Hes Honolulus police chief and shes one of the citys top prosecutors.
The man accused of the theft, is Gerard Puana, Katharines uncle.
But Gerard and him mom Florence say the real crime has been committed by this power couple.
Heres part 2 of our story.
If you haven’t listened to the first episode, you should go do that now.
The trial has extra intrigue because Kealoha’s wife, Katherine, is also Puana’s niece.
The statement was inadmissible, and the experienced chief surely knew that.
[00:02:24] Alexander Silvert: It caught everybody off guard.
[00:02:31] Bob: Silvert asks the judge to declare a mistrial which happens quickly.
Then he makes the unusual and dramatic step as a defense attorney.
He goes on the offensive.
First, he decides to go to the press.
Here’s Reporter Lynn Kawano.
It hadn’t unraveled for me yet.
[00:03:20] Bob: But Silvert goes farther than claiming innocence for his client.
[00:04:21] Bob: It’s quite a risk.
What if prosecutors say no and won’t drop charges against Gerard?
Then Silvert has shown them all his evidence.
What if the prosecutors are in on the scheme too?
It’s already an intimidating situation, so Silvert takes steps to make it less intimidating.
[00:04:38] Alexander Silvert: Well in this case, what we did was we wanted homefield advantage.
We didn’t want to go to the FBI office.
[00:05:15] Bob: Things didn’t begin very well.
Someone needs to continue investigating the Kealohas, Silvert demands.
I had worked with these prosecutors for 20 years, so I knew them really well.
Our relationships between each other are normally not that cordial.
We constantly do battle with each other.
It was a risk.
Once we were done, they asked me what I wanted.
So we kind of started on bad terms and we kind of ended on bad terms.
[00:07:00] Bob: Three months go by.
All the while, Gerard is looking over his shoulder.
And he’s waiting to hear his own fate.
Meanwhile, that mailbox lie, it keeps gnawing at Silvert.
Silvert now has a new theory.
That’s a civil case, and it’s still pending.
And within a minute or two, I got a call from Mr. Gerard will have more legal needs now.
[00:09:12] Alexander Silvert: Yes, and no.
So my office continued to represent Gerard in that capacity.
[00:09:57] Bob: Meanwhile, she’s doing her own investigation.
Soon enough, she has the chance to meet Gerard and his mom, Florence.
[00:10:11] Lynn Kawano: She was amazing.
And I said, “Oh, show me what you do.
Show me in the camera what you do.”
And she gets on this little exercise bike, and she goes, and she’s still talking.
Um, to everyone who met her, she definitely didn’t seem like she was in her 90s.
[00:11:00] Bob: For two years, it’s unclear what the Grand Jury will do.
[00:11:04] Alexander Silvert: As I was told by Mr.
So it took them quite a long time to gather all the evidence so that get an indictment.
[00:12:00] Alexander Silvert: In Hawaii, we are we are land rich and cash poor.
That was the plan.
[00:13:19] Bob: Where did the plan go wrong?
Strong accusations from the Federal Government against Louis and Katherine Kealoha who were arrested by the FBI this morning.
[00:14:31] Bob: The indictment is handed down.
The details are shocking.
The Honolulu power couple is now on trial.
The Kealohas immediately plead innocent.
In an interview with local television, Louis Kealoha says he and Katherine are the victims.
[00:15:23] Bob: The case is no slam dunk.
Two more years go by and the sides dig in.
When the trial finally arrives, the jury hears from 70 witnesses, including Gerard Puana, twice.
But the most important witness is Florence Puana, the family matriarch.
Now 99 and recovering from a heart procedure, she’s too sick to attend the trial in person.
But the judge allows her to testify by video deposition, an unusual step in a criminal case.
Florence Puana: Yes.
Q: So in October of 2009, did the reverse mortgage finalize?
Florence Puana: It was at the Central Pacific Bank, I think.
We went to Central Pacific Loan Bank, and we had it finalized.
Q: And how much money approximately did you get from the reverse mortgage?
Florence Puana: I did not get any money.
Q: So you didn’t ever see any of that money.
Florence Puana: No, I did not.
Florence Puana: Up.
It was going way up.
[00:16:55] Bob: The deposition takes almost all day.
There’s more than four hours of video statements.
It would be grueling for anyone, let alone a 99-year-old recovering from surgery.
Lawyers for the Kealohas tried to trip her up.
I didn’t have a key.
Interjection: Objection, asked and answered, badgering the witness.
