Laie Woman Sentenced to 12 Months’ Imprisonment for Bankruptcy Fraud
|U.S. Attorney’s Office February 27, 2014|
HONOLULU—Senior United States District Judge Helen Gillmor today sentenced Michelle Malufau, age 47, of Laie, Oahu, to 12 months and one day of imprisonment, 400 hours of community service, three years’ supervised release, a $200 special penalty assessment, and restitution to her various creditors in the amount of $33,252.14 for two counts of bankruptcy fraud related to the Chapter 7 bankruptcy that she filed in 2011. During today’s sentencing hearing, Judge Gillmor found that Malufau had repeatedly lied when she testified before the jury during her criminal trial. A jury convicted Malufau on November 12, 2013, of making false statements under penalty of perjury on documents filed in that 2011 bankruptcy and also of testifying falsely under oath at a hearing in that same proceeding.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial showed that Malufau knowingly and fraudulently concealed at least three assets that she owned and/or controlled during her 2011 bankruptcy: a house on the North Shore of Oahu, which had over $322,000 in equity in it; a bank account; and rental income. Malufau received a discharge of more than $1 million of debt through that proceeding.
The charges resulted from an investigation conducted by the Internal Revenue Service-Criminal Investigation, with assistance from the Federal Bureau of Investigation. Assistant United States Attorneys Michael Nammar and Andrea Hattan handled the prosecution.