Leihinahina Sullivan, a 51-year-old resident of Lihue, Kauai, has been sentenced to 17 years in prison and three years of supervised release for her involvement in multiple wire fraud schemes and aggravated identity theft. In a courtroom hearing before United States District Judge J. Michael Seabright, Sullivan was described as having engaged in a “staggering scope, length, and complexity” of criminal conduct. The schemes involved tax fraud, educational fraud, and unauthorized credit card use, resulting in financial losses for victims and institutions amounting to millions of dollars. Sullivan’s sentence serves as a stern reminder of the consequences that await those who perpetrate fraud and utilize stolen identities.
Summary
Leihinahina Sullivan, a resident of Lihue, Kauai, has been sentenced to 17 years in prison for wire fraud schemes and aggravated identity theft. The sentencing was carried out by United States District Judge J. Michael Seabright. Sullivan pleaded guilty to three counts of wire fraud and one count of aggravated identity theft in July 2021. She has also been ordered to pay $3,396,035.15 in restitution to various victims and entities, and forfeit $2,012,41.92 in criminal proceeds. The court described the scope, length, and complexity of Sullivan’s criminal conduct as staggering.
Background
Leihinahina Sullivan perpetrated three fraud schemes from January 2011 to July 2019. These schemes included tax fraud, educational fraud, and identity theft. In the tax fraud scheme, Sullivan filed false tax returns totaling over $2.8 million in tax loss. She also engaged in educational fraud by submitting false student loan, grant, scholarship, and financial aid applications on behalf of college-bound students. Additionally, Sullivan used personal identification information to apply for and use credit cards without authorization.
Case Details
Sentence and Supervised Release
Leihinahina Sullivan has been sentenced to 17 years in prison and three years of supervised release. This sentence is a result of her involvement in wire fraud schemes and aggravated identity theft. The court determined that this sentence was necessary to hold Sullivan accountable for her criminal actions.
Restitution and Forfeiture
Along with the prison sentence, Leihinahina Sullivan has been ordered to pay $3,396,035.15 in restitution to various victims and entities affected by her fraudulent schemes. She is also required to forfeit $2,012,41.92 in criminal proceeds. These measures are aimed at compensating the victims and recovering the ill-gotten gains from Sullivan’s criminal activities.
Judge’s Comments on Criminal Conduct
During the sentencing, Judge Seabright highlighted the staggering scope, length, and complexity of Leihinahina Sullivan’s criminal conduct. The judge emphasized that this conduct caused significant damage to individuals, public institutions, and private entities. The severity of the sentence reflects the court’s recognition of the harm caused by Sullivan’s fraudulent schemes.
Fraud Schemes
Leihinahina Sullivan was involved in three main fraud schemes: tax fraud, educational fraud, and identity theft. Each scheme had its own distinct characteristics and impacted different individuals and entities.
Tax Fraud Scheme
In the tax fraud scheme, Sullivan orchestrated fraudulent tax refund claims totaling over $2.8 million. She filed hundreds of false tax returns, both for herself and others, containing fictitious expenses and false claims for credits. Sullivan did not review these tax returns with the individuals involved and even forged their signatures on many occasions.
Educational Fraud Scheme
Leihinahina Sullivan targeted college-bound students in her educational fraud scheme, primarily located on the island of Kauai. She prepared and submitted false student loan, grant, scholarship, and financial aid applications on behalf of these students. Sullivan misappropriated funds from the students’ financial aid applications and used the money for personal expenses, such as home construction, retail purchases, and bill payments.
Identity Theft Scheme
The identity theft scheme orchestrated by Leihinahina Sullivan involved the unauthorized use of personal identification information. Sullivan obtained social security numbers, birth dates, and other pertinent details of individuals to apply for and use credit cards without their consent. She managed to acquire approximately 40 credit cards and spent over $1 million on unauthorized purchases using these cards.
Tax Fraud Scheme
Amount of Tax Loss
Leihinahina Sullivan’s tax fraud scheme resulted in a total tax loss of over $2.8 million. This loss primarily consisted of fraudulent tax refunds from the IRS and the State of Hawaii. The refunds were obtained through false tax returns filed by Sullivan and other individuals.
Filing False Tax Returns
As part of her tax fraud scheme, Sullivan filed hundreds of false federal and state tax returns. These returns included fictitious expenses, claims for credits, and other items that Sullivan knew to be false. She did not consult with the individuals whose names were used on these tax returns and even forged their signatures on many occasions.
