Kapaa Woman Sentenced to 40 Months in Prison and Ordered to Pay Over 126 Thousand Dollars for Scheme to Defraud COVID-19 Pandemic Rental and Utility Assistance Program

HONOLULU - United States Attorney Ken Sorenson announced that on May 11, 2026, United States District Judge Jill A. Otake sentenced Kaiaulani C. Kaiawe, 47, of Kapaa, Hawaii to 40 months in prison for defrauding the Kauai Coronavirus Rental and Utility Assistance (CRUA) program. Judge Otake also sentenced Kaiawe to a term of supervised release of three years following her imprisonment, along with $126,026.10 in restitution to the State of Hawaii. In connection with the fraud scheme, Kaiawe had pled guilty to two counts each of wire fraud and aggravated identity theft on October 9, 2025.

According to court documents, in 2021, Congress authorized the creation of Emergency Rental Assistance (ERA) programs within the Department of the Treasury to fund rent, utility, and other housing-related expense assistance to households that were impacted by the COVID-19 pandemic. In the State of Hawaii, the County of Kauai used ERA funds to establish the CRUA program. The County of Kauai contracted with a local credit union to administer the CRUA program.

As part of her guilty plea, Kaiawe admitted to committing wire fraud in connection with a scheme to defraud the CRUA program to obtain benefit payments that she was not eligible to receive. The CRUA program required eligible claimants to submit an application electronically, using its website, and to provide certain personal information of the claimant, including his or her name and date of birth, as well as a landlord or property manager contact, before certifying that the representations made in the claim were true and accurate. If the credit union approved the claim, rental payments for the claimant were sent directly to the claimant's landlord or property manager, and utility payments were sent directly to his or her utility company.

Kaiawe admitted to submitting a false CRUA claim on her own behalf, using her former name, Coty Duhaylongsod, as the claimant, and entering her then-current name, Kaiawe, as her own landlord to improperly receive a CRUA benefit payment. Kaiawe then submitted multiple other false CRUA claims using the personal information of others as claimants, without their knowledge and consent, and then falsely listed herself or others as the landlord or property manager to obtain additional benefit payments that she was not entitled to receive. In addition, Kaiawe admitted that she provided false and altered documentation to support each CRUA claim that she submitted. In total, Kaiawe fraudulently obtained $126,026.10 in CRUA benefit payments.

"Motivated by greed, Kaiawe defrauded the government of more than $100,000, which were critical resources intended to provide a lifeline to unemployed workers of Hawaii during the pandemic," said U.S. Attorney Ken Sorenson. "Through the work of the National Fraud Enforcement Division, we are focused more than ever on pursuing and prosecuting those who steal from public coffers through fraud and dishonesty, and we pledge to bring to justice those who seek to pilfer the public trust for their own greed."

"These pandemic assistance programs were designed to provide a lifeline to members of our island communities in dire need," said FBI Honolulu Special Agent in Charge David Porter. "Ms. Kaiawe did more than just break the law-she diverted critical resources away from our neighbors when they needed it most. The FBI and our partners remain committed to identifying and holding accountable those who deceive and steal taxpayer dollars for their own purposes."

The FBI and Kauai Police Department investigated the case.

Assistant U.S. Attorney Gregg Paris Yates prosecuted the case.

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.