Florence Puana: I did not know anything.
Q: Okay, okay.
Florence Puana: I did not know.
[00:17:33] Bob: In the end, her testimony is devastating.
Some parts of it are painful to hear.
Q: After you got those bank statements, did you learn what happened to your money?
Florence Puana: I did.
Q: And what happened to your money?
Florence Puana: She spent it all.
Q: Who is she?
Florence Puana: Katherine.
Q: Katherine Kealoha?
This is the bates number of ending 24 in Governments Exhibit 1-13.
Mrs. Puana, there’s a purchase reflected on this page of $23,976.69 at the Sheraton Waikiki.
Did you spend over $23,000 at the Sheraton Waikiki?
Florence Puana: No, I didn’t.
Q: Do you know who did?
Florence Puana: Katherine did.
That was for her husband’s breakfast.
Florence Puana: I wouldn’t have, because I, I didn’t have that kind of money.
Q: Now, did you have a close relationship with Katherine as she was growing up?
Florence Puana: Yes, I did.
Q: How would you describe your relationship?
Florence Puana: She was a lovely, loving, gentle person.
And I trusted her.
Louis Kealoha has also been found guilty of conspiracy.
[00:19:43] Bob: At the news, Gerard Puana breaks down.
[00:19:53] Bob: The prosecutor is able to deliver the news to Florence directly.
The uh US Attorney’s Office, the prosecutor, Mr.
I talked to her after the verdict.
[00:20:22] Bob: Lynn Kawano reported on that special 100th birthday.
[00:20:25] (news clip) It was the party Florence Puana wanted.
Puana had a lot to celebrate.
She died in February 2020, just a few months after the guilty verdict.
[00:21:10] Gerard Puana: Well, that’s what my mother was.
She just, she lives with pure love.
[00:21:19] Bob: There is still one more valley of suffering for Gerard to cross.
The Kealoha sentencing is delayed by the coronavirus.
But in late 2020, Katherine is sentenced to 13 years and Louis, 7 years.
It’ll be a while before Hawaii is back to normal, too.
[00:21:46] Lynn Kawano: No, um, far from it.
[00:21:59] Bob: So this story is far from over, you would say.
[00:22:01] Lynn Kawano: Absolutely.
I think we are maybe just a few chapters in.
[00:22:06] Bob: Kawano calls it the story of her life.
A story that taught her a valuable lesson.
[00:22:12] Lynn Kawano: This has been the pinnacle of my career.
I mean it’s, it’s the Police Chief.
You’re going up against the word of the Police Chief on the stand.
Who’s the jury going to believe?
[00:23:59] Bob: Thank you, Kathy, for um, hopping on the call with us.
[00:24:02] Kathy Stokes: Sure.
[00:24:03] Bob: Tell us about reverse mortgages.
[00:24:46] Bob: A reverse mortgage is really just a loan against your home.
But it’s a special loan designed just for older Americans, people over 62.
Usually, borrowers can tap up to 60% of their home’s equity in a reverse mortgage.
Despite a lot of advertising, they aren’t very popular.
For decades there have been ongoing efforts to improve the industry and confirm consumers are making informed choices.
Still, there are plenty of concerns.
[00:25:45] Kathy Stokes: I mean having a requirement of counseling is really important.
[00:26:11] Bob: What should consumers do if they are considering a reverse mortgage?
[00:26:15] Kathy Stokes: You know, there’s a lot of good research out there.
The Federal Consumer Financial Protection Bureau, CFPB, has a lot of really good information about reverse mortgages.
Go online and find out everything you’re able to.
You know, just know the details, but eyes wide open.
Katherine used other financial trickery to steal money too.
Her real weapon wasn’t the reverse mortgage.
We also talk a bit about elder financial exploitation which is itself an even bigger issue.
All of that happens, and people get entirely wiped out over these things.
Honolulu has a long way to go to recover from a scandal that really shook the city.
[00:28:35] Lynn Kawano: That’s a good way to describe it.
It shook um, Honolulu politics, Honolulu law enforcement to its core.
Call the AARP Fraud Watch data pipe Helpline at 877-908-3360.
Their trained fraud specialists can provide you with free support and guidance on what to do next.
That address again is: theperfectscampodcast@aarp.org.
Be sure to find us on Apple Podcasts, Spotify, or wherever you listen to podcasts.
For AARP’s The Perfect Scam, I’m Bob Sullivan.
AARPs Fraud Watch connection can help you spot and avoid scams.