Forgery of Signatures
Leihinahina Sullivan engaged in the forgery of signatures when filing false tax returns. She forged the signatures of the individuals whose names were used on these returns, without their knowledge or consent. This allowed Sullivan to carry out her tax fraud scheme undetected for an extended period.
Educational Fraud Scheme
Targeting College-Bound Students
Leihinahina Sullivan specifically targeted college-bound students, primarily located on the island of Kauai, in her educational fraud scheme. These students were seeking financial assistance for their education, making them vulnerable to Sullivan’s schemes.
False Applications and Documents
As part of the educational fraud scheme, Sullivan prepared and submitted false student loan, grant, scholarship, and financial aid applications on behalf of the targeted students. These applications contained fabricated information and requested funds from public and private educational financial assistance and aid providers.
Misappropriation of Funds
Leihinahina Sullivan misappropriated funds from the students’ financial aid applications for her personal gain. She transferred the money to her personal bank accounts and other accounts under her control. Sullivan then used these funds to cover personal expenses, such as home construction, retail purchases, and bill payments.
Identity Theft Scheme
Unauthorized Use of Personal Identification Information
In her identity theft scheme, Leihinahina Sullivan obtained personal identification information, such as social security numbers and birth dates, without authorization. She collected this information from various individuals to carry out her fraudulent activities.
Obtaining Credit Cards
Using the personal identification information she obtained, Sullivan applied for and acquired approximately 40 credit cards. These credit cards were issued in other people’s names and under their guaranteed lines of credit, without their knowledge or consent.
Unauthorized Spending
Leihinahina Sullivan engaged in unauthorized spending by using the credit cards she acquired through her identity theft scheme. She spent over $1 million on these cards for personal expenses, disregarding the rightful owners’ consent and financial well-being.
Impact and Consequences
Leihinahina Sullivan’s fraudulent schemes had significant consequences for the victims and the community at large. The extensive financial losses and breach of trust caused severe damage to various individuals, public institutions, and private entities.
Amount Stolen
The total amount stolen through Leihinahina Sullivan’s fraudulent schemes is estimated to be well over $3 million. This includes the tax loss from the tax fraud scheme, funds misappropriated through the educational fraud scheme, and unauthorized spending in the identity theft scheme.
Victims Affected
Numerous victims were affected by Leihinahina Sullivan’s fraudulent activities. These victims include individuals whose names were used on false tax returns, college-bound students seeking financial aid, and individuals whose personal identification information was used without consent.
Community Trust and the Rule of Law
Leihinahina Sullivan’s actions eroded community trust and undermined the rule of law. The community members affected by her schemes were unsuspecting individuals who placed their trust in her. Restoring this trust and reinforcing the importance of adherence to the law are crucial in preventing future fraudulent activities.
Law Enforcement Efforts
The investigation into Leihinahina Sullivan’s fraudulent schemes was a collaborative effort involving multiple law enforcement partners. These partners worked together to gather evidence and bring forth the necessary charges.
Investigation Partners
Law enforcement partners involved in the investigation included IRS Criminal Investigation (IRS-CI), the Department of Education’s Office of Inspector General (DOE-OIG), the Federal Bureau of Investigation (FBI), and the State of Hawaii’s Department of Taxation. Their collective efforts were instrumental in uncovering Sullivan’s fraudulent activities and building a strong case against her.
Prosecuting Attorneys
Assistant U.S. Attorneys Rebecca Perlmutter and Mohammad Khatib prosecuted Leihinahina Sullivan’s case. Their diligent work in presenting the evidence and arguing for a just outcome demonstrated their commitment to seeking justice on behalf of the victims and the community.
Conclusion
Leihinahina Sullivan’s sentencing to 17 years in prison for wire fraud schemes and aggravated identity theft serves as a significant step towards accountability and justice. Her extensive involvement in fraudulent activities, including tax fraud, educational fraud, and identity theft, has caused immense harm to individuals, public institutions, and private entities. The collaboration between law enforcement partners and the dedicated work of prosecuting attorneys has ensured that Sullivan will face the consequences of her actions. Moving forward, it is crucial to continue strengthening measures to prevent and detect fraudulent schemes, safeguarding the community’s trust and upholding the rule of law.