In a recent case of public corruption, Stacy Higa, the former Executive Director of the Hawaii Commission for National and Community Service, has been sentenced to 46 months in prison for embezzling funds from AmeriCorps and attempting to bribe his way into receiving grants under the CARES Act. Higa, a former Hawaii County councilman and mayoral candidate, used his position to sign and authorize contracts and purchase orders between the Hawaii Commission and companies he owned without disclosing his control. He embezzled over $38,000 in AmeriCorps funds, which he used for personal expenses, including elective aesthetic dental care. This sentence serves as a reminder that individuals who abuse their positions of power for personal gain will be held accountable by the Department of Justice.
Former Executive Director of the Hawaii Commission Sentenced To 46 Months in Prison for Embezzling from AmeriCorps And Offering a Bribe in Return for CARES Act Grants
Summary
Stacy Higa, the former Executive Director of the Hawaii Commission for National and Community Service, has been sentenced to 46 months in prison for embezzling funds from AmeriCorps and offering a bribe in exchange for grants under the CARES Act. Higa pleaded guilty in October 2021 to embezzlement and bribery charges. The sentencing reflects the seriousness of his offenses and serves as a warning that those who abuse their positions of power for personal gain will be held accountable.
Background Information
AmeriCorps is a federally funded network of national service programs that address critical community needs. Its programs aim to increase academic achievement, mentor youth, fight poverty, sustain national parks, prepare for disasters, and more. AmeriCorps members commit to service for a set period of time, in exchange for a living allowance, funding for college tuition, and other benefits.
Stacy Higa, a former Hawaii County councilman and mayoral candidate, served as the Executive Director of the Hawaii Commission for National and Community Service from June 2011 to May 2020. In this role, Higa was responsible for administering AmeriCorps programs in Hawaii.
Criminal Charges and Guilty Plea
Stacy Higa pleaded guilty in October 2021 to embezzlement and offering a bribe. He was charged in the U.S. District Court for the District of Columbia. His guilty plea acknowledged his involvement in two separate schemes: embezzling funds from AmeriCorps and offering a bribe for grants under the CARES Act.
Sentence and Fines
Stacy Higa has been sentenced to 46 months in prison for his crimes. After serving his prison term, he will be placed on three years of supervised release. In addition to the prison sentence, Higa is required to pay $38,642 in restitution and an equal amount in a forfeiture money judgment. He is also obligated to complete 200 hours of community service.
Embezzlement from AmeriCorps
Between February 2018 and his resignation from the Hawaii Commission in May 2020, Higa embezzled over $38,000 in funds from AmeriCorps. He achieved this by signing and authorizing contracts and purchase orders between the Hawaii Commission and two companies under his control. Higa concealed his control of these companies, using the embezzled funds for personal expenses, including elective aesthetic dental care.
Bribery in Return for CARES Act Grants
The CARES Act, passed in March 2020, aimed to provide financial relief to individuals, businesses, states, and localities impacted by the COVID-19 pandemic. One of its provisions was the creation of a $150 billion Coronavirus Relief Fund (CRF) to be distributed to support expenditures incurred due to COVID-19.
In August 2020, Higa offered financial benefits to Hanalei Aipoalani, the CARES Program Administrator for Honolulu City and County’s Department of Community Service. This was in an attempt to influence the approval of his applications for two grants totaling $845,000 under the CARES Act. Higa directed an employee to submit false and backdated invoices under the grants and discussed using LLCs and their wives as principals to launder the money. Higa expected to profit at least $250,000 from the CARES Act funds.
AmeriCorps and its Programs
AmeriCorps plays a vital role in addressing critical community needs across the United States. Its programs focus on areas such as education, poverty alleviation, environmental sustainability, disaster preparedness, and more. AmeriCorps members dedicate their time and skills to serving communities in exchange for various benefits.
Higa’s Position as Executive Director
As the Executive Director of the Hawaii Commission for National and Community Service, Stacy Higa held a position of trust and responsibility. His role involved overseeing the administration of AmeriCorps programs in Hawaii and ensuring the effective use of federal funds.
Higa’s Embezzlement Scheme
During his tenure as Executive Director, Higa abused his position of trust by embezzling funds from AmeriCorps. He authorized contracts and purchase orders between the Hawaii Commission and his own companies without disclosing his control of those companies. Higa used the embezzled funds for personal expenses, including elective aesthetic dental care.
The CARES Act and Its Relief Programs
The CARES Act was enacted in response to the economic impact of the COVID-19 pandemic. It provided financial relief to individuals, businesses, states, and localities. The Act created the Coronavirus Relief Fund (CRF), among other programs, to support expenditures related to the pandemic. The CRF distributed funds to government entities to provide economic relief to businesses and individuals affected by the pandemic.
Higa’s Bribery Scheme
Stacy Higa attempted to secure grants under the CARES Act by offering financial benefits to Hanalei Aipoalani, the CARES Program Administrator for Honolulu City and County’s Department of Community Service. Higa intended to influence the approval of his grant applications through bribes. He directed an employee to submit false and backdated invoices, and discussed laundering the money through LLCs and their wives’ involvement. His expectation was to profit at least $250,000 from the CARES Act funds.
Co-Defendant Aipoalani’s Involvement
Hanalei Aipoalani, the CARES Program Administrator, was implicated in the schemes alongside Stacy Higa. Aipoalani separately pleaded guilty to embezzlement from AmeriCorps and agreeing to accept a bribe under the CARES Act. He was sentenced to 46 months’ imprisonment and ordered to pay full restitution.
Investigation and Prosecution
The Inspector General for AmeriCorps and the FBI’s Honolulu Field Office conducted an investigation into the embezzlement and bribery schemes involving Higa and Aipoalani. Assistant U.S. Attorney Leslie A. Goemaat of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia prosecuted the case.
Response and Commitment to Combat Fraud
The sentencing of Stacy Higa and Hanalei Aipoalani highlights the commitment of the AmeriCorps Office of Inspector General, the FBI, and the U.S. Attorney’s Office to investigate and prosecute individuals involved in fraud schemes. The Department of Justice is dedicated to holding accountable those who abuse their positions of power and take advantage of programs designed to help vulnerable Americans.
Reporting Fraud or Abuse
To report fraud, waste, or abuse affecting AmeriCorps or any of its programs, individuals are encouraged to contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or hotline@AmeriCorpsOIG.gov. The U.S. Attorney’s Office and law enforcement agencies are committed to taking action against those who defraud AmeriCorps and exploit relief programs like the CARES Act.
In conclusion, the sentencing of Stacy Higa serves as a reminder that those who engage in corruption and fraud at the expense of federal programs and vulnerable Americans will face severe consequences. The justice system and law enforcement agencies remain dedicated to investigating and prosecuting such crimes. The public is encouraged to report any instances of fraud or abuse to ensure the integrity of programs like AmeriCorps.