The Latest: Guilty plea in Japan financial fraud case

HONOLULU – The Latest on a federal case of defrauding Japanese English-language students of more than $200,000 (all times local):

12:50 p.m.

A man who taught English at a well-known chain of foreign language schools in Japan is pleading guilty to defrauding his students out of more than $200,000.

Rick Mikaele pleaded guilty Tuesday to mail fraud and impersonating a federal officer or employee.

Prosecutors say the Nova teacher told two students he could get them a high rate of return by putting their money into First Hawaiian Bank certificates of deposit.

He sent the students fake bank statements and fake letters to make it look like the U.S. Internal Revenue Service was demanding $7,000 in taxes.

He’s scheduled to be sentenced in June, but defence attorney Steve Cedillos says his client needs time to raise the $236,000 restitution. Cedillos says Mikaele travels between Hawaii and Japan, where he and his wife run a concert promotion business.

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10:20 a.m.

A Hawaii man who taught English at a well-known chain of foreign language schools in Japan is expected to plead guilty to defrauding his students out of more than $200,000.

Rick Mikaele pleaded not guilty to wire fraud in July and is scheduled to change his plea Tuesday.

According to an indictment, the Nova teacher told two students he could get them a high rate of return by putting their money into a First Hawaiian Bank certificate of deposit.

Prosecutors say he sent the students fake bank statements and sent a fake letter to make it look like the U.S. Internal Revenue Service was demanding $7,000 in taxes for profit earned on the money.

Mikaele’s defence attorney declined to comment before Tuesday’s hearing in federal court in Honolulu.