Hawaii Woman Convicted of Bankruptcy Fraud

A United States District Court jury has found Michelle Malufau, 47, guilty of bankruptcy fraud related to a Chapter 7 bankruptcy that she filed in 2011.  The verdict was received at the close of a four day trial and less than an hour of deliberation.  Malufau is convicted of making false statements on documents filed in 2011 and lying under oath.  She faces a maximum sentence of up to five years in prison on each charge when she is sentenced on February 27, 2013 by Senior United States District Judge Helen Gillmor.

The evidence presented at the trial showed that Malufau fraudulently concealed at least three assets that she owned and/or controlled during her 2011 bankruptcy including: a house on the North Shore of Oahu, which had over $322,000 in equity in it; a bank account, and a rental home.  Malufau received discharge of debt that totaled more than a $1 million in this bankruptcy proceeding.

Michelle Malufau is the wife of a former guard at Halawa Correctional Facility, Feso Malufau, who was accused in a federal racketeering indictment of receiving bribes.

This investigation was conducted by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.  Assistant United States Attorneys Michael Nammar and Andrew Hatton prosecuted the case.

Leave a Reply

Your email address will not be published. Required fields are marked *