Kaiaulani C. Kaiawe, a 47-year-old resident of Kapaa, Hawaii, was sentenced on May 11 to 40 months in prison for defrauding the Kauai Coronavirus Rental and Utility Assistance (CRUA) program. United States District Judge Jill A. Otake also ordered Kaiawe to serve three years of supervised release after her imprisonment and pay $126,026.10 in restitution to the State of Hawaii.
The case highlights efforts by federal authorities to address fraud involving pandemic relief programs intended for those impacted by COVID-19. The CRUA program was established using Emergency Rental Assistance funds authorized by Congress in 2021 and administered locally through a credit union contracted by the County of Kauai.
According to court documents, Kaiawe pled guilty on October 9, 2025, to two counts each of wire fraud and aggravated identity theft. She admitted submitting false claims using both her own former name and the personal information of others without their consent. In these applications, she falsely listed herself or others as landlords or property managers in order to obtain benefit payments that she was not entitled to receive. She also provided false documentation supporting each claim.
“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.”
“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.”
The U.S. Attorney for the District of Hawaii investigates federal crimes such as this case while representing the United States in civil matters; its office operates from Honolulu with a staff that includes 23 lawyers serving across all Hawaiian Islands according to its official website.
The Department of Justice announced on April 7 that it had created a National Fraud Enforcement Division with a mission focused on investigating and prosecuting misuse or theft involving taxpayer dollars.
