On December 12, 2024, Kaiaulani C. Kaiawe, also known as Coty K. Duhaylongsod, a 46-year-old resident of Kapaa, Hawaii, was indicted by a federal grand jury on charges of wire fraud, aggravated identity theft, and money laundering in connection with fraudulent claims made under the Kauai Coronavirus Rental and Utility Assistance (CRUA) program.
The CRUA program was part of the Emergency Rental Assistance initiative authorized by Congress in 2021 to help households impacted by the COVID-19 pandemic. In Hawaii, the County of Kauai administered the program using funds from the U.S. Department of the Treasury, providing assistance for rent, utilities, and other housing-related expenses.
According to the indictment, Kaiawe submitted a false claim to the CRUA program on her own behalf, using her former name, Coty Duhaylongsod, as the claimant, and listing her current name, Kaiawe, as the landlord to receive payments improperly. Additionally, Kaiawe allegedly submitted multiple other false claims using the personal information of others, without their knowledge or consent, and falsely listed herself as their landlord or property manager to obtain additional payments.
The indictment further alleges that Kaiawe submitted false claims using the identities of acquaintances as landlords or property managers. These claims were submitted with residential addresses near Kaiawe’s home, which allowed her to intercept rental assistance checks when they were delivered.
Kaiawe is accused of seeking a total of nearly $250,000 in CRUA benefits, of which she fraudulently obtained approximately $126,026.
Kaiawe faces four counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering. The charges carry significant penalties, including up to 30 years in prison for each wire fraud count, two years for each aggravated identity theft count, and up to 10 years for the money laundering charge. The money laundering charge also carries a fine of up to $250,000 or up to twice the amount of criminally-derived property involved.
The case is part of an ongoing effort by the Department of Justice to investigate and prevent pandemic-related fraud. The FBI and Kauai Police Department are investigating the case, which is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
This indictment follows the creation of the COVID-19 Fraud Enforcement Task Force in May 2021, aimed at investigating and prosecuting fraud related to COVID-19 relief programs.
Anyone with information about COVID-19-related fraud can report it by calling the Department of Justice’s National Center for Disaster Fraud at 866-720-5721 or visiting www.justice.gov/DisasterComplaintForm.
