HONOLULU — A former administrator of federal coronavirus aid funds allocated for Honolulu was sentenced Wednesday to over three years in prison for embezzling more than $500,000 in taxpayer money.
Hanalei Aipoalani, 42, pleaded guilty to embezzling from the AmeriCorps program and agreeing to take a bribe to administer grants through the Coronavirus Aid, Relief, and Economic Security Act, known as CARES. Prosecutors said he and his wife spent the money on themselves, including $22,000 at a hotel beach club, more than $3,000 at a Hawaii water park and more than $10,000 to lease a BMW.
Sentencing was postponed for his wife Angelita Aipoalani, who pleaded guilty to conspiracy to embezzle from AmeriCorps. Prosecutors say the program brings volunteers who receive stipends to work in vulnerable and marginalized communities.
The couple flaunted their lavish lifestyle on social media, prosecutors said, including photos of a Ferrari the husband rented for his birthday, the wife sitting in first class during a flight to San Francisco and a $395 dinner at a New York City steakhouse.
Hanalei Aipoalani, appearing at his Washington, D.C., sentencing hearing by video from Hawaii, blamed his actions on being naive and immature.
He said while he takes responsibility for his crimes, he took issue with the Ferrari, noting that he didn’t rent it but posed in front of one at a car wash.