Katherine Kealoha accused of faking illness to delay her trial date

Former city Deputy Prosecutor Katherine Kealoha is faking an illness to delay her trial next month on multiple counts of bank fraud, according to federal prosecutors.

Kealoha and her husband, retired Honolulu Police Chief Louis Kealoha, are accused of lying on loan applications, including the one for the mortgage on their Hawaii Kai home, which they were seen moving out of on Oct. 11, the deadline set by a federal judge for them to leave. Jury selection is scheduled to start Nov. 14 in U.S. District Court.

Katherine Kealoha’s lawyer filed court documents two weeks ago asking to push back the trial date. The lawyer filed the request under seal because they contain confidential medical records and information.

In response, government lawyers said the documents fail “to establish how (Kealoha’s) alleged medical condition would interfere with (her) ability to prepare for and participate in her trial.”

U.S. District Chief Judge Michael Seabright scheduled a public hearing for Tuesday to hear arguments on Kealoha’s request.

The government said Kealoha had previously attempted to manipulate others by claiming to suffer from serious medical conditions and that her request to push back next month’s trial appeared to be another attempt to avoid being held responsible for her actions.

In the original and superseding indictments charging the Kealohas with bank fraud, the government said Kealoha falsely claimed to have serious health problems that affected her vision and handwriting to explain the different handwriting on a loan application.

The Kealohas and four former members of the Honolulu Police Department’s elite Criminal Intelligence Unit are also charged with crimes accusing them of framing Katherine Kealoha’s uncle with stealing the Kealohas’ mailbox and of lying about it to investigators. The trial on those charges is scheduled for March.