A federal grand jury has indicted a former lieutenant with the Kauai Police Department for allegedly stealing $75,000 from the department’s operational funds.

Karen M. Kapua, 53, appeared before U.S. Magistrate Judge Barry Kurren in Honolulu on today and pleaded not guilty to charges of three counts of embezzlement and one count of money laundering.

The FBI arrested Kapua on Kauai today and transported her to Honolulu. Kapua was released after she posted $50,000 in bail and returned to Kauai. Her trial is set for March 15 before Chief U.S. District Judge Michael Seabright.

If convicted, she faces up to 10 years in prison on each of the theft and money laundering charges.