Kauai Man Sentenced to Federal Prison and Ordered to Repay $1.4 Million for Stealing from Federal COVID-19 Relief Program

News Release from U.S. Attorney's Office, District of Hawaii, Friday, April 17, 2026

HONOLULU – United States Attorney Ken Sorenson announced that Ethan Page, 52, of Kekaha, Hawaii, was sentenced on April 15, 2026, to fourteen months in prison, followed by three years of supervised release, along with $1,409,964.35 in restitution to the Small Business Administration (“SBA”), following his guilty plea for making a false statement to the SBA.

According to court records, in or around March 2021, Congress enacted the American Rescue Plan Act, which established the Restaurant Revitalization Fund (“RRF”) to provide support to eligible entities in the food service industry that suffered revenue losses related to the COVID-19 pandemic.  To obtain RRF funding, a qualifying business was required to submit an application to the SBA signed by an authorized representative of the business.  An awardee was not required to repay funds received under the RRF program unless the funds were used for an unauthorized purpose.  The program required an awardee to submit a post-award report disclosing whether and to what extent the awardee had spent RRF funds on eligible expenses.

On or about May 16, 2021, Page submitted an RRF application to the SBA in the name of his business, Hanapepe Design Studio, LLC, seeking over $1.4 million in RRF funds.  The SBA approved the application and deposited just over $1.4 million into the business’s bank account.  Page then transferred $1.3 million of RRF funds to his own personal investment account at another institution.  Page then used the remaining $100,000 on other ineligible expenses.  On or about December 22, 2021, Page signed and submitted a post-award report to the SBA, in which he falsely certified that he used the entirety of the RRF proceeds for Hanapepe Design Studio expenses that were eligible for RRF funds, such as payroll, rent/mortgage, utilities, and other business operating expenses.  Had Page accurately reported how he used the RRF funds, the SBA would have required Hanapepe Design Studio to repay the funds.

The FBI investigated the case.

Assistant U.S. Attorneys Craig S. Nolan and 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.