Neil Kauhi, Wire Fraud, Hawaii 2019

A multi-million dollar investment scheme has come crashing down in Hawaii, with a husband and wife team pleading guilty to their involvement.

Neil Kauhi, 51, pleaded guilty to one count of wire fraud in federal court, facing a maximum term of imprisonment of 20 years. His wife, Lyndie Kauhi, 49, pleaded guilty to one count of misprision of a felony, with a maximum term of imprisonment of three years.

Both Lyndie and Neil Kauhi are currently being held without bail until their sentencing on October 17, 2019.

According to court documents, Neil Kauhi executed an investment fraud scheme between October 2012 and April 2018, involving over 20 victims. He took in more than $2.5 million by promising these victims that their money would be invested in precious metals, real estate, a trucking company, and a solar energy company.

Instead of directing the victims' funds into the promised investments, Kauhi diverted most of the money to his and his family's own personal use, including expenditures on travel, rent and utilities, restaurants, vehicles, retail purchases, entertainment, and a daughter's wedding, as well as into other unauthorized investments.

Lyndie Kauhi knew about her husband's investment fraud scheme, but she did not report it to federal authorities. Instead, she took steps to conceal the fraud scheme, depositing and transferring victims' funds into the Kauhi's personal bank accounts.

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.

The case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.

Defendant: Neil Kauhi, Lyndie Kauhi

Criminal Charges: Wire Fraud, Misprision of a Felony

City and State: Honolulu, Hawaii

Exact Date: October 17, 2019

Sentence or Outcome: Neil Kauhi: up to 20 years, Lyndie Kauhi: up to 3 years

Dollar Amounts: $2.5 million, $2,981,191.64, $581,618.51

Source: https://www.justice.gov/usao-hi/pr/husband-and-wife-plead-guilty-involvement-multi-million-dollar-investment-fraud-scheme