United States Attorney Clare E Connors | U.S. Department of Justice
A federal grand jury has indicted Kaiaulani C. Kaiawe, also known as Coty K. Duhaylongsod, on charges related to a scheme involving fraudulent claims for pandemic-related rental and utility assistance. The indictment includes eight counts against the 46-year-old Kapaa resident, encompassing wire fraud, aggravated identity theft, and money laundering.
The allegations focus on the Kauai Coronavirus Rental and Utility Assistance (CRUA) program. This initiative was part of the Emergency Rental Assistance programs authorized by Congress in 2021 to support households affected by the COVID-19 pandemic. In Hawaii, Kauai County used these funds to establish the CRUA program, administered through a local credit union.
According to the indictment, Kaiawe allegedly submitted false claims to defraud the CRUA program. It is claimed that she used her former name as a claimant and listed her current name as a landlord to receive payments improperly. Further allegations state that she filed multiple false claims using others' personal information without their consent, falsely listing herself as their landlord or property manager.
The indictment asserts that Kaiawe sought nearly $250,000 in CRUA benefits she was not eligible for and obtained approximately $126,026 fraudulently.
"Congress appropriated critically important funds during the COVID-19 pandemic to help people in our community who were struggling," stated United States Attorney Clare E. Connors. "We continue to investigate those who fraudulently obtained federal funds at the expense of those who needed this assistance in order to remain housed and will hold them accountable."
Kaiawe faces four counts of wire fraud with each carrying a maximum penalty of 30 years in prison and fines up to $1 million. She also faces three counts of aggravated identity theft with sentences of two years each and one count of money laundering which carries up to ten years in prison and fines up to $250,000 or twice the amount involved.
The Department of Justice's COVID-19 Fraud Enforcement Task Force is involved in investigating pandemic-related fraud cases like this one. The task force aims to enhance efforts against domestic and international criminal actors exploiting relief programs.
The Federal Bureau of Investigation along with the Kauai Police Department are leading this investigation while Assistant U.S. Attorney Gregg Paris Yates prosecutes the case.
Anyone with information about potential COVID-19 related fraud can report it through designated channels provided by the Department of Justice.
