A woman from Kapa‘a was sentenced to 40 months in prison for defrauding the Kaua‘i Coronavirus Rental and Utility Assistance program.
Kaiaulani C. Kaiawe, 47, pleaded guilty to two counts of wire fraud and aggravated identity theft on Oct. 9, 2025, after fraudulently obtaining $126,026.10 through the program in 2021. She was sentenced on May 11 in the U.S. District Court by Judge Jill A. Otake.
“Motivated by greed, Kaiawe defrauded the government of more than $100,000, which were critical resources intended to provide a lifeline to unemployed workers of Hawaii during the pandemic,” said U.S. Attorney Ken Sorenson. “Through the work of the National Fraud Enforcement Division, we are focused more than ever on pursuing and prosecuting those who steal from public coffers through fraud and dishonesty, and we pledge to bring to justice those who seek to pilfer the public trust for their own greed.”
According to court documents, in 2021, Congress authorized the creation of Emergency Rental Assistance (ERA) programs within the Department of the Treasury to fund rent, utility, and other housing-related expense assistance to households that were impacted by the COVID-19 pandemic.
The County of Kauai used those funds to establish the Coronavirus Rental and Utility Assistance program, and contracted with a local credit union to administer the program.
The program required eligible claimants to submit an application electronically, using its website, and to provide certain personal information of the claimant, including his or her name and date of birth, as well as a landlord or property manager contact, before certifying that the representations made in the claim were true and accurate.
If the credit union approved the claim, rental payments for the claimant were sent directly to the claimant’s landlord or property manager, and utility payments were sent directly to his or her utility company.
Kaiawe admitted to submitting false claims to the program on her own behalf, using her former name, Coty Duhaylongsod, as the claimant, and entering her then-current name, Kaiawe, as her own landlord to improperly receive a benefit payment through the program, according to a news release from the Department of Justice. Kaiawe then submitted multiple other false claims using the personal information of others as claimants, without their knowledge and consent, and then falsely listed herself or others as the landlord or property manager to obtain additional benefit payments that she was not entitled to receive.
“These pandemic assistance programs were designed to provide a lifeline to members of our island communities in dire need,” said FBI Honolulu Special Agent in Charge David Porter. “Ms. Kaiawe did more than just break the law — she diverted critical resources away from our neighbors when they needed it most. The FBI and our partners remain committed to identifying and holding accountable those who deceive and steal taxpayer dollars for their own purposes.”
After serving her prison term, Kaiawe will face a term of supervised release of three years and will be required to pay $126,026.10 restitution to the State of Hawai‘i.
