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The Latest: Hawaii power couple convicted in fraud case

June 28, 2019

HONOLULU (AP) — The Latest on the conviction of a Hawaii power couple in a corruption trial (all times local):

5:30 p.m.

A bail hearing has been set for a former Honolulu prosecutor, convicted alongside her husband in a plot to frame a relative to silence him from revealing fraud that financed their lavish lifestyle.

Katherine Kealoha left the courthouse without commenting after Thursday’s verdict. Her husband said, “It’s still a lot to take in.” He thanked the community for “continued love and support.”

The judge scheduled a bail hearing for Katherine Kealoha on Friday after a federal prosecutor asked that she be jailed.

The Kealohas were on trial over allegations they conspired with officers to frame her uncle for stealing their home mailbox. Prosecutors say the Kealohas wanted to discredit their relative in a lawsuit saying Katherine Kealoha stole money from the uncle and his mother in a mortgage scheme.

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4:55 p.m.

A jury has found a former Honolulu prosecutor and her now-retired police chief husband guilty in a plot to frame a relative to silence him from revealing fraud that financed their lavish lifestyle.

The verdict came Thursday in what has been described as Hawaii’s biggest corruption case.

Neither Katherine nor Louis Kealoha testified during the closely watched trial. Their defense attorneys argued the case was built on weak and circumstantial evidence.

They were on trial over allegations they conspired with officers to frame her uncle for stealing their home mailbox. Prosecutors say the Kealohas wanted to discredit their relative in a lawsuit saying Katherine Kealoha stole money from the uncle and his mother in a mortgage scheme.

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