Two former top city officials have reportedly reached plea deals with federal prosecutors ahead of their scheduled trial that had been set to get underway in March.

The two–former corporation counsel Donna Leong, and former Police Commission chairman Max Sword, also a prominent former lobbyist for the Outrigger hotel chain–were indicted in December 2021 for allegedly conspiring to obtain the funds for a secretly negotiated deal that would pay then-Police Chief Louis Kealoha $250,000 in exchange for his agreement to step down. The conspiracy charge, a felony, carries a maximum sentence of five years in prison.

However, Hawaii News Now has reported the two have agreed to plead guilty to a misdemeanor conspiracy charge, pay a fine of $100,000 each, and spend a year on supervised release.

A third man, former managing director Roy Amemiya, reportedly agreed to a deferred prosecution deal providing the charge will be dropped if he completes two years of supervised release and pays a $50,000 fine.

According to the indictment, Leong and Sword sought to conceal details of the privately negotiated payout to Kealoha, to bypass the requirement for city council approval for a payment of that size, and to pressure the police department to provide the funds from its own budget, with the understanding HPD would later falsely claim that it required additional funding due to the costs of recruiting additional officers. HPD officials at the time refused, and instead recorded several incriminating telephone calls regarding the Kealoha payment, which became the basis for the criminal charges.

In addition, Leong was charged with five counts of making false statements to the FBI during their investigation. Those charges will be dropped as part of the deal.

The plea agreements obviate the need for a long, complex, and costly trial in the case. Undoubtedly the incoming administration of President Donald Trump, with its focus on cutting federal expenditures, had to have been a factor considered in reaching the plea deal.

Leong was represented by attorneys Thomas Otake, who had been lead counsel for the late Michael J. Miske, Jr., until he was removed from the case due to legal conflicts, and Lynn Panagakos, who served as co-counsel in Miske’s defense with Reno-based Michael Kennedy, who replace Otake.

See:

“2 Honolulu Officials To Plead Guilty In Kealoha Payout, Avoiding Jail Time,” Civil Beat, 2-3-2025