LIHUE — A former Kauai Police Department lieutenant was charged and arrested by the FBI Thursday for allegedly embezzling $75,000 in county funds. Former KPD Lt. Karen Kapua, 53, was arrested without incident Thursday morning on Kauai and flown to
LIHUE — A former Kauai Police Department lieutenant was charged and arrested by the FBI Thursday for allegedly embezzling $75,000 in county funds.
Former KPD Lt. Karen Kapua, 53, was arrested without incident Thursday morning on Kauai and flown to Honolulu to face charges of theft and money laundering. She pleaded not guilty to all charges, was released on bail and allowed to return to Kauai, according to a U.S. Department of Justice press release.
Her trial is set for March 15 before Chief United States District Judge J. Michael Seabright.
Kapua is charged with four separate counts on the Jan. 13 indictment, which alleges that while Kapua was employed with KPD she knowingly embezzled, stole and intentionally misapplied property in total of $75,000 for three occasions between Dec. 23, 2013 and Dec. 5, 2014.
Count four specifies Kapua allegedly laundered $11,457.98 to pay off personal debts.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Kapua was charged in an indictment “involving the theft of money from the County of Kauai, an organization which received federal grants of more than $10,000 annually, including grants from the United States Drug Enforcement Administration.”
KPD Chief Daryl Perry said his department was cooperating with the FBI to investigate possible criminal activity by Kapua, who as of Dec. 6 was no longer employed at KPD.
KPD had conducted its own internal investigation, Perry said.
“The ongoing criminal investigation is being conducted by the FBI. As with any arrest, all individuals are presumed innocent unless and until proven guilty in a court of law,” Perry said. “I am hopeful that the public will view this as an isolated incident and not a reflection of the department as a whole. I stand by the men and women of the Kauai Police Department and their commitment to excellence. I am immensely proud of the work that they do to create a better, safer community.”
Kapua, a 20-year veteran with KPD, started as a radio dispatcher, then as a patrol officer, then a patrol sergeant and detective.
In 2012, she was promoted to lieutenant and served in the Narcotics Enforcement Unit in the Investigative Services Bureau. In 2010, Kapua was KPD’s “Officer of the Year” and in 2011 she was nominated for a statewide officer of the year.
If convicted of the charges, Kapua would face a sentence of up to 10 years on each of the theft and money laundering offenses.
