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Laie woman sentenced for bankruptcy fraud

By Associated Press

LAST UPDATED: 5:11 p.m. HST, Feb 27, 2014

The wife of a former Oahu prison guard has been sentenced to a year in prison for bankruptcy fraud.

Michelle Malufau was sentenced Thursday to 12 months and one day in federal prison.

A jury found her guilty in November of making false statements on documents and lying under oath in a 2011 bankruptcy proceeding.

Prosecutors say the Laie woman concealed assets including a North Sore Oahu home, a bank account and rental income while clearing more than $1 million of debt by filing for bankruptcy.

Assistant U.S. Attorney Andrea Hattan says the sentence also includes 400 hours of community service.

Her husband is a former guard at Halawa Correctional Facility accused in a federal racketeering indictment of taking bribes.

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