University of Hawaii Agrees to Resolve Allegations of Insufficient Oversight of AmeriCorps Grants

News Release from U.S. Attorney's Office, District of Columbia, Tuesday, September 15, 2026

WASHINGTON – The United States Attorney’s Office for the District of Columbia announced yesterday that it reached a civil settlement agreement with the Hawaii Commission for National and Community Service (“HCNCS”) and the University of Hawaii (the “University”) whereby the University will pay $499,950 to resolve allegations that HCNCS and the University violated the False Claims Act by making false certifications to AmeriCorps that the agency’s grant and sub-grant funds were used for authorized purposes and in compliance with grant and sub-grant terms.  

“AmeriCorps grant funds are designated to help enrich and strengthen people’s lives, but instead were misappropriated under the University of Hawaii’s watch,” said U.S. Attorney Pirro. “By requiring the University to pay half a million dollars, this settlement underscores a clear message: institutions that receive federal grant money have a responsibility to ensure proper oversight and to report the use of those funds honestly and accurately.” 

The Office’s investigation of HCNCS and University oversight of AmeriCorps grant and sub-grant funds arose from previous criminal prosecutions by this Office. In October 2021, a former Executive Director of HCNCS, Stacy Higa, pleaded guilty to embezzlement of AmeriCorps grant funds, which he used in part on personal expenses. In addition, Hanalei Aipoalani, Program Director for Olelo Community Media, an AmeriCorps subgrantee, pleaded guilty in March 2021 to embezzling AmeriCorps program funds.  In April 2021, Aipoalani’s wife, Angelita Aipoalani, pleaded guilty to conspiracy to embezzle. AmeriCorps Office of Inspector General also found evidence of the improper use of AmeriCorps funds by another HCNCS subgrantee.   

(CLUE:  Higa is a former Hawaii County Councilman and Na Leo exec.  Aipoalani is a former CNHA Board Chair and Ewa Dream House board member.)

During the period in which AmeriCorps grant and sub-grant funds were being misappropriated, the University submitted semi-annual Federal Financial Reports to AmeriCorps certifying the grant and sub-grant funds were used for authorized purposes and in compliance with grant and sub-grant terms. The United States contends that those certifications were knowingly false as a consequence of the HCNCS and the University conducting inadequate oversight and supervision. 

AmeriCorps is a federally funded network of national service programs that address critical community needs, such as increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more.  

“The egregious crimes committed by Aipoalanis and Higa could have been mitigated by the University with proper oversight of AmeriCorps programs and HCNCS staff,” said Michael Pritchard, Official Performing the Duties of the Inspector General. “This settlement demonstrates that when an organization accepts AmeriCorps grant funding, it has the responsibility to have the people, policies, and procedures in place to ensure that funding is spent appropriately. We appreciate the USAO-DC's partnership in protecting the integrity of national service.” 

The settlement built on the previous work of the AmeriCorps Office of Inspector General, the FBI Honolulu Field Office, and criminal prosecutors of the U.S. Attorney’s Office for the District of Columbia.  The resolution of this Office’s False Claims Act investigation resulted from the work of Assistant United States Attorney Sean M. Tepe and Auditor Timothy J. Hurley. 

The claims resolved by the civil settlement are allegations only, and there has been no determination of liability. 

PDF: uh_and_hcncs_settlement_agreement_-_fully_executed_9-11-26.pdf

BACKGROUND:

2020: Na Leo Raids in Hilo, Honolulu  (see para 12 of Statement of Offense)

2021: COVID Money: Stacy Higa Pleads Guilty to Bribery and Embezzlement

2021: FORMER CNHA BOARD CHAIRMAN PLEADS GUILTY TO EMBEZZLEMENT - WILL GO TO PRISON

2021: Guilty of Bribery, Embezzlement: Caldwell Admin CARES Act Administrator Hanalei Aipoalani (CNHA and Ewa Dream House Board)

2021: Text messages allegedly show Higa teaching Aipoalani how to “launder money” and “funnel cash”

2022: COVID Fraud: Stacy Higa Sentenced to 46 Months in Federal Prison