Couple Pleads Guilty In $2.5 MILLION Fraud Scheme Involving Trucking Company
Honolulu, Hawaii – A husband and wife have each pleaded guilty for their part in carrying out an investment fraud scheme that lasted more than 5 years.
According to the U.S. Department of Justice, Neil Kauhi, 51, engaged in an investment scheme whereby promising 20 victims he would invest their money, but instead used the money for personal use.
He pleaded guilty last week in federal court to one count of wire fraud.
According to court documents, Kauhi told victims he was investing their money in a trucking company, along with other investments such as real estate, precious metals and a solar energy company.
Neil Kauhi took in more than $2.5 million, according to U.S. Attorney for the District of Hawaii Kenji M. Price.
Kauhi diverted most of the money to his and his family’s own personal use, according to Price.
Such expenditures included: travel, rent and utilities, restaurants, vehicles, retail purchases, entertainment, and a daughter’s wedding, as well as into other unauthorized investments.
Kauhi’s wife, Lyndie, 49, pleaded guilty to one count of misprision of a felony.
U.S. Prosecutors say Lyndie was both aware of the her husband’s scheme and made “misleading statements and material omissions” to FBI investigators about her activities to conceal the couple’s plot.
Further, investigators say Lyndie participated in the fraud scheme and personally deposited and transferred victims’ money into the couple’s personal accounts.
Neil Kauhi faces a maximum prison term of 20 years, while Lyndie faces a maximum prison term of 3 years.
As part of their plea agreement, both Lyndie and Neil Kauhi have agreed to pay restitution for the fraud losses to victims.
Neil Kauhi has also agreed to a forfeiture money judgment of $2,981,191.64.
Federal authorities have already seized approximately $581,618.51 in funds in connection with the sale of real property associated with Neil Kauhi.
Both Lyndie and Neil Kauhi are detained without bail until their sentencings on October 17, 2019.