In a recent federal indictment, a Kapaa woman faces charges for allegedly defrauding a pandemic assistance program designed to aid those struggling to pay rent and utilities due to the far-reaching impacts of COVID-19; Kaiaulani C. Kaiawe, 46, alias Coty K. Duhaylongsod, has been charged with a criminal scheme to obtain funds from the Kauai Coronavirus Rental and Utility Assistance program, which utilized funds authorized by Congress under the Department of Treasury for Emergency Rental Assistance programs, according to the the U.S. Attorney’s Office.
Details from the U.S. Attorney’s Office state that the indictment includes eight counts with charges of wire fraud, aggravated identity theft, and money laundering, where Kaiawe is accused of applying for the CRUA program under her former name and then under her current name, posing as the landlord to illicitly claim payments she wasn't entitled to, while also using the personal information of others without their knowledge to commit fraud.
"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 in a statement, noting the imperative need to hold those accountable who took advantage of these funds meant for the vulnerable; Kaiawe's actions ostensibly defrauded the program of nearly $250,000, with approximately $126,026 confirmed to have been wrongfully claimed, as reported by the the U.S. Attorney’s Office.
The multiple counts against Kaiawe carry substantial penalties, with wire fraud counts holding the threat of up to 30 years in prison and $1,000,000 fines and the money laundering count up to ten years and fines of up to $250,000 or twice the amount of the illicit transaction, not to mention the aggravated identity theft charges that add a mandatory two-year sentence for each count if convicted, as detailed by the the U.S. Attorney’s Office.
Evidence gathered by the Federal Bureau of Investigation and the Kauai Police Department culminated in this case, which is now spearheaded by Assistant U.S. Attorney Gregg Paris Yates; meanwhile, the public remains vigilant, with the the U.S. Attorney’s Office encouraging anyone with further knowledge of such frauds to come forward to the National Center for Disaster Fraud to report these malign activities aimed at programs meant for community assistance during an unprecedented global health crisis.
