestyle,

which was derived from: (1) stolen proceeds from a reverse mortgage obtained by Florence Puana;

(2) stolen funds belonging to Ransen Taito and Ariana Taito; and (3) loan proceeds obtained

through banks and credit unions based upon the fraudulent scheme derived below.

b. That between 2007 and 2016, Defendant and K. Kealoha knowingly devised,

with intent to defraud, schemes to defraud multiple financial institutions and obtain funds by means

of materially false pretenses, representations and promises.

c. Their schemes included falsely claiming assets that belong to others, falsely

inflating their monthly income, and falsely denying derogatory credit in order to convince financial

institutions to grant the loans requested by Defendant and K. Kealoha.

25. By entering into the Plea Agreement, Kealoha further agreed to plead guilty to

Count Four of the Third Superseding Indictment, charging Kealoha with Bank Fraud, in violation of

18 U.S.C. § 1344.

26. The Plea Agreement further provides that Kealoha knowingly waives all rights to

appeal his criminal conviction as stated in paragraph 21.

27. On or about October 23, 2019, the Commission, through its attorneys, the

Department of the Corporation Counsel, demanded repayment of the severance amount of $250,000

pursuant to the terms of the Agreement.

28. Kealoha has not responded nor has he returned the severance payment of $250,000,

which is a breach of the Agreement.

-5-
CLAIM FOR RELIEF: BREACH OF CONTRACT

29. Plaintiff re-alleges the allegations set forth in Paragraphs 1-28 above and

incorporates same herein by reference.

30. On June 22, 2019, Kealoha was found guilty by a jury of Federal felony criminal

violations and on October 22, 2019, Kealoha pled guilty to additional felony criminal violations,

which relate to or arise from or in connection with, Kealoha’s employment with HPD or arise

from events or events that occurred during the time he was employed by HPD.

31. Pursuant to the Agreement, if Kealoha is convicted or pleads guilty to Federal

felony criminal violation as described in paragraph 17 of the Agreement, Kealoha is required to

repay the amount of $250,000 to the Honolulu Police Department.

32. As of the filing of this complaint, Kealoha has not made repayment of the

$250,000 severance payment to the Honolulu Police Department.

CLAIM FOR RELIEF: UNJUST ENRICHMENT

33. Plaintiff re-alleges the allegations set forth in Paragraphs 1-32.

34. The City conferred a benefit upon Kealoha in the form of the severance payment

of $250,000 with repayment of the amount required upon the occurrence of certain conditions.

35. The conditions of repayment of the $250,000 have occurred.

36. The continued retention of the benefit of the $250,000 is unjust.

37. The City is entitled to the repayment of the $250,000 made to Kealoha.

PRAYER FOR RELIEF

WHEREFORE, the City and County of Honolulu prays for judgment against Louis M.

Kealoha as follows:

A. Entry of judgment in favor of the City and County of Honolulu and against

Louis M. Kealoha in the amount of $250,000.

-6-
B. Prejudgment interest at the statuary rate from the time payment was due.

C. Reasonable attorney’s fees and costs.

D. Any and all other legal and equitable relieve that may be available under the law.

DATED: Honolulu, Hawaii, January 15, 2020.

PAUL S. AOKI
Acting Corporation Counsel

By:_/s/ Duane W. H. Pang


DUANE W. H. PANG
Deputy Corporation Counsel
Attorney for Plaintiff

-7-
IN THE CIRCUIT COURT OF THE FIRST CIRCUIT

STATE OF HAWAII

CITY AND COUNTY OF HONOLULU, CIVIL NO. _______________


(Breach of Contract)
Plaintiff,
DEMAND FOR JURY TRIAL
vs.

LOUIS M. KEALOHA,

Defendant.

DEMAND FOR JURY TRIAL

Pursuant to HRCP Rule 38, Plaintiff by and through its attorney, hereby demand a jury

trial on all issues so triable.

DATED: Honolulu, Hawaii, January 15, 2020.

PAUL S. AOKI
Acting Corporation Counsel

By:_ /s/ Duane W. H. Pang


DUANE W. H. PANG
Deputy Corporation Counsel
Attorney for Plaintiff
STATE OF HAWAI’I I SUMMONS CASE NUMBER
I
CIRCUITCOURTOFTHE
FIRST CIRCUIT I TO ANSWER CIVIL COMPLAINT
PLAINTIFF VS. DEFENDANT(S)
CITY AND COUNTY OF HONOLULU LOUIS M. KEALOHA

PLAINTIFF S NAME & ADDRESS, TEL. NO.


Department of the Corporation Counsel
City and County of Honolulu
530 South King Street, Room 110
Honolulu, HawaN 96813
Telephone No.: 768-5230

TO THE ABOVE-NAMED DEFENDANT(S)


You are hereby summoned and required to file with the court and serve upon
Duane W. H. Pang, Deputy Corporation Counsel
530 South King Street, Room 110, Honolulu, Hawaii 96813

plaintiff’s attorney, whose address is stated above, an answer to the complaint which is herewith served upon you, within
20 days after service of this summons upon you, exclusive of the date of service. If you fail to do so, judgment by default
will be taken against you for the relief demanded in the complaint.

THIS SUMMONS SHALL NOT BE PERSONALLY DELIVERED BETWEEN 10:00 P.M. AND 6:00 A.M. ON
PREMISES NOT OPEN TO THE GENERAL PUBLIC, UNLESS A JUDGE OF THE ABOVE-ENTITLED
COURT PERMITS, IN WRITING ON THIS SUMMONS, PERSONAL DELIVERY DURING THOSE HOURS.
A FAILURE TO OBEY THIS SUMMONS MAY RESULT IN AN ENTRY OF DEFAULT AND DEFAULT
JUDGMENT AGAINST THE DISOBEYING PERSON OR PARTY.

The original document is filed in the


Judiciary’s electronic case management Effective Date of 28-Oct-2019
system which is accessible via eCourt Kokua Signed by: Isi Patsy Nakamoto
at: httpiwww.courts.state.hi.us Clerk, 1st Circuit, State of Hawaii

J reasonable accommodation for a disabilty please contact the ADA Coordinator at the Circuit Court Administration Office on
OAHU- Phone No. 808-539-4400 TTY 808-539-4853, FAX 5394402 at least ten (10) work ng days prior to your heanng or
appointment
In accordancedate.
with the Americans with Disabilities Act, and other applicable state and federal laws, if you require a

rorm 1CP.787 (1Cc) (10 19)


Summons to Complaint RG-AC.S08 (10/19)