An Oʻahu grand jury on Wednesday indicted four people in what prosecutors describe as a coordinated theft-and-forgery ring, and one of the suspects was arrested shortly after the indictment came down. At the center of the case, officials say, is an accountant who allegedly used insider access to local businesses’ financial information to forge checks, reroute money and fuel a scheme that now includes computer fraud, theft and dozens of forgery counts.
According to a news release from the Hawaiʻi Department of the Attorney General, Kristen Keiki O Akua Krael was indicted on three counts of computer fraud in the first degree, three counts of theft in the first degree, one count of theft in the second degree, 15 counts of forgery in the second degree and three counts of fraudulent use of a credit card. The release states that Krael was arrested after the indictment and that prosecutors in the department’s Criminal Justice Division are handling the case.
Other Defendants and Counts
The grand jury also returned indictments against Aaron Jeff Kau, Jaron Tsutomu Gar Wo Hung and Jessica Rosemary Rothstein. As reported by Hawaii News Now, Kau faces four counts of forgery in the second degree and two counts of theft in the second degree. Hung was indicted on three counts of forgery in the second degree and two counts of theft in the second degree, and Rothstein was charged with one count of forgery in the second degree and one count of theft in the second degree. Prosecutors allege Krael supplied forged checks to the three co-defendants so they could cash them.
Investigation and Estimated Losses
The Attorney General’s office says the alleged scheme hit three businesses with combined losses of more than $200,000. The news release notes that the investigation was led by the Department’s Investigations Division and the Honolulu Police Department, with support from U.S. Homeland Security Investigations, the Diplomatic Security Service and U.S. Customs and Border Protection. “When someone entrusted with access to sensitive financial information exploits that access for personal gain, it harms businesses, employees, and our broader community,” Attorney General Anne Lopez said in the release.
How Prosecutors Say the Scheme Worked
According to Hawaii News Now, prosecutors say Krael, working as an accountant for three local businesses, tapped into company account information without authorization to forge checks and shift funds using online financial tools. The forged checks were then allegedly passed to others to cash. Officials say that pattern of exploiting internal access and recruiting accomplices mirrors tactics seen in other financial crime cases on Oʻahu, where schemes can run quietly until someone finally notices the numbers do not add up.
Broader Pattern on Oʻahu
Investigators say this is not the first time large-scale forgery operations have zeroed in on local businesses. Coverage of a 2024 case involving roughly $1.5 million in forged checks underscored how long such scams can run under the radar before anyone sounds the alarm. Three suspects nabbed in $1.5 million Honolulu forgery ring reporting highlighted the strain these schemes place on small companies and their employees, who often end up scrambling to recover financially and emotionally once the dust settles.
Charges and Penalties
Under Hawaii law, computer fraud in the first degree is a class A felony that can carry a sentence of up to 20 years in prison. Theft and forgery counts charged in this case are classified as class B or C felonies, which have lower maximum penalties. The relevant statutes are codified in the Hawaii Revised Statutes and summarized online; see the Hawaii Revised Statutes for the statutory language…