Business/In Brief • Oct. 19, 2013
FBI arrests man for welfare fraud
HONOLULU – Federal agents have arrested a Honolulu man on charges he defrauded the government of more than $200,000 in welfare cash payments, food stamps, housing assistance and student loans.
And affidavit filed in federal court Thursday said Vaughn Sherwood collected these benefits from 1988 through 1999 and from 2004 until now.
But it says the 66-year-old Waikiki resident inherited more than $230,000 from his father in 1998 and $130,000 from his mother in 2006. Investigators say Sherwood owns a sailboat and a Mercedes Benz S420 car.
The FBI says Sherwood received benefits under stolen identities and his own.
Sherwood’s attorney wasn’t immediately available for comment.
The maximum penalty for government theft is 10 years in prison. A detention hearing is scheduled for Tuesday.