LIHU‘E — After 13 years of appeals all the way to the Hawaiian Supreme Court, Steven and April Schaefer were sentenced to a year in jail for scheming Kaua‘i couples out of money. The Schaefers appeared before 5th District Court
LIHU‘E — After 13 years of appeals all the way to the Hawaiian Supreme Court, Steven and April Schaefer were sentenced to a year in jail for scheming Kaua‘i couples out of money.
The Schaefers appeared before 5th District Court Judge Laurel Loo. It was their first court appearance since their first sentencing on June 18, 2009. The couple currently resides on Maui.
Hayden Aluli, attorney for Steven Schaefer, was also representing April in the absence of her attorney Mimi Des Jardins. His request for a 14-day stay on their incarceration was granted by Judge Loo, who ordered that the couple report to the Kaua‘i Community Correctional Center on or before 6 p.m. on Nov. 26.
Aluli had requested a 30-day continuance before self-surrender. The couple intends to appeal the case in federal court based on the plea agreement and he said the special proceedings would take 14 days to file and that the couple’s right to due process warranted the continuance.
Judge Loo denied the request after strong objections from County Prosecuting Attorney Shaylene Iseri-Carvalho. She said the victims have waited 13 years for justice on this case.
The Schaefers have lost every appeal. With the case reverted back to district court from a Hawai‘i Supreme Court appeal on Oct. 19, there is no reason to delay the sentencing again, Iseri-Carvalho said. Three of the 21 victims in the group have since passed away.
The terms of the 2009 sentencing remain in effect. The couple was tried separately on multiple charges second-degree theft, tax evasion and filing an incorrect tax form.
The plea deal dropped the felony charge in return for accepting 19 misdemeanor charges. They must also pay restitution of $33,876.57 and $1,045 in court fees.
The restitution will go to individuals and couples, some of whom were elderly and members of the Schaefers’ church. They paid from $275 to as much as $6,705, reportedly for future land rights and settlements that the Hawaiian Kingdom would supposedly reap when it regained control of the islands from the United States.
Other money was given for buying driver’s licenses, birth certificates or other official documents of the Hawaiian Kingdom. The most damage came from victims believing advice that they should stop paying mortgages, taxes and bills, because they were not owed by members of the Hawaiian Kingdom.
Dario and Teresita Sibolboro of Lihu‘e were both present as two of the 21 victims. They lost a home to foreclosure and have ruined credit.
It was a time following the 1993 Apology Bill and the victims believed the independence momentum was there and there was a lot of activity going on. They believed it was possible to stop paying mortgages, if you sent in silver coins.
The couple said they took a vacation from work for every court appearance involving the Schaefers. They weren’t as concerned about the $3,925 they lost as they were about the sentence.
“They should get five years jail and not one year,” said David.
The couple said the Shaefers told members that Hawai‘i was not a state and that they just needed to pay money into a trust that would pay off when the Hawaiian Kingdom was restored.
Peggy Castillejos of Kapa‘a was present as a supporter of the Schaefers. She said the group knew the risks they were taking and that many were involved together with money-making schemes, including gold and multi-level marketing prior to the Schaefers.
Castillejos said the Schaefers did pay some money back and that some people refused offers to return the money. There was a big misunderstanding about a class-action suit that turned a lot of people against the Schaefers, she added.
Judge Loo did not speak to the case in court but transcripts from the 2009 sentencing note the court acknowledged past bravery and passion in their work and beliefs. Loo said that it appeared some of these victims may not have been completely passive, but that conduct prevented them the opportunity to stop foreclosures and other impacts to them and their property.
The scheme was abetted, aided and conducted by a pastor, and as a minister of God, Loo stated. The court viewed this as a position of trust that was used to take advantage of a number people.
• Tom LaVenture, staff writer, can be reached at 245-3681 (ext. 224) or by emailing tlaventure@ thegardenisland.com.
