HONOLULU — A foreclosure lawsuit alleges that a former Honolulu police chief and his deputy prosecutor wife aren’t paying their home mortgage.
The lawsuit filed by Hawaii Central Federal Credit Union comes as Louis and Katherine Kealoha fight a criminal indictment for corruption. The credit union claims the couple have defaulted on a $1 million mortgage.
Jonathan Lai, an attorney for the credit union, declined to say Thursday when the Kealohas stopped paying their mortgage.
The indictment accuses the Kealohas, along with former and current police officers, of framing a man. They have pleaded not guilty.
A judge appointed taxpayer-funded lawyers for the Kealohas after determining the couple couldn’t afford defense attorneys after paying their monthly mortgage. It’s unclear how the lawsuit will affect their ability to continue receiving taxpayer-funded defense attorneys.