Konawaena High softball coach to serve 6 months jail

KEALAKEKUA — A Konawaena High School softball coach will serve six months in jail after pleading guilty to theft and failure to pay taxes in connection to a real estate business she operated from 2010-14.

Shellie Grace, 41, appeared before Judge Melvin Fujino Friday morning in the 3rd Circuit Court for sentencing. Along with jail time, she will be required to pay approximately $130,000 in restitution to the 19 individuals affected by her business dealings while she operated the now defunct Elite Property Management Services, LLC.

Her attorney, John Knoebber, asked the sentencing fall in line with the pre-sentencing report drafted by the probation department, which recommended one year jail time with credit served for all but 90 days.

“Mrs. Grace has no prior record and she’s taking responsibility for her actions,” Knoebber said.

Knoebber added they were willing to do 60 days of electronic monitoring after she was released.

“Mrs. Grace works two jobs and is currently seeking additional employment,” he said.

Knoebber said he thinks it makes more sense to have Grace forego more jail time so she can start making payments to the victims.

Grace pleaded guilty to one count first-degree theft, a Class B felony, and five misdemeanor counts of willful failure to file tax returns as part of a plea agreement during a Jan. 26 hearing.

The Kailua-Kona woman was indicted in October 2016. In the 13-count indictment filed against her and her company, prosecutors alleged taxes were not paid from 2010-14, owners of the properties she was managing were not reimbursed and general excise taxes and/or transient accommodation taxes for some of the properties were not paid.

Ricky Roy Damerville, deputy prosecutor, said Grace was having financial difficulties in 2006 before she stared her business.

“I don’t believe she intended to steal when she started the company,” Damerville said.

Damerville addressed Grace’s involvement at Konawaena High as a softball coach. He commended all the coaches for the job they’ve done to help the school’s athletics.

“I respect and anticipated she would get glowing letters of references,” Damerville said of Grace. “But a lot of these victims are elderly people.”

Damerville said Grace is not the only real estate agent in Hawaii who’s done this.

“I think she needs to go to jail,” Damerville said. “However great your community efforts have been, we need to set an example.”

Grace read a prepared statement before the court where she apologized for breaking trust and taking things that didn’t belong to her.

“I kindly ask forgiveness…I will do my best to pay all monies back,” she said.

Grace also apologized to her husband, children, family and friends, who she said have stood by her side throughout this ordeal.

Fujino spoke to Grace. He said her actions affect not just her, but the people and youth who look up to her in the community.

“Do you think they look up to as a head coach? What kind of example are you setting?” Fujino asked Grace.

The judge also asked, “did you think about how your actions would affect the way people, who don’t live here, look at the state of Hawaii?”

Fujino handed down a six-month jail sentence in which she is to report June 1, allowing her the opportunity to support the softball team as it goes through the playoffs and start working on paying off restitution to the victims.

The team played Friday and will play again today in Hilo. The first scheduled playoff game is April 14.

Grace is on probation until she reports to jail. Afterward, she will be on probation for four years and required to complete 300 hours of community service.

Damerville said the sentencing is in line with the plea agreement the judge distributed.

“I don’t believe for a minute there’s a pile of money hidden somewhere,” Damerville said.

The prosecutor said Grace probably intended to build and sell. He added she most likely intended to pay the money back to her clients.

“The state doesn’t think she’s a bad person,” Damerville said of Grace. “I hope it doesn’t affect her (coaching) program.”

Knoebber said he wasn’t going to second guess the judge’s decision.

Outside the courthouse, Grace declined to comment about the sentencing.