Wednesday, March 6, 2002

U.S. judge considers dismissal
of Lindsey charges

A statute of limitations question
has come up in her fraud case

Star-Bulletin staff

U.S. District Judge David A. Ezra will rule later on whether the bankruptcy fraud case against former Kamehameha Schools trustee Lokelani Lindsey should be dismissed because the statute of limitations has run out.

The judge said he would file a ruling in the federal court in Las Vegas, where the case will be tried the week of March 25.

Lindsey and her sister, Marlene Lindsey, were indicted in December 2000 on charges of bankruptcy fraud, conspiracy and money laundering, stemming from business dealings and a bankruptcy case filed by Marlene.

Marlene Lindsey pleaded guilty Feb. 25 to a charge of filing a false income tax return.

Lokelani Lindsey's attorney David Chesnoff told the judge the bankruptcy fraud charge, which carries a five-year statute of limitations, should be dismissed because it was not filed until December 2000, more than five years after Lindsey's bankruptcy was discharged in August 1995.

Assistant U.S. Attorney Les Osborne Jr. said the August 1995 final decree was entered erroneously, and Lindsey's bankruptcy was reopened and actually closed Nov. 12, 1996, within the statute of limitations.

Chesnoff said that if the bankruptcy fraud charge is dismissed, the other charges also should be dismissed because they are based on the fraud charge.

"Money laundering is an independent crime," Ezra said.

E-mail to City Desk


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