Kirk Caldwell said he believes his former political appointees are innocent, but the former mayor continued not to respond to questions about what he knew about the transaction.
The indictment alleges that the conspirators attempted to omit and conceal, and cause others to omit and conceal details of the Kealoha payout from the City Council and the public.
Three former Honolulu officials have been arrested for allegedly conspiring to hide the source of public funds used to get a police chief to retire amid a corruption investigation. Their attorneys entered not guilty pleas for them in court on Wednesday.