Kauai woman sentenced for abusing COVID relief program

HONOLULU (HawaiiNewsNow) – A Kauai woman has been sentenced in federal court for abusing a COVID-19 relief program.

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A Kapa‘a woman will serve 40 months in prison for defrauding the Kaua‘i Coronavirus Rental and Utility Assistance (CRUA) program, a federally funded pandemic relief program intended to help residents impacted by COVID-19.

On Monday, United States District Judge Jill A. Otake sentenced Kaiaulani C. Kaiawe, 47, to three years of supervised release and ordered her to pay $126,026.10 in restitution to the State of Hawaii.

Kaiawe previously pleaded guilty on October 9, 2025, to two counts of wire fraud and two counts of aggravated identity theft.

According to court documents, in 2021, Congress authorized Emergency Rental Assistance programs through the U.S. Department of the Treasury to help households affected by the COVID-19 pandemic. In the State of Hawaii, the County of Kauai used these federal funds to establish the CRUA program and contracted with a local credit union to administer the program.

Eligible applicants were required to submit claims through the CRUA website and provide personal identifying information, landlord or property manager contact information, and certification that the information submitted was true and accurate.

Approved rental payments were issued directly to landlords or property managers, and utility payments were sent directly to utility companies.

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As part of her guilty plea, Kaiawe admitted that she submitted a false CRUA claim on her own behalf using her former name, Coty Duhaylongsod, as the claimant, while listing herself under her current name as the landlord to receive benefit payments improperly.

Kaiawe also admitted to submitting multiple additional false claims using others’ personal information without their knowledge or consent, falsely identifying herself or others as landlords or property managers to obtain funds. Kaiawe further acknowledged providing false and altered documentation to support each application.

In total, Kaiawe fraudulently obtained $126,026.10 in CRUA benefit payments.

“The CRUA program was created to provide urgent relief to families facing housing instability during an unprecedented crisis,” said Housing Agency Director Adam Roversi.

United States Attorney Ken Sorenson stated that the defendant’s actions diverted critical resources intended to serve unemployed and struggling residents during the pandemic and emphasized the Department of Justice’s continued commitment to investigating and prosecuting fraud involving public funds.

The Federal Bureau of Investigation and the Kauai Police Department investigated the case. Assistant U.S. Attorney Gregg Paris Yates prosecuted the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division, which focuses on investigating and prosecuting individuals who steal or misuse taxpayer dollars through fraud and related offenses.

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