Former Real Estate Commission vice chairman sentenced to jail, court supervision for theft

  • HOLLYN JOHNSON/Tribune-Herald file Kawili Regency condominiums in Hilo

The former vice chairman of the state Real Estate Commission was sentenced Friday to 10 years of court supervision, including six months in jail, for embezzling more than $200,000 from Hilo clients.

Scott Alan Sherley, 54, pleaded no contest Dec. 11 to first-degree theft. As part of a plea agreement, a similar charge will be dropped against Sherley’s 53-year-old wife, Penny Sherley, aka Penny Honda.


Shirley will be allowed a two-year period before reporting to serve his jail sentence, because Penny Sherley is seriously ill, according to Deputy Prosecutor Rick Damerville.

“We can move it up if the situation changes with to respect to his wife,” Damerville said.

Hilo Circuit Judge Greg Nakamura is also ordering Sherley to pay restitution to the victims, the revocable living trust of Edward Pereira and Frances Pereira, owner of Lehua Apartments, and the Kawili Regency condominium owners’ association, both Hilo entities.

Police said Sherley misappropriated $135,633 from the Pereira trust between Oct. 19, 2011 and Nov. 2, 2015, and drained about $80,000 in funds from the condo association when he was the property’s manager.

“He’s contesting the exact amount of … restitution, so we’ve got a hearing,” Damerville said. “A lot of the victims are … senior citizens and they want their money back.”

That includes Frances Pereira, who’s 93 and addressed the court during the sentencing hearing.

The restitution hearing is scheduled for 8 a.m. on May 31.

Sherley was also granted a deferred acceptance of his no contest plea, which means if he abides by terms and conditions of court supervision, including restitution and not committing any more crimes in the next 10 years, his Class B felony conviction will be expunged from the record.

“There’s an anomaly in the law,” Damerville said. “The maximum probation period for Class B felony theft is four years. (Sherley) wants a deferral and I want more supervision. … The court can, and in this case did grant a 10-year period of supervision for the theft. There’s a lot of restitution to be made and I want him under supervision for 10 years.”

“If he makes restitution and does everything he’s supposed to do for 10 years, he won’t have a permanent criminal record,” Damerville added. “If he screws up, we can ask for prison.”


Sherley was formerly the Hawaii Island representative of the Real Estate Commission between 2010 and 2016.

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