Kukong Khalye Hilbert
Former Palau Housing Authority (PHA) employee Kukong Khalye Hilbert was sentenced last Tuesday to a year in prison and 10 years on probation for stealing thousands of dollars from the housing authority clients.
The sentence, handed down by Associate Justice Honora E. Remengesau- Rudimch in the Trial Division of the Supreme Court, follows Hilbert’s October 26 guilty plea to two counts of second-degree theft under a negotiated agreement. Two additional theft counts were dismissed in exchange for her plea.
Under the sentencing terms, Hilbert faces 24 months of imprisonment with 12 months suspended, ordered to report to custody on November 1, 2026. She must also complete 10 years of supervised probation, perform 200 hours of community service, pay an $800 fine within one year, and undergo screening and treatment at the Division of Behavioral Health.
Court documents show Hilbert stole an aggregate of $7,281.98 between January 1, 2023, and March 30, 2025, from 19 Palau Housing Authority clients. The scheme was uncovered in late March 2025 after Executive Director Jovalyn I. Koshiba contacted the Bureau of Public Safety’s Division of Criminal Investigation regarding client complaints.
According to an affidavit by Detective Lieutenant Harvey Takeshi, clients reported Hilbert demanding unauthorized payments for home fire insurance policies, direct loan installments, application fees, and bidding processing fees. An initial report from client Wyzer Seklii prompted an inquiry with Melekau Insurance Company, which confirmed it had never received an application, quote, or payment on Seklii’s behalf. Housing officials reiterated that the authority does not handle fire insurance policies, which are managed directly between clients and the insurer.
Investigators detailed several direct cash collections from clients across various locations. In one instance, Yoko K. Woodcock paid Hilbert a total of $2,482.55 in cash across multiple home loan installments between May and August 2024, receiving unauthorized receipts. In another, Hilbert collected $1,426 in cash from Remeliik Ngchar at his residence, which included $1,000 for an initial loan payment and $426 for fire insurance.
Hilbert provided a statement to investigators admitting to the actions, explaining she “was going through financial hardship and admitted purchasing a receipt book at West Office Supply and used it to issue fake receipts to PHA clients upon cash payments”.
Justice Rudimch ordered Hilbert to pay restitution to the victims in accordance with the schedule outlined in the plea agreement. Hilbert’s $1,000 cash bail will be credited toward restitution, accompanied by an immediate $3,000 payment following the hearing, with the remaining balance satisfied through bi-weekly installments of $100. If Hilbert satisfies the full restitution amount before completing her 12-month jail term, she may petition the court for early release subject to an 8:00 p.m. to 6:00 a.m. daily curfew. Work release may also be authorized upon verification of employment.
The court scheduled a status report for February 26, 2027, to review her compliance.
Counsel in the case included Assistant Attorney General L. David representing the Republic of Palau, and Acting Public Defender M. Lomaloma representing Hilbert. Assistant Attorney General Hila Asanuma also appeared on earlier filings for the Republic.