A federal jury in Honolulu has found Michelle Malufau, 47, of Laie, Oahu, guilty of bankruptcy fraud related to the Chapter 7 bankruptcy she filed in 2011.
According to the evidence presented at trial, 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 over $1 million of debt through that proceeding.
The jury convicted Malufau 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.
Malufau faces up to five years in prison on each charge when she is sentenced by Senior United States District Judge Helen Gillmor on February 27, 2014.
The investigation that resulted in the charges against Malufau was 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.
Malufau’s conviction marks a significant blow to those who attempt to deceive the court system and take advantage of the bankruptcy process for personal gain.
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Key Facts
- State: Hawaii
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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