A Kaua‘i resident has entered a guilty plea to charges of wire fraud and identity theft, related to fraudulent attempts to claim pandemic-related rental aid, it was a brazen move that showed a troubling disregard for systems set up to help those in genuine need during unprecedented times. Kaiaulani C. Kaiawe, also going by "Coty K. Duhaylongsod," confessed to wrongdoing in the U.S. District Court for the District of Hawai‘i on October 9 as per a report released by Kaua‘i government officials.
In her scheme, Kaiawe exploited the Emergency Rental Assistance Program to unlawfully gain $126,026 by filing false claims, this included applications on behalf of others, with some being non-existent personas crafted for her fraudulent endeavor. The program, overseen by the Kaua‘i County Housing Agency alongside Kaua‘i Federal Credit Union, was compromised by these fabricated claims which utilized a mix of legitimate and counterfeit personal data.
Housing Director Adam Roversi appreciated the efforts of those who helped uncover the fraud amidst many legitimate applications saying, "The Kaua‘i County Housing Agency, which administered the Emergency Rental Assistance Program in partnership with Kaua‘i Federal Credit Union, would like to thank their staff and leadership for detecting and reporting this incident of fraud among the thousands of applications for assistance that were submitted," as mentioned on the Kauai County website. Roversi also extended gratitude towards the Kaua‘i Police Department, the FBI, and the U.S. Attorney’s Office for their role in ensuring justice.
For her crimes, Kaiawe faces significant consequences, with the possibility of 20 years imprisonment and fines up to $250,000 per wire fraud count, her punishment also includes mandatory two-year prison terms for each aggravated identity theft count, her future is now marred by the legal repercussions of her actions that egregiously abused the trust placed in social safety nets designed to support the vulnerable in the throes of crisis.
Having agreed to a plea deal, Kaiawe is slated for sentencing on February 12, 2026, and has consented to a money judgment of $126,026.
