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A 32-year-old Honolulu man accused of embezzling almost $360,000 from Kamehameha Schools 91直播 when he was employed there has repaid $69,500 to the educational trust and has been making monthly $3,500 restitution payments.

Zachary Heltz pleaded not guilty Thursday to charges of first-degree theft and first-degree computer fraud for the alleged thefts which, according to the indictment, occurred between Dec. 8, 2020, and June 2, 2023.

Hilo Circuit Judge Henry Nakamoto ordered Heltz to return to court at 9 a.m. on July 30. Nakamoto also reduced Heltz’s bail from $500,000 to $50,000 and suggested Heltz apply for services from the public defender.

Michael Green, Heltz’s Honolulu-based private attorney, called the payments by Heltz — a 2011 graduate of KS 91直播 — “almost a tacit admission of the crime he’s been charged with.”

“There may be some defenses to certain things, but this is not going to trial,” Green told the judge. “… Here’s a defendant that has absolutely no criminal record, whatsoever. He started paying off his debt to Kamehameha Schools over a year ago. He’s paid almost $70,000 to date, without being compelled to do anything. I mean, he (hadn’t) been arrested; he (hadn’t) been charged. He lives on $500 a month. He makes $4,000 a month where he works, and $3,500 of that goes for the debt service at the Kamehameha Schools.

“… Obviously, if he’s been making payments, this case is going to wind up in a change of plea.”

Green filed a written motion on Wednesday requesting that Heltz be freed on supervised release — a form of cashless bail — or that his bail be reduced from $500,000 “to an amount deemed reasonable by this court.”

Green’s motion said that Heltz “has no prior criminal history and is not a danger to the community.” The motion also said Heltz “is not a flight risk” and bought his own one-way ticket to fly back to Hilo and turn himself in to Big Island police.

According to the document, Heltz lives and works as an on-site maintenance attendant at Kokua Hale in downtown Honolulu, which Green described as “an affordable, independent, senior community.”

Green noted in court that a bail study — which is not a public document — recommended Heltz be freed on supervised release.

Deputy Attorney General Thomas Michener asked Nakamoto to maintain Heltz’s bail at $500,000.

“The state understands the information that Mr. Green has provided. Repayments have been occurring at $3,500 a month,” Michener said. “The things for the court to consider are the offense and the possible punishment. The offense, that was over $356,000.”

Michener said Heltz made more than 560 unauthorized transactions at Kamehameha Schools’ expense in the 30-month period covered by the indictment.

Heltz, who gave Big Island police a home address of Volcano despite living in Honolulu, allegedly used a computer to make payments “using Kamehameha Schools 91直播 purchasing cards to entities under his control via online payment system PayPal,” according to the indictment returned last week by a grand jury.

Green suggested in court that Heltz apply for public defender services so he can continue both working and repaying Kamehameha Schools. He said people released from jail usually are jobless and “wind up paying $30 a month towards the indebtedness.”

“And the victim usually never gets paid back unless the guy lives to be 130,” Green said. “I want Kamehameha Schools to be paid. My client wants them repaid — and he’s making great efforts to do that. … And he’ll live on $500 a month if he has to. He’s been doing it so far.

“It seems that we should be pretty well satisfied that he surrendered to the police and flew over here. And he certainly intends to appear, and he certainly intends to abide by what he’s been paying so far. I would just think that in this kind of case, any money he gives to a bondsman is better off going to Kamehameha Schools and for the children.”

While Heltz has no prior criminal record, there have been six civil court actions filed since 2019 seeking payment of alleged debts.

At least three have been dismissed due to nonservice of the complaint. One plaintiff received a judgment that Heltz owed him $1,616.16, but it’s not clear whether Heltz paid that judgment.

Heltz sought a temporary restraining order for harassment against another individual who received a favorable financial ruling against him, but Hilo District Judge Kanani Laubach denied the TRO request.

Kamehameha’s private educational trust, established in 1887 by the will of Princess Bernice Pauahi Bishop to educate 91直播an children, is worth an estimated $15 billion.

Email John Burnett at john.burnett@hawaiitribune-herald.com.