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Honolulu FBI nabs alleged Waikiki welfare cheat

By Star-Advertiser staff

LAST UPDATED: 3:25 a.m. HST, Oct 18, 2013

A 66-year-old Waikiki man who allegedly swindled government programs ranging from welfare to student tuition assistance of a total of more than $200,000 was arrested, Honolulu FBI agents announced.

Agents arrested Vaughn G. Sherwood Thursday for theft of government property and being a felon in possession of a firearm, according to a news release issued by the FBI's Honolulu office. The arrest resulted from a joint investigation that included the FBI and Hawaii's Department of Human Services Investigations.

According to the criminal complaint, Sherwood allegedly duped government programs by receiving benefits under stolen identities and his own identity while failing to disclose significant assets to program administrators. Sherwood allegedly received welfare cash, Section 8 housing, food stamps, and federal student tuition assistance tallying more than $200,000.

In addition, FBI agents executing a search warrant of Sherwood's Waikiki condominium Thursday morning allegedly recovered two rifles and four handguns that Sherwood was not permitted to possess.

The maximum penalties for theft charge and firearms offense is 10 years in federal prison for each crime. Sherwood will be detained at a federal detention center in advance of a detention hearing, which is now set for Tuesday.

Sