The Latest: Ex-police chief pleads guilty to bank fraud

HONOLULU (AP) — The Latest on a retired police chief and his wife pleading guilty in a federal corruption investigation (all times local):

3:25 p.m.

A former Honolulu police chief has pleaded guilty to bank fraud, capping a federal corruption investigation against him and his wife, an ex-deputy city prosecutor.

A jury in June convicted Louis and Katherine Kealoha of conspiracy in a plot to frame a relative to keep him from revealing fraud that financed their lavish lifestyle. Prosecutors say they abused their power and police resources.

The Kealohas are avoiding additional trials by pleading guilty Tuesday.

Earlier Tuesday Katherine Kealoha pleaded guilty to bank fraud, identity theft and to a charge that she didn't report to federal authorities that she knew her physician brother was dealing drugs.

The ex-chief filed for divorce last week.

He says he knew he and his wife provided false information about rental income they were receiving to inflate their chances of obtaining a loan.

___

11:45 a.m.

A former deputy Honolulu prosecutor has pleaded guilty to bank fraud, identity theft and a drug-related charge.

A jury in June convicted Katherine Kealoha and her retired police chief husband of conspiracy in a plot to frame a relative to keep him from revealing fraud that financed their lavish lifestyle.

Her plea Tuesday allows her and her husband to avoid additional trials. Louis Kealoha, who filed for divorce last week, is expected plead guilty to bank fraud later Tuesday.

She pleaded guilty to a bank fraud charge that says she filed false information in a bank loan application. She pleaded guilty to identity theft involving a forged police report to help explain bad credit on a loan application.

In a separate indictment for drug-dealing allegations with her pain physician brother, she pleaded guilty to a charge of knowing about his crimes but not reporting them.

___

8 a.m.

A retired Honolulu police chief and his wife convicted of conspiracy are pleading guilty in remaining cases against them.

It's the latest disgrace for Louis and Katherine Kealoha, once considered a power couple. Katherine Kealoha is an ex-deputy Honolulu prosecutor.

Jurors in June convicted the Kealohas in a plot to frame a relative to keep him from revealing fraud that financed their lavish lifestyle.

A second trial for bank fraud and identity theft was scheduled for January. In a deal with prosecutors, the Kealohas are expected to plead guilty Tuesday to bank fraud. Katherine Kealoha's attorneys say she will also plead guilty to identity theft.

She was facing a third trial for separate drug-dealing allegations with her pain physician brother. She's also expected to plead guilty in that case.