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A Palolo Valley woman charged in U.S. District Court with fraudulently obtaining food stamps has pleaded guilty in what the state calls the biggest welfare fraud case in Hawaii history. Palolo woman guilty
of state’s largest-ever
welfare scamBy Debra Barayuga
Star-Bulletin"Guilty, and I'm sorry," Peninatautele Fiamate, 34, said as she changed her plea before U.S. District Judge Helen Gillmor.
Fiamate, who has seven children, will be sentenced Dec. 12 for two counts of mail fraud and one count of food stamp fraud. Fiamate faces a maximum 30 years in prison, a $750,000 fine and an order of full restitution.
A federal grand jury in June indicted Fiamate on 20 counts of mail fraud and one count of food stamp fraud for applying for and accepting $342,300 in state and federal welfare assistance from 1990 through 1999. In the plea agreement, prosecutors dismissed the 18 other federal counts.
Fiamate has agreed to pay full restitution for her conduct based on an amount to be determined by the court, assistant U.S. attorney J. Michael Seabright said.
Fiamate began making payments to the state before she was indicted after the state Department of Human Services sent her a bill for $342,000, said her attorney, Rodney Ching.
"She admitted her wrong, is throwing herself to the mercy of the court and is trying to do right the best she knows how," Ching said.
Fiamate falsely reported on her yearly application for food stamp and medical benefits that she was the sole adult residing at her residence in the state's Palolo Homes housing project, Seabright said.
She failed to list her husband's income, which in 1996 was $56,000, on the application as well as on the income eligibility application to qualify for public housing assistance.
The food stamp fraud count involved receiving $39,000 worth of food stamps from July 1995 to September 1999 based on the false statements.
Fiamate's fraud became known in August 1999 when the state investigated a complaint to a state hot line that she had purchased a new sports-utility vehicle.
Gillmor said Fiamate could remain free on bail, pending her sentencing.
Fiamate, who dropped out of Kaimuki High School after the 10th grade, said she now works as a cashier at a fast-food restaurant.
The Associated Press contributed to this report.