Kapa‘a woman indicted by federal grand jury for scheme to defraud coronavirus assistance program

A 46-year-old Kaua‘i woman has been indicted by a federal grand jury on 8 counts including wire fraud, aggravated identity theft and others in connection with an alleged scheme to defraud a Garden Isle coronavirus pandemic rental and utility assistance program.

Kaiaulani C. Kaiawe, also known as Coty K. Duhaylongsod, of Kapa‘a was indicted Thursday with:

• 4 counts of wire fraud.
• 3 counts of aggravated identity theft.
• 1 count of money laundering.

Each of the wire fraud counts carries a maximum penalty of 30 years in prison and a fine of up to $1 million. Each aggravated identity theft count carries a possible 2-year prison term, while the money laundering count is punishable by a maximum of 10 years in prison and fine of up to $250,000 or up to twice the amount of criminally-derived property involved in the transaction.

The charges pertain to the Kaua‘i Coronavirus Rental and Utility Assistance program.

Congress in 2021 authorized the creation of emergency rental assistance programs within the U.S. Department of the Treasury to fund rent, utility and other housing-related expense assistance to households impacted by the COVID-19 pandemic.

Kaua‘i County used emergency rental assistance funds to establish the Kaua‘i Coronavirus Rental and Utility Assistance program, contracting with a local credit union to administer it.

Kaiawe is charged with wire fraud in connection with a scheme to get payments from the program she was not eligible to receive.

The Kaua‘i Coronavirus Rental and Utility Assistance program required eligible claimants to submit an application electronically, using its website, and provide certain personal information, including name and date of birth as well as a landlord or property manager contact.

If the credit union approved the claim, rental payments were sent directly to the claimant’s landlord or property manager and utility payments directly to their utility company.

Kaiawe allegedly submitted a false claim using her former name, Coty Duhaylongsod, as the claimant and listed her current name, Kaiawe, as her landlord.

She then reportedly submitted multiple other false claims using the personal information of others as claimants, without their knowledge and consent, and falsely listing herself as their landlord or property manager to obtain additional benefit payments she was not entitled to receive.

Kaiawe also is said to have submitted other false claims using the identities of acquaintances as landlords or property managers, without their knowledge or consent, entering a residential address within sight of her home, allowing her to intercept payment checks when they were delivered.

Kaiawe submitted claims seeking a total of nearly $250,000 she was not eligible to receive. She is said to have fraudulently received at least about $126,026 in assistance.

“Congress appropriated critically important funds during the COVID-19 pandemic to help people in our community who were struggling,” said U.S. Attorney for the District of Hawai‘i Clare Connors. “We continue to investigate those who fraudulently obtained federal funds at the expense of those who needed this assistance in order to remain housed, and will hold them accountable.”

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the U.S. Department of Justice’s National Center for Disaster Fraud at 866-720-5721 or filing a complaint online.

This case is being investigated by the Federal Bureau of Investigation and Kaua‘i Police Department. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.