Kapa'a resident convicted of defrauding COVID-19 Pandemic Rental and Utility Assistance Program
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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