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Case 1:18-cr-00068-JMS-RLP Document 115 Filed 10/25/18 Page 1 of 91 PageID #:

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645743.1
WATANABE ING LLP
A Limited Liability Law Partnership

JONATHAN W. Y. LAI 6504-0


First Hawaiian Center
999 Bishop Street, Suite 1250
Honolulu, Hawaii 96813
Telephone No.: (808) 544-8300
Facsimile No.: (808) 544-8399
E-Mail: jlai@wik.com

Attorney for Interested Party


HAWAII CENTRAL FEDERAL CREDIT UNION

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF HAWAI‘I

UNITED STATES OF AMERICA, CASE NO. 18CR00068 JMS-RLP

Plaintiff, Related Case Nos. 18CV00108-LEK-


KJM; 17CR00582-JMS-RLP)
vs.
DECLARATION OF COUNSEL; EXHIBITS
KATHERINE P. KEALOHA (1), LOUIS A-C
M. KEALOHA (2),

Defendants.

DECLARATION OF COUNSEL

I, JONATHAN W.Y. LAI, hereby declare and state as follows:

1. I am an attorney licensed to practice law before all

Federal and State courts in the State of Hawaii and am one of

the attorneys representing interested party Hawaii Central

Federal Credit Union (“HCFCU”) herein and I make this

declaration based on personal knowledge unless otherwise stated.

2. Pursuant to paragraph 4 of this Court’s ORDER GRANTING

THE UNITED STATES’ MOTION FOR INTERLOCUTORY SALE OF REAL


Case 1:18-cr-00068-JMS-RLP Document 115 Filed 10/25/18 Page 2 of 91 PageID #:
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PROPERTY SUBJECT TO CRIMINAL FORFEITURE, entered herein on

September 27, 2018 as Document No. 79 (the “Order”), requiring

that HCFCU “identify three disinterested persons to appraise the

fair market value of the Real Property,” and that said

appraisals “be forwarded by HCFCU to the Court and all parties

for evaluation and approval by the Court,” attached hereto are

true and correct copies of the following:

a. Uniform Residential Appraisal Report prepared by


Kyle Ikeda of Oahu Appraisals, LLC and dated October
17, 2018 with an effective date of October 12, 2018
(the “Oahu Appraisals Report” – Exhibit A);

b. Uniform Residential Appraisal Report prepared by


Matthew Young of Harlin Young & Co., Ltd., dated
October 17, 2018 with an effective date of October
12, 2018 (the “Harlin Young Report” – Exhibit B);
and

c. Appraisal of Real Property located at 7014 Niumalu


Loop, Lot 84, Por. Luna-Kai Marina, Unit 9-A, FP
1116, Maunalua, Honolulu, Por LC Aw 77, Honolulu, HI
96825, prepared by Devan-Allan H. Inouye, of Allan
Inouye Appraisals, dated as of October 12, 2018 (the
“Inouye Report” – Exhibit C).

3. As stated in the above-listed reports, the appraised

values of the Subject Property are as follows:

Report Appraised Value

Oahu Appraisals Report: $1,200,000.00

Harlin Young Report $1,125,000.00

Inouye Report $1,180,000.00

4. The median of the above-listed values is

$1,168,333.33.

- 2 -
Case 1:18-cr-00068-JMS-RLP Document 115 Filed 10/25/18 Page 3 of 91 PageID #:
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5. In keeping with the provision of paragraph 4 of the

Order which states that “[t]he listing price of the Real

Property shall not be for less than two-thirds of the average of

the three appraised values,” HCFCU is setting the listing price

for the Subject Property at $1,300,000.00.

I declare under penalty of perjury that the foregoing is

true and correct.

