How is this for an out of the ordinary crime? Michelle Malufau, a 47 year old resident of Laie, Oahu has been convicted of bankruptcy fraud and faces sentencing for her crimes on February 27th, 2014. Mrs Malufau is married to an ex-prison guard who worked at the Halawa Correctional Facility. Her husband, Feso Malufau was accused of being involved in a federal racketeering indictment of receiving bribes from both inmates and visitors.
The investigation of this case was carried out in a joint operation between the Federal Bureau of Investigation and the IRS-CI (Internal Revenue Service – Criminal Investigation). The prosecutors assigned to the case of Mrs Malufau were Assistant United States Attorneys Michael Nammar and Andrew Hatton.
Malufau allegedly filed for bankruptcy under the Chapter 7 plan in 2011. She falsified statements on her application and written documents, and then lied to the court while under oath. As a result of her bankruptcy proceedings, she received a discharge of debt that amounted to over a million dollars.
According to the evidence gathered by the FBI and IRS-CI, Malufau also withheld information about at least three different assets that were owned by and/or controlled by her at the time of her bankruptcy filing. Among the assets was a home on Oahu’s North Shore, which had more than $322,000 in equity. She was also in possession of a bank account with an undisclosed amount of money and a vacation rental home.
A United States District court heard the case for four days and the verdict was rendered after only one hour of jury deliberation. Malufau will face sentencing in February 2014 of up to five years for each charge. The sentencing judge is a Senior United States District Judge, the Honorable Judge Helen Gillmor.