A Navy wife who admitted that she sent more than $500,000 earned as a prostitute in Hawaii to her husband on the mainland is going to jail for six months.
A federal judge sentenced Khemwika Ernst to the jail term Thursday for failing to report as income her prostitution earnings and for transporting from one state to another proceeds of an illegal business. Ernst, 39, pleaded guilty to the charges in September. She has until Feb. 18 to turn herself in and remains in a halfway house in Honolulu until then.
U.S. District Senior Judge Susan Oki Mollway also fined Ernst $4,000, ordered her to pay restitution to the IRS and to forfeit to the government $200,000 plus $7,400 in cash authorities seized from a FedEx parcel.
Ernst has already given the government the $200,000 and paid the IRS $110,242 for taxes she and her husband owed for 2008 to 2013. The IRS can still assess her civil penalties for other years.
A federal grand jury in Honolulu charged Ernst and her husband, Navy Petty Officer 1st Class Michael Paul Ernst, with tax evasion and racketeering-related crimes in March. Michael Ernst, 43, committed suicide a month later.
The Ernsts had already admitted to authorities that they used some of the $535,747 Khemwika Ernst earned as a prostitute between 2008 and 2013 to purchase a home in New Jersey in 2012 for $390,000 in cash. They later took out a mortgage on the home to pay their back taxes. The home is where Michael Ernst fatally shot himself.
Khemwika Ernst used the proceeds from her husband’s life insurance policy to pay the $200,000 forfeiture.
At Thursday’s sentencing Ernst told Mollway that she is sorry for what she did, which has caused her to lose her husband and hurt their minor son, who is staying with relatives on the mainland.
Following her arraignment in April, the court allowed Ernst to remain free on $50,000 unsecured signature bond. Rather than order Ernst into custody at the Federal Detentions Center pending her sentencing, Mollway allowed her to go to a halfway house to seek treatment for substance abuse and the post-traumatic stress she experienced over the death of her husband.
Defense lawyer Catherine Gutierrez told Mollway that Ernst loved and depended on her husband and that she feels guilt over his death. She said Ernst has always worked hard to support her family, starting when she left school early in Thailand to work on the family farm.
When Ernst and her husband arrived in Hawaii before the husband’s transfer to Maryland in 2010, Gutierrez said, the couple struggled financially. She said Ernst started earning money doing massage work, which transitioned into prostitution.
Ernst initially sent her prostitute earnings to her husband by depositing the money in their joint Navy Federal Credit Union account. After credit union officials questioned her about the large cash deposits, Ernst started sending the money to her husband in
FedEx parcels.