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
News Release from U.S. Attorney's Office, District of Hawaii, Tuesday, May 12, 2026
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.
HNN: Kauai woman sentenced for abusing COVID relief program | Hawaii News Now
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Kapaa Woman Indicted for Scheme to Defraud Coronavirus Rental and Utility Assistance Program
News Release from U.S. Attorney's Office, District of Hawaii, Thursday, December 12, 2024
HONOLULU – On December 12, 2024, a federal grand jury returned an eight-count indictment against Kaiaulani C. Kaiawe, also known as Coty K. Duhaylongsod, 46, of Kapaa, Hawaii, charging Kaiawe with wire fraud, aggravated identity theft, and money laundering in connection with fraudulent claims for pandemic-related rental and utility assistance.
The charges in the indictment pertain to the Kauai Coronavirus Rental and Utility Assistance (CRUA) program. In 2021, Congress authorized the creation of Emergency Rental Assistance 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.
According to the indictment, Kaiawe is charged with wire fraud in connection with a scheme to defraud the CRUA program to obtain benefit payments 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.
The indictment alleges that Kaiawe submitted a false CRUA claim on her own behalf, using her former name, Coty Duhaylongsod, as the claimant, and then listing her then-current name, Kaiawe, as her landlord to improperly receive a CRUA benefit payment. The indictment further alleges that Kaiawe then submitted multiple other false CRUA claims using the personal information of others as claimants, without their knowledge and consent, and then falsely listing herself as their landlord or property manager to obtain additional benefit payments that she was not entitled to receive. Finally, the indictment alleges that Kaiawe submitted other false claims for CRUA benefits that used the identities of acquaintances as landlords or property managers, without their knowledge or consent; for these claims Kaiawe, entered a residential address for the landlord or property manager to receive payment that was within sight of her home, which allowed Kaiawe to intercept the rental assistance program check when it was delivered.
Kaiawe submitted CRUA claims seeking a total of almost $250,000 that she was not eligible to receive. According to the indictment, Kaiawe fraudulently obtained at least approximately $126,026 in CRUA assistance benefits.
“Congress appropriated critically important funds during the COVID-19 pandemic to help people in our community who were struggling,” said 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 is charged with four counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering. Each of the wire fraud counts carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Each of the aggravated identity theft counts carries a sentence of two years in prison. The money laundering count carries a maximum penalty of ten years in prison and a fine of up to $250,000 or up to twice the amount of criminally-derived property involved in the transaction. An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
This case is being investigated by the Federal Bureau of Investigation and the Kauai Police Department. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
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Kapa'a resident convicted of defrauding COVID-19 Assistance Programs
News Release from Kauai County Housing Agency, May 13, 2026
KAPA‘A – A Kapa‘a woman has been sentenced in federal court to 40 months in prison for defrauding the Kaua‘i Coronavirus Rental and Utility Assistance (CRUA) program, a federally funded pandemic relief program intended to help residents impacted by COVID-19.
On May 11, United States District Judge Jill A. Otake sentenced Kaiaulani C. Kaiawe, 47, to 40 months of imprisonment, followed by three years of supervised release, and ordered her to pay $126,026.10 in restitution to the State of Hawai‘i. Kaiawe previously pleaded guilty on October 9, 2025, to two counts of wire fraud and two counts of aggravated identity theft.
According to court documents, in 2021 Congress authorized Emergency Rental Assistance programs through the U.S. Department of the Treasury to help households affected by the COVID-19 pandemic. In the State of Hawai‘i, the County of Kaua‘i used these federal funds to establish the CRUA program and contracted with a local credit union to administer the program.
Eligible applicants were required to submit claims electronically through the CRUA website and provide personal identifying information, landlord or property manager contact information, and certification that the information submitted was true and accurate. Approved rental payments were issued directly to landlords or property managers, and utility payments were sent directly to utility companies.
As part of her guilty plea, Kaiawe admitted that she submitted a false CRUA claim on her own behalf using her former name, Coty Duhaylongsod, as the claimant, while listing herself under her current name as the landlord to improperly receive benefit payments. She also admitted to submitting multiple additional false claims using the personal information of others without their knowledge or consent, falsely identifying herself or others as landlords or property managers to obtain funds. Kaiawe further acknowledged providing false and altered documentation to support each application.
In total, Kaiawe fraudulently obtained $126,026.10 in CRUA benefit payments.
“The CRUA program was created to provide urgent relief to families facing housing instability during an unprecedented crisis,” said Housing Agency Director Adam Roversi. “We are grateful to our staff and partners who work diligently to safeguard public funds and ensure assistance reaches those who truly need it. Protecting the integrity of these programs is essential to maintaining public trust.”
United States Attorney Ken Sorenson stated that the defendant’s actions diverted critical resources intended to serve unemployed and struggling residents during the pandemic and emphasized the Department of Justice’s continued commitment to investigating and prosecuting fraud involving public funds.
The Federal Bureau of Investigation and the Kaua‘i Police Department investigated the case. Assistant U.S. Attorney Gregg Paris Yates prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division, which focuses on investigating and prosecuting individuals who steal or misuse taxpayer dollars through fraud and related offenses.
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SA: Kapaa woman faces charges for allegedly stealing COVID rent relief | Honolulu Star-Advertiser.