Hawaii Man Indicted for Alleged Scheme to Defraud Federal Government

HONOLULU – On January 22,2026,Nehemiah Kealoha,40,of Waianae,Oahu,was indicted by a federal grand jury on charges of wire fraud,aggravated identity theft,and false statements,announced United states Attorney Ken Sorenson. The indictment alleges Kealoha engaged in a scheme to fraudulently obtain federal funds intended for COVID-19 relief programs.

Details of the Alleged Fraud

According to the indictment, Kealoha submitted multiple fraudulent applications for Economic Injury Disaster Loans (EIDL) through the Small Business Administration (SBA). These applications reportedly contained false facts regarding business revenue,number of employees,and other eligibility criteria. He allegedly used stolen identities to create shell companies and further conceal his fraudulent activity.

The SBA approved several of these fraudulent applications, resulting in the disbursement of over $250,000 in federal funds to Kealoha. These funds were then allegedly used for personal expenses, including luxury goods and travel.

Charges and Potential Penalties

kealoha faces the following charges:

• Wire Fraud: Carries a maximum sentence of 20 years in prison and a $250,000 fine.
• Aggravated Identity theft: Carries a mandatory consecutive sentence of two years in prison and a $250,000 fine.
• False Statements: Carries a maximum sentence of five years in prison and a $250,000 fine.

The case is being investigated by the Federal Bureau of Investigation (FBI) and the Small Business Administration – Office of Inspector General (SBA-OIG).Assistant U.S. Attorney Michael Song is prosecuting the case.

Protecting Yourself from Identity Theft and Fraud

the Department of Justice urges anyone who suspects thay have been a victim of identity theft or fraud to report it instantly to the Federal Trade Commission (FTC) at IdentityTheft.gov and to their local law enforcement agency.

Key Takeaways

• Nehemiah Kealoha was indicted on charges related to fraudulently obtaining COVID-19 relief funds.
• The alleged scheme involved submitting false applications to the Small Business Administration (SBA).
• Kealoha faces important prison time and fines if convicted.
• Individuals should be vigilant about protecting their personal information and report any suspected fraud.

FAQ

Q: What is an Economic Injury Disaster Loan (EIDL)?

A: EIDLs are loans offered by the small Business Administration (SBA) to help businesses and individuals recover from economic losses due to declared disasters, including the COVID-19 pandemic.

Q: What is aggravated identity theft?

A: Aggravated identity theft occurs when someone knowingly uses another person’s identifying information in connection with certain federal crimes, such as fraud.

Q: Where can I report identity theft?

A: You can report identity theft to the Federal Trade Commission (FTC) at IdentityTheft.gov and to your local law enforcement agency.