Ex-Kauai lieutenant charged with theft, money laundering

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HONOLULU (AP) — A former lieutenant for the Kauai Police Department has been arrested on charges that she stole $75,000 in federal grant money from the department.

HONOLULU (AP) — A former lieutenant for the Kauai Police Department has been arrested on charges that she stole $75,000 in federal grant money from the department.

The FBI arrested Karen Kapue Thursday on Kauai. She was flown to Honolulu and brought before a grand jury on four counts of money laundering and theft from an organization receiving federal funds. She pleaded not guilty to the charges and was released from custody on $50,000 bail.

Court documents say Kapue, a 16-year veteran of the department, stole grant money from the U.S. Drug Enforcement Administration. She is accused of taking $25,000 on three occasions in 2013 and 2014, for a total of $75,000.

Documents also allege that Kapua “did knowingly engage and attempt to engage in a monetary transaction” by initiating “a wire transfer of $11,457.98 to pay off personal debts, knowing that such funds had been derived from a specified unlawful activity.”

According to a Kauai County spokeswoman, “as a result of these allegations, internal protocols and procedures have already been reviewed and updated to assist in preventing any misuse of funds.”

Kauai police Chief Darryl Perry said Kapua was no longer a member of the department as of Dec. 6. He said the department is cooperating with the FBI during its investigation.

“As with any arrest, all individuals are presumed innocent unless and until proven guilty in a court of law,” said Perry.