DATED: Honolulu, Hawaii October 25, 2018

/s/ Jonathan W.Y. Lai

______________________________
JONATHAN W.Y. LAI

- 3 -
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Case 1:18-cr-00068-JMS-RLP Document 115 Filed 10/25/18 Page 10 of 91 PageID #:
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Case 1:18-cr-00068-JMS-RLP Document 115 Filed 10/25/18 Page 11 of 91 PageID #:
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ALSNPJALK M PLAGAL M ENMLLDJ PLAGJDUDNFEIDLGVWXYZ[?@AB CDEFCGHFCI AB LFGJDBAKLDJ GF CDEFCGML MEECMABMNFHM
IMLPHMSGPCDJ @FID FCM PLAGAL M SFLJFIALAPI FCSFFEDCMGAUD ECF\DSG[
?@AB MEECMABMNCDEFCGAB BP]\DSGGF G@D HFNNFRALK BSFED FHRFC^_ALGDLJDJ PBD_ALGDLJDJ PBDC_JDHALAGAFL FHIMC^DGUMNPD_
BGMGDIDLGFHMBBPIEGAFLB MLJ NAIAGALK SFLJAGAFLB_MLJ SDCGAHASMGAFLB[`FJAHASMGAFLB_MJJAGAFLB_FC JDNDGAFLB GF G@D ALGDLJDJ
PBD_ALGDLJDJ PBDC_JDHALAGAFL FHIMC^DGUMNPD_FCMBBPIEGAFLB MLJ NAIAGALK SFLJAGAFLB MCD LFGEDCIAGGDJ[?@D MEECMABDCIMQ
DaEMLJ G@D BSFED FHRFC^ GF ALSNPJD MLQ MJJAGAFLMNCDBDMCS@ FCMLMNQBAB LDSDBBMCQ ]MBDJ FL G@D SFIENDaAGQ FHG@AB MEECMABMN
MBBAKLIDLG[`FJAHASMGAFLB FCJDNDGAFLB GF G@D SDCGAHASMGAFLB MCD MNBF LFGEDCIAGGDJ[bFRDUDC_MJJAGAFLMNSDCGAHASMGAFLB G@MGJF
LFGSFLBGAGPGD IMGDCAMNMNGDCMGAFLB GF G@AB MEECMABMNCDEFCG_BPS@ MB G@FBD CDcPACDJ ]Q NMR FCG@FBD CDNMGDJ GF G@D MEECMABDCdB
SFLGALPALK DJPSMGAFL FCIDI]DCB@AE AL ML MEECMABMNFCKMLAeMGAFL_MCD EDCIAGGDJ[
f ghijÿhkÿlh0mn ?@D BSFED FHRFC^ HFCG@AB MEECMABMNAB JDHALDJ ]Q G@D SFIENDaAGQ FHG@AB MEECMABMNMBBAKLIDLGMLJ G@D
CDEFCGALK CDcPACDIDLGB FHG@AB MEECMABMNCDEFCGHFCI_ALSNPJALK G@D HFNNFRALK JDHALAGAFL FHIMC^DGUMNPD_BGMGDIDLGFH
MBBPIEGAFLB MLJ NAIAGALK SFLJAGAFLB_MLJ SDCGAHASMGAFLB[?@D MEECMABDCIPBG_MGM IALAIPIoVpZEDCHFCI M SFIENDGD UABPMN
ALBEDSGAFL FHG@D ALGDCAFCMLJ DaGDCAFCMCDMB FHG@D BP]\DSGECFEDCGQ_VqZALBEDSGG@D LDAK@]FC@FFJ_VrZALBEDSGDMS@ FHG@D
SFIEMCM]ND BMNDB HCFI MGNDMBGG@D BGCDDG_VsZCDBDMCS@_UDCAHQ_MLJ MLMNQeD JMGM HCFI CDNAM]ND EP]NAS MLJtFCECAUMGD BFPCSDB_
MLJ VuZCDEFCG@ABFC@DCMLMNQBAB_FEALAFLB_MLJ SFLSNPBAFLBAL G@ABMEECMABMNCDEFCG[
vwxjwyjyÿ(fjn ?@D ALGDLJDJ PBD FHG@AB MEECMABMNCDEFCGAB HFCG@D NDLJDCtSNADLGGF DUMNPMGD G@D ECFEDCGQ G@MGAB G@D
BP]\DSGFHG@AB MEECMABMNHFCM IFCGKMKD HALMLSD GCMLBMSGAFL[
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G@DECASDABLFGMHHDSGDJ ]QPLJPDBGAIPNPB[}IENASAGALG@ABJDHALAGAFLABG@DSFLBPIIMGAFLFHMBMNDMBFHMBEDSAHADJ JMGDMLJ
G@D EMBBALK FHGAGND HCFI BDNNDCGF ]PQDCPLJDCSFLJAGAFLB R@DCD]QoVpZ]PQDCMLJ BDNNDCMCD GQEASMNNQ IFGAUMGDJTVqZ]FG@
EMCGADBMCDRDNNALHFCIDJ FCRDNNMJUABDJ_MLJ DMS@ MSGALK AL R@MG@DFCB@DSFLBAJDCB@ABFC@DCFRL ]DBGALGDCDBGTVrZM
CDMBFLM]NDGAIDABMNNFRDJHFCDaEFBPCDALG@DFEDLIMC^DGTVsZEMQIDLGABIMJDALGDCIBFHSMB@ALX[~[JFNNMCBFCALGDCIB
FHHALMLSAMNMCCMLKDIDLGB SFIEMCM]ND G@DCDGFTMLJ VuZ G@D ECASD CDECDBDLGB G@D LFCIMNSFLBAJDCMGAFL HFCG@D ECFEDCGQ BFNJ
PLMHHDSGDJ ]Q BEDSAMNFCSCDMGAUD HALMLSALK FCBMNDB SFLSDBBAFLB KCMLGDJ ]Q MLQFLD MBBFSAMGDJ RAG@ G@D BMND[
€J\PBGIDLGB GF G@D SFIEMCM]NDB IPBG]D IMJD HFCBEDSAMNFCSCDMGAUD HALMLSALK FCBMNDB SFLSDBBAFLB[F MJ\PBGIDLGB MCD
LDSDBBMCQHFCG@FBDSFBGBR@AS@ MCDLFCIMNNQEMAJ ]QBDNNDCBMBMCDBPNGFHGCMJAGAFL FCNMR AL MIMC^DGMCDMTG@DBDSFBGBMCD
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MJ\PBGIDLGB SML ]D IMJD GF G@D SFIEMCM]ND ECFEDCGQ ]Q SFIEMCABFLB GF HALMLSALK GDCIB FHHDCDJ ]Q M G@ACJ EMCGQ ALBGAGPGAFLMN
NDLJDCG@MGAB LFGMNCDMJQ ALUFNUDJ AL G@D ECFEDCGQ FCGCMLBMSGAFL[€LQ MJ\PBGIDLGB@FPNJ LFG]D SMNSPNMGDJ FL M IDS@MLASMN
JFNNMCHFCJFNNMCSFBGFHG@D HALMLSALK FCSFLSDBBAFL ]PGG@D JFNNMCMIFPLGFHMLQ MJ\PBGIDLGB@FPNJ MEECFaAIMGD G@D IMC^DGdB
CDMSGAFL GF G@D HALMLSALK FCSFLSDBBAFLB ]MBDJ FL G@D MEECMABDCdB \PJKIDLG[
f x7xjzjwxÿhkÿ7ff(zixvhwfÿ7wyÿ|vzvxvw‚ÿghwyvxvhwfn ?@D MEECMABDCdB SDCGAHASMGAFL AL G@AB CDEFCGAB
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GF AG_DaSDEGHFCALHFCIMGAFL G@MG@D FCB@D ]DSMID MRMCD FHJPCALK G@D CDBDMCS@ ALUFNUDJ AL EDCHFCIALK G@AB MEECMABMN[?@D
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?@D B^DGS@ AB ALSNPJDJ FLNQ GF MBBABGG@D CDMJDCAL UABPMNAeALK G@D ECFEDCGQ MLJ PLJDCBGMLJALK G@D MEECMABDCdB JDGDCIALMGAFL
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r[?@D MEECMABDC @MB DaMIALDJ G@D MUMANM]ND HNFFJ IMEB G@MGMCD ECFUAJDJ ]Q G@D ƒDJDCMN„IDCKDLSQ `MLMKDIDLG€KDLSQ
VFCFG@DCJMGM BFPCSDBZMLJ @MB LFGDJ AL G@AB MEECMABMNCDEFCGR@DG@DCMLQ EFCGAFL FHG@D BP]\DSGBAGD AB NFSMGDJ AL ML
AJDLGAHADJ ~EDSAMNƒNFFJ bMeMCJ €CDM[…DSMPBD G@D MEECMABDCAB LFGM BPCUDQFC_@D FCB@D IM^DB LF KPMCMLGDDB_DaECDBB FC
AIENADJ_ CDKMCJALK G@AB JDGDCIALMGAFL[
s[?@D MEECMABDCRANNLFGKAUDGDBGAIFLQ FCMEEDMCAL SFPCG]DSMPBD@DFCB@DIMJD ML MEECMABMNFHG@DECFEDCGQ AL cPDBGAFL_
PLNDBB BEDSAHAS MCCMLKDIDLGB GF JF BF @MUD ]DDL IMJD ]DHFCD@MLJ_FCMB FG@DCRABD CDcPACDJ ]Q NMR[
u[?@D MEECMABDC@MB LFGDJ AL G@AB MEECMABMNCDEFCGMLQ MJUDCBD SFLJAGAFLB VBPS@ MB LDDJDJ CDEMACB_JDGDCAFCMGAFL_G@D
ECDBDLSD FH@MeMCJFPB RMBGDB_GFaAS BP]BGMLSDB_DGS[ZF]BDCUDJ JPCALK G@D ALBEDSGAFL FHG@D BP]\DSGECFEDCGQ FCG@MG@D FC
B@D ]DSMID MRMCD FHJPCALK G@D CDBDMCS@ ALUFNUDJ AL EDCHFCIALK G@D MEECMABMN[XLNDBB FG@DCRABD BGMGDJ AL G@AB MEECMABMN
CDEFCG_G@D MEECMABDC@MB LF ^LFRNDJKD FHMLQ @AJJDL FCPLMEEMCDLGE@QBASMNJDHASADLSADB FCMJUDCBD SFLJAGAFLB FHG@D
ECFEDCGQ VBPS@ MB_]PGLFGNAIAGDJ GF_LDDJDJ CDEMACB_JDGDCAFCMGAFL_G@D ECDBDLSD FH@MeMCJFPB RMBGDB_GFaAS BP]BGMLSDB_
MJUDCBD DLUACFLIDLGMNSFLJAGAFLB_DGS[Z G@MGRFPNJ IM^D G@D ECFEDCGQ NDBB UMNPM]ND_MLJ @MB MBBPIDJ G@MGG@DCD MCD LF BPS@
SFLJAGAFLB MLJ IM^DB LF KPMCMLGDDB FCRMCCMLGADB_DaECDBB FCAIENADJ[?@D MEECMABDCRANNLFG]D CDBEFLBA]ND HFCMLQ BPS@
SFLJAGAFLB G@MGJF DaABGFCHFCMLQ DLKALDDCALK FCGDBGALK G@MGIAK@G]D CDcPACDJ GF JABSFUDCR@DG@DCBPS@ SFLJAGAFLB DaABG[
…DSMPBD G@D MEECMABDCAB LFGML DaEDCGAL G@D HADNJ FHDLUACFLIDLGMN@MeMCJB_G@AB MEECMABMNCDEFCGIPBGLFG]D SFLBAJDCDJ MB
ML DLUACFLIDLGMN MBBDBBIDLG FH G@D ECFEDCGQ[
†[?@D MEECMABDC@MB ]MBDJ @AB FC@DCMEECMABMNCDEFCGMLJ UMNPMGAFL SFLSNPBAFL HFCML MEECMABMNG@MGAB BP]\DSGGF BMGABHMSGFCQ
SFIENDGAFL_CDEMACB_FCMNGDCMGAFLB FL G@D MBBPIEGAFL G@MGG@D SFIENDGAFL_CDEMACB_FCMNGDCMGAFLB FHG@D BP]\DSGECFEDCGQ RANN
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bUTKL Q_NOb]L_LVTR QV UPST̀Pa^RNLSQUQS TLO_R[\QWLVTQUQLW PVW OLNbOTLW TKL NKjRQSPaWLUQSQLVSQLR TKPTSb`aW PUULSTTKL
aQ]PhQaQTj^ Rb`VWVLRR^ bO RTO`ST̀OPaQVTLXOQTj bU TKL NObNLOTj[
k[\NLOUbO_LW TKQR PNNOPQRPaQV PSSbOWPVSL cQTK TKL OLe`QOL_LVTR bUTKL lVQUbO_ mTPVWPOWR bUnObULRRQbVPaMNNOPQRPa
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q[\WL]LabNLW _j bNQVQbV bUTKL_POdLT]PàLbUTKLOLPaNObNLOTjTKPTQRTKLR`hiLSTbUTKQROLNbOThPRLW bV TKLRPaLR
Sb_NPOQRbV PNNObPSK Tb ]PàL[\KP]L PWLe`PTL Sb_NPOPhaL _POdLTWPTP Tb WL]LabN P OLaQPhaL RPaLR Sb_NPOQRbV PNNObPSK
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t[\OLRLPOSKLW^]LOQUQLW^PVPajsLW^PVW OLNbOTLW bV TKL NOQbORPaLR bUTKL Sb_NPOPhaL RPaLR UbOP _QVQ_`_ bUbVL jLPONOQbO
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RLO]QSLR^TPgPRRLRR_LVTOLSbOWR^N`haQSaPVWOLSbOWRPVWbTKLOR`SKWPTPRb`OSLRUbOTKLPOLPQVcKQSKTKLNObNLOTjQRabSPTLW[
Zk[\bhTPQVLW TKL QVUbO_PTQbV^LRTQ_PTLR^PVW bNQVQbVR ÙOVQRKLW hj bTKLONPOTQLR PVW LgNOLRRLW QV TKQR PNNOPQRPaOLNbOTUOb_
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Zt[\RTPTLW QV TKQR PNNOPQRPaOLNbOT_j bcV NLORbVPa^`VhQPRLW^PVW NObULRRQbVPaPVPajRQR^bNQVQbVR^PVW SbVSàRQbVR^cKQSK
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SbVWQTQbVLW bV PVj PXOLL_LVTbO`VWLORTPVWQVX^cOQTTLV bObTKLOcQRL^TKPT\cb`aW OLNbOTzbONOLRLVTPVPajRQR R`NNbOTQVX{P
NOLWLTLO_QVLW RNLSQUQS ]PàL^P NOLWLTLO_QVLW _QVQ_`_ ]PàL^P OPVXL bOWQOLSTQbV QV ]PàL^P ]PàL TKPTUP]bOR TKL SP`RL bU
PVjNPOTj^bOTKLPTTPQV_LVTbUPRNLSQUQS OLR`aTbObSS`OOLVSLbUPRNLSQUQSR`hRLe`LVTL]LVTzR`SK PR PNNOb]PabUPNLVWQVX
_bOTXPXL abPV PNNaQSPTQbV{[
Zw[\NLORbVPaaj NOLNPOLW PaaSbVSàRQbVRPVW bNQVQbVRPhb`TTKLOLPaLRTPTL TKPTcLOL RLTUbOTK QV TKQR PNNOPQRPaOLNbOT[\U\
OLaQLW bV RQXVQUQSPVTOLPaNObNLOTj PNNOPQRPaPRRQRTPVSL UOb_ PVj QVWQ]QW`PabOQVWQ]QW`PaR QV TKL NLOUbO_PVSL bUTKQR PNNOPQRPa
bOTKL NOLNPOPTQbV bUTKQR PNNOPQRPaOLNbOT^\KP]L VP_LW R`SK QVWQ]QW`PazR{PVW WQRSabRLW TKL RNLSQUQS TPRdR NLOUbO_LW QV TKQR
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