Home Honolulu Press Releases 2013 Alleged Welfare Cheat Arrested by Honolulu FBI

Alleged Welfare Cheat Arrested by Honolulu FBI

FBI Honolulu October 17, 2013
  • Special Agent Tom Simon (808) 566-4300

Vida G. Bottom, Special Agent in Charge of the Honolulu Office of the Federal Bureau of Investigation (FBI), announced today the arrest of Vaughn G. Sherwood, 66, for theft of government property and being a felon in possession of a firearm. Today’s arrest was the result of a joint investigation between the Honolulu FBI and the State of Hawaii Department of Human Services Investigations.

According to the criminal complaint, Sherwood allegedly defrauded multiple government programs by receiving benefits under stolen identities and his own identity while failing to disclose significant assets to the government program administrators. Government benefits that Sherwood allegedly fraudulently received included welfare cash, Section 8 housing, food stamps, and federal student tuition assistance aggregating over $200,000.

Furthermore, FBI agents executing a search warrant of his Waikiki condominium this morning allegedly recovered two rifles and four handguns that Sherwood was not permitted to possess.

The statutory maximum penalty for the government theft charge is 10 years in federal prison. The statutory maximum penalty for the firearms offense is another 10 years in federal prison. Sherwood will be detained at the Federal Detention Center awaiting a detention hearing currently scheduled for October 22, 2013.

The public is reminded that a criminal complaint is only an accusation, and the defendant is presumed innocent unless or until proven guilty in a court of law.