Woman sentenced for stealing $30K from Hawaii County

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HILO — A former Hawaii County employee who embezzled more than $30,000 from the Department of Finance Vehicle Registration and Licensing Division will serve a short jail sentence and her conviction will be wiped clean if she stays out of trouble for five years.

Hilo Circuit Judge Glenn Hara on Tuesday granted 46-year-old Mary Leinaala DeMello of Pepeekeo a deferred acceptance of her no-contest plea to felony theft.

DeMello, who has no prior criminal record, will be allowed to serve her 30-day jail sentence in two 15-day increments during vacation time from her job with Child and Family Service. She also was ordered to pay back $30,818.82 and will be allowed to make minimum restitution payments of $100 per month.

The judge also ordered DeMello to perform 300 hours of community service.

DeMello pleaded no contest in January to first-degree theft, a Class B felony punishable by up to 10 years in prison. In return for her plea, prosecutors dropped a computer fraud charge, a Class A felony that could have brought DeMello a 20-year prison term upon conviction.

The money was stolen between Aug. 1, 2009, and July 28, 2011, according to the July 9, 2014, indictment by a Hilo grand jury.

DeMello’s attorney, Kanani Laubach, asked Hara to allow the plea deferral for her client, saying DeMello needs it to keep her job with the nonprofit social service agency and repay the county.

“It’s my understanding if she does have a felony conviction on her record, she would most likely be let go, as that program does get federal grant money,” Laubach said.

Laubach also asked the court to not impose jail time or to suspend any jail sentence.

“This will allow her to use her skills — she does have a degree — to help the community and pay back the community for what happened,” Laubach said.

Deputy Prosecutor Kimberly Angay argued against deferring DeMello’s no contest plea.

“Defendant was in a position of trust working for the county, handling the county’s money. Over a two-year period, she committed this plan to slowly steal quite a big sum of money from the county. It was calculated criminal activity, and the state believes she deserves a criminal conviction on her record,” Angay said.

DeMello addressed the court in a barely audible voice, and much of what she told the judge couldn’t be heard from the courtroom gallery.

“I just want to apologize for what I did,” DeMello said. “I have no reason. … I do realize it was a big amount of money. At that time, I wasn’t thinking. I wish I could say I was on drugs, but I wasn’t.”

Hara told DeMello her actions “really hurt the community (and) really hurt the people around you.”

“What you did, when it was discovered, I think it cast a shadow over the whole operation, not just you, until they found out what had happened,” the judge said. “And these honest, hardworking people, they were suspected of taking money, too, because of what you did.

“And as to the $30,000 of restitution, Ms. DeMello, in your mind, have you figured out who the victims are?”

“The county and my family,” she answered.

“The county is just a name,” Hara replied. “Basically, it’s made up of people. The county doesn’t get hurt. People get hurt (because of) things that the money was to rightfully go for. It wasn’t there. So it’s all your friends, your neighbors, those are your victims.”

The judge said he “gave serious consideration to the recommendation” to not grant the deferral.

“However, I think it is in the long-range interest of the community that you be granted a deferral, that you be allowed to continue to work, and hopefully, apply those earnings in a meaningful manner to pay back the people you hurt,” Hara said.

Email John Burnett at jburnett@hawaiitribune-herald.com.