Hawaii AG Indicts Accountant for $200k Theft, Forgery, and Fraud

AG: Hawaii News Releases

Filed February 27th, 2026

Detected March 18th, 2026

Summary

The Hawaii Attorney General's office has secured a grand jury indictment against Kristen Keiki O Akua Krael and three others for alleged theft, forgery, and fraud totaling over $200,000. The charges stem from Krael's alleged misuse of her employer's financial information while working as an accountant.

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What changed

The Hawaii Attorney General's office announced the indictment of Kristen Keiki O Akua Krael and three co-defendants on multiple felony charges, including computer fraud, theft, and forgery. The indictment alleges that Krael, an accountant for three local businesses, defrauded these companies of over $200,000 by unauthorizedly transferring funds and forging checks. The case, State v. Kristen Keiki O Akua Krael, et al., docket number 1CPC-26-0000261, involves charges ranging from first-degree computer fraud and theft to second-degree forgery and fraudulent credit card use.

This enforcement action highlights the severe consequences of financial misconduct by trusted professionals. Regulated entities, particularly those in financial services and accounting, should review their internal controls and employee access to sensitive financial data. While no specific compliance deadline is mentioned for other entities, the potential penalties for the indicted individuals include significant prison time and substantial fines, underscoring the importance of robust compliance programs to prevent and detect such fraudulent activities.

What to do next

Review internal controls for financial data access and transaction authorization.
Reinforce employee training on fraud prevention and ethical conduct.
Audit financial records for any suspicious or unauthorized transactions.

Penalties

Computer Fraud in the First Degree: up to 20 years in prison and a fine not exceeding $50,000. Theft in the First Degree: up to 10 years in prison and/or a $25,000 fine. Theft in the Second Degree, Forgery in the Second Degree, and Fraudulent Use of Credit Card: up to five years in prison and/or a $10,000 fine.

Source document (simplified)

STATE OF HAWAIʻI KA MOKU ʻĀINA O HAWAIʻI JOSH GREEN, M.D.GOVERNOR KE KIAʻĀINA DEPARTMENT OF THE ATTORNEY GENERAL KA ʻOIHANA O KA LOIO KUHINA ANNE LOPEZ ATTORNEY GENERAL DEPARTMENT OF THE ATTORNEY GENERAL SECURES GRAND JURY INDICTMENT AGAINST THEFT AND FORGERY RING News Release 2026-10 FOR IMMEDIATE RELEASE February 27, 2026 HONOLULU – Kristen Keiki O Akua Krael was arrested today following her indictment by an Oʻahu Grand Jury on multiple felony charges, including computer fraud, theft, forgery and fraudulent use of a credit card. On February 24, 2026, the grand jury indicted Krael 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 Credit Card. The Grand Jury also indicted: • Aaron Jeff Kau for four counts of Forgery in the Second Degree and two counts of Theft in the Second Degree; • Jaron Tsutomu Gar Wo Hung for three counts of Forgery in the Second Degree and two counts of Theft in the Second Degree; and • Jessica Rosemary Rothstein for one count of Forgery in the Second Degree and one count of Theft in the Second Degree.

Department of the Attorney General News Release 2026-09 The indictment alleges that Krael, while employed as an accountant for three local businesses, used the companies’ financial information without authorization to forge checks and transfer funds from company credit cards to herself via online financial tools. She is further alleged to have provided forged checks to Aaron Kau, Jaron Hung, Jessica Rothstein and others to cash, resulting in losses to the three businesses exceeding $200,000. Computer Fraud in the First Degree is a class A felony punishable by up to 20 years in prison and a fine not exceeding $50,000. Theft in the First Degree is a class B felony punishable by up to 10 years in prison and/or a $25,000 fine. Theft in the Second Degree, Forgery in the Second Degree, and Fraudulent Use of Credit Card are class C felonies punishable by up to five years in prison and/or a $10,000 fine. Attorney General Anne Lopez stated, “When someone entrusted with access to sensitive financial information exploits that access for personal gain, it harms businesses, employees and our broader community. We will continue working closely with our law enforcement partners to investigate and prosecute complex financial crimes.” The investigation was conducted by the Department of the Attorney General’s Investigations Division and the Honolulu Police Department. U.S. Department of Homeland Security Investigations, the Diplomatic Security Service and U.S. Customs and Border Protection assisted in Krael’s arrest. The case, State v. Kristen Keiki O Akua Krael, Aaron Jeff Kau, Jaron Tsutomu Gar Wo Hung, and Jessica Rosemary Rothstein, 1CPC-26-0000261 is being prosecuted by the Criminal Justice Division of the Department of the Attorney General. Criminal charges are only allegations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. # # # Media contacts: Dave Day Special Assistant to the Attorney General Office: 808-586-1284 Email: david.d.day@hawaii.gov Web: http://ag.hawaii.gov

Department of the Attorney General News Release 2026-09 Toni Schwartz Public Information Officer Hawai‘i Department of the Attorney General Office: 808-586-1252 Cell: 808-379-9249 Email: Toni.E.Schwartz@hawaii.gov Web: http://ag.hawaii.gov