Defendant Confesses to Perpetrating Two Conspiracies
Washington– On 14th October 2021, Stacy Higa, age 58, an ex-public official based in Ohio, Hawaii, admitted guilt to embezzling over 38,000 USD from AmeriCorps and also to paying a bribe in trade for grants under the CARES (Coronavirus Aid, Relief, and Economic Security) Act.
The announcement was conducted by Special Agent in Charge Stephen Merrill of the FBI’s Honolulu, Inspector General of AmeriCorps, Deborah Jeffreys, and Acting United States Attorney Channing D. Phillips for the District of Columbia.
Higa admitted guilt in the United States District Court for the District of Columbia to a single count of embezzlement and bribery. Both counts bear a statutory maximum of ten years in federal prison and financial fees. According to the Federal Sentencing Guideline, Higa will likely face between forty-six and fifty-seven months in federal prison and a fine of nearly 200,000 USD. The plea settlement necessitated him to remit restitution of 38,642 USD to AmeriCorps and a similar amount in forfeiture monetary judgment. The Honorable Reggie B. Walton set a conviction for 13th January 2022.
AmeriCorps is a federally financed network of national service plans that address vital community needs like mentoring youth, preparing against disasters, increasing academic achievement, sustaining national parks, fighting poverty, and other services. AmeriCorps’ national services members are dedicated to service for a given period, usually one year, in return for a living allowance, finances to be utilized in college tuition, and other benefits.
Between June 2021 and May 2020, Higa, a previous Hawaii County officer and mayoral candidate, worked as the Executive Director of Hawaii Commission for National and Community Service, the state Service Commission tasked with managing AmeriCorps plan in Hawaii. Between February 2018 and his resignation from the commission, Higa stole over 38,000 USD in AmeriCorps finances by authorizing and signing purchase orders and contracts between the Hawaii Commission and two enterprises that he controlled and owned, without divulging his affiliation with the enterprises. Higa used the stolen finances on personal expenses, such as remitting for nearly 20,000 USD of elective aesthetic dental care.
In his plea settlement, Higa also confessed to perpetrating a conspiracy related to the CARES Act, which was enacted into law in March 2020 to offer financial aid to persons, businesses, localities, and states facing the economic implications of the Coronavirus pandemic. Among other aid plans, the CARES Act also generated a 150 billion USD CRF (Coronavirus Relief Fund) to be dispensed to localities, tribal government, and localities to support expenditure resulting from Coronavirus. Government entities that obtained money from the CRF plan could spend the finances, among other things, to provide grants to small enterprises to reimburse the cost of business hindrance resulting from necessitated closures and offer economic relief for those who are facing employment interruption.
In the conspiracy, Higa confessed to providing financial aid to Hanalei Aipoalani, who was employed as Honolulu City and County’s Department of Security Service’s Cares Act Administrator in August 2020. Between August 2020 and October 2020, Higa offered to issue financial benefits to Aipoalani to sway the authorization of Higa’s requests for two grants amounting to 485,000 USD under the CARES Act. Higa then ordered a worker to draft and present backdated invoices under the grants. Higa and Aipoalani conversed about opening LLCs in Oahu and using their spouses as managers to launder money. As part of his guilt admission, Higa confessed to expecting to obtain at least 250,000 USD in gains from the CARES Act finances.
Aipoalani, age 42, from Waianae, Hawaii, separately admitted guilt in the United States District Court for the District of Columbia for stealing from AmeriCorps and agreeing to collect bribes under the CARES Act. Aipoalani was convicted on 30th June 2021 to forty-six months in federal prison and directed to remit more than 532,270 USD in remuneration to AmeriCorps.
In announcing the guilt admission, Inspector General Jeffrey, Acting United States Attorney Phillips, and Special Agent in Charge Merrill applauded the work of those who conducted the investigation from the FBI’s Honolulu Field Office and Inspector General for AmeriCorps. They also credited those involved in the investigation from the United States Attorney’s Office for the District of Columbia, comprising the United States Assistant Attorneys Amanda Vaughn and Peter Lallas and Specialist Paralegal Mariela Andrade. Finally, they expressed gratitude to the United States Assistant Attorney Leslie A. Goemaat and the United States Attorney’s Office for the District of Columbia for prosecuting the matter.
On 17th May 2021, the AG (Attorney General) formed the COVID-19 FETF (Fraud Enforcement Task Force) to gather together the resources of the Justice Department in collaboration with agencies across the U.S. government to boost efforts to fight and stop pandemic-linked fraud. The COVID-19 Fraud Enforcement Task Force bolsters efforts to inquire and litigate the most liable domestic and global criminal actors and helps agencies responsible for administering Covid-related relief programs to stop fraud by, among other methods, incorporating and augmenting in place coordination mechanisms, pinpointing out techniques and resources to expose criminal actors and their plots, and sharing and utilizing data and insights acquired from past enforcement efforts.
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