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Posted on: Saturday, January 6, 2001

Lindsey sisters plead not guilty

By David Waite
Advertiser Staff Writer

Former Bishop Estate trustee Lokelani Lindsey and her sister, Marlene Lindsey, pleaded not guilty in federal court yesterday to five felony charges, including conspiracy to commit bankruptcy fraud and money laundering.

Federal Magistrate Barry Kurren set a March 6 trial date for the two women and allowed them to remain free on $25,000 signature bonds.

Lokelani Lindsey was represented at the arraignment by attorney William Harrison, while William Domingo, a deputy federal public defender, represented Marlene Lindsey.

Kurren told Marlene Lindsey that he had concerns about whether she was entitled to be represented at no cost by a public defender and said he may ask her to reimburse the government if it is shown she has sufficient financial resources.

The charges against the Lindseys stem from a declaration of bankruptcy Marlene Lindsey filed in 1995.

The indictment alleges the women conspired to hide assets from a bankruptcy trustee, and from creditors to whom Marlene Lindsey’s business, Marlene’s Hairstyling, owed money.

The bankruptcy was declared a "no-asset case," and creditors received no payments. The indictment claims Marlene Lindsey held 100 shares of stock, worth $100,000 when she filed for bankruptcy Jan. 20, 1995, but failed to disclose the holding when she met with creditors a month later.

Marlene Lindsey transferred the stock to Lokelani Lindsey on Dec. 27, 1995, who then transferred it to a third person, hoping the stock sale would go unnoticed by the bankruptcy trustee, according to the indictment.

The money was then given to a fourth person, who set up an account for the purpose of paying Marlene Lindsey for the stock, and on Feb. 13, 1996, Lokelani Lindsey withdrew $35,000 from the account in the form of a cashier’s check, according to the indictment.

The Lindseys declined comment following their court appearance yesterday, but Harrison described Lokelani Lindsey as "distraught."

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