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During a hastily called hearing Friday, Michael Miske Jr.’s daughter-in-law admitted she had been a member or associate of a criminal organization that was controlled and directed by the accused racketeering boss.

Delia Fabro-Miske, 29, pleaded guilty to a single count of conspiracy to violate federal racketeering laws as part of a loose organization prosecutors have dubbed the “Miske Enterprise.” She also agreed to “fully cooperate” by testifying truthfully in any proceedings involving her co-defendants or others charged later in the investigation.

In exchange, prosecutors agreed to drop a charge of bank fraud, which had carried a potential sentence of up to 30 years in prison and a fine of up to $1 million. Prosecutors also agreed to seek a two-level reduction from federal sentencing guidelines for her “acceptance of responsibility.” Fabro-Miske still could be sentenced to up to 20 years in prison and fined up to $250,000.

Prosecutors acknowledged she has “provided substantial assistance to authorities in the investigation or prosecution of another person who has committed an offense.” That person is not identified in the plea agreement.

Fabro-Miske’s last-minute guilty plea forced a short delay in the fifth day of jury selection in the case, a process that is expected to continue through at least the beginning of next week. The trial is being held at Honolulu’s U.S. District Court.

Fabro-Miske is the 11th of Miske’s 12 co-defendants to cut deals and plead guilty in the case. Most have agreed to cooperate with prosecutors and testify against their former associates.

Her change of plea leaves only Miske and his half-brother, John Stancil, to continue to trial. Both face charges including murder-for-hire conspiracy, assault and attempted murder in aid of racketeering and use of a chemical used in termite treatment as a weapon.

Miske also faces several charges stemming from his alleged role in directing a conspiracy leading to the kidnapping and death of Johnathan Fraser. The charges could result in life in prison for both men.

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This latest plea follows another just two weeks ago by Jason Yokoyama, Miske’s former business partner, who had posed as the majority owner of M Nightclub to conceal Miske’s control of the business.

Yokoyama and Fabro-Miske were not named in the original 22-count indictment made public in July 2020, but were added to the case a year later.

Fabro-Miske was married to Miske’s son and only child, Caleb Miske, who died in March 2016 of complications from critical injuries received in a high-speed crash several months earlier.

Fraser, considered Caleb’s best friend, was also critically injured in the crash. The indictment alleges Mike Miske mistakenly believed Fraser had been driving at the time of the accident, blamed him for Caleb’s death and set a murder-for-hire scheme in motion as revenge. 

Fraser disappeared on July 30, 2016, and is presumed dead. His body has not been found.

Bank Fraud

In her written plea agreement, Fabro-Miske acknowledged she had been a member or associate of the “Miske Enterprise” beginning at least by 2016 until sometime around June 2020, and during that time had agreed to engage in activities involving bank fraud, obstruction of justice and wire fraud.

Fabro-Miske said that between April and July 2017, she worked with Miske to prepare and submit fraudulent loan applications to the Bank of Hawaii to buy two Toyota Tacomas. The loan applications included falsified documents that identified an individual, referred to in the plea agreement only by the initials “M.K.M.”, as a managing member of Oahu Termite and Pest Management, a company registered with the state for the first time in January 2017. This was done to allow M.K.M. to be accepted as guarantor of the loan.

“In reality, Fabro-Miske and Miske knew that M.K.M was Miske’s personal assistant and was not a manager at Oahu Termite,” according to the plea agreement. 

The documents included forms reporting M.K.M.’s supposed ownership that were filed with the DCCA.

Miske is also charged with being part of the same fraudulent transaction that has now been admitted by Fabro-Miske and by Miske’s longtime accountant, Trisha Castro, who pleaded guilty earlier and is scheduled to be a witness in the upcoming trial.

Obstruction Of Justice

According to Fabro-Miske’s plea agreement, she and Miske were aware by sometime in 2019 that the Environmental Protection Agency was investigating Kamaaina Termite and Pest Control Inc. for possible violations of federal laws governing application of restricted-use pesticides such as those used in termite treatment.

For example, a certified and licensed applicator is required to be on site when the chemical Vikane is used during termite treatment. Federal regulators work directly with the Hawaii Department of Agriculture to enforce environmental requirements.

“On March 4, 2020, Fabro-Miske, at Miske’s direction, sent via email a log to the HDA wherein she listed herself as the certified applicator for over 300 jobs in 2019,” according to the plea agreement.

However, Fabro-Miske now admits the claim was false and that most of the 300 jobs “were completed by unlicensed applicators.”

“Fabro-Miske sent the falsified log to the HDA with the intent to influence, obstruct, or impede the EPA and the HDA’s investigation,” the plea deal said.

Wire Fraud

Fabro-Miske also admitted for the first time that she and Miske devised a scheme to defraud the government by failing to report significant amounts of income in order for her to continue to receive full Social Security Administration survivor benefits following Caleb Miske’s death. These benefits are reduced if the recipient’s income exceeds a threshold amount.

In order to stay within the lower income threshold, she and Mike Miske directed the company’s accountant to “lower her hourly rate to $10 an hour, which made her one of the lowest hourly wage earners” at Kamaaina Termite, the plea agreement states. 

However, both understood Miske would transfer other money to her to make up for the apparent reduction in her salary while maintaining full federal benefits.

“For example, in 2017, a $17,000 check from the sale of a used vehicle owned by Hawaii Partners, a corporate entity controlled by MISKE, was deposited into FABRO-MISKE’s personal account,” although she had no financial interest in the vehicle, according to the plea agreement.

The $17,000 payment was not reported to Social Security or to the IRS, according to Fabro-Miske’s admission in the plea agreement. Her survivor benefits would have been reduced if it had been reported. 

And because her benefits were delivered electronically by direct deposit into her bank account in an interstate wire communication, it entailed federal wire fraud.

Potentially Damaging Testimony

Like Jason Yokoyama, Miske’s former business  partner in the M Nightclub, Delia Fabro-Miske is in a position to provide damaging testimony about Miske’s business and criminal activities.

Although Fabro-Miske was just 21 when Caleb Miske died, she was quickly thrust into a key position within Mike Miske’s business network.

For example, although Kamaaina Termite was actually owned by Miske, reports filed with the state’s business registration division in January 2017 reported Fabro-Miske, then just 22, had become the company’s sole officer and director.

This was just one of several Miske-owned companies that filed forms with DCCA in which Fabro-Miske was reported to have replaced Mike Miske as sole officer and director. These changes were reported during the six months after Fraser’s disappearance, as an ongoing multi-agency federal investigation into Miske’s involvement in gambling, drug trafficking and extortion was picking up steam amid a new focus on Fraser’s apparent murder.

Prosecutors have alleged the name changes were done to conceal Miske’s continued ownership of these business in the face of an intensifying investigation.

Other companies that listed Fabro-Miske as sole officer included Kamaaina Energy, and Oahu Termite and Pest Control Inc., as well as Kamaaina Holdings, which held title to the fishing vessel Rachel. Another was Hawaii Partners, which was licensed as a used car dealer and owned Miske’s 37-foot Boston Whaler, Painkiller, that investigators believe was purchased for use in Fraser’s murder.

Close Friends

Fabro-Miske and Caleb Miske shared a Waipahu apartment with Johnny Fraser and his girlfriend in 2014, before they were evicted for failing to keep current in their rent. The friends remained close, even sending out a Christmas card featuring a photo of the foursome.

Later, in the weeks before Fraser’s disappearance, he and his girlfriend had moved into the Hawaii Kai apartment where Fabro-Miske was living with her daughter. The apartment was allegedly being paid for by Mike Miske, which prosecutors alleged was a means to keep track of Fraser’s movements and create a setting where he could be kidnapped.

On the day of Fraser’s disappearance, Fabro-Miske took Fraser’s girlfriend for an all-day spa experience at the Aulani Resort, leaving Fraser in the apartment alone.