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$1.3M cash for home of Honolulu couple in corruption probe

HONOLULU — A U.S. judge has approved the sale of a home belonging to a retired Honolulu police chief and his former prosecutor wife mired in a corruption investigation.

A buyer is offering more than $1.3 million cash for Louis and Katherine Kealoha’s home in Hawaii Kai, an upscale Honolulu neighborhood.

The Kealohas are accused of framing a relative. Prosecutors say Katherine Kealoha bilked banks, relatives and others to fund the couple’s lavish lifestyle. She and her physician brother were indicted on drug charges.

The house went on the market after a foreclosure lawsuit said the Kealohas weren’t paying their mortgage.

U.S. District Judge J. Michael Seabright said Wednesday that he will revisit whether the Kealohas must help pay for their taxpayer-funded defense team, now that they are no longer responsible for the home’s mortgage.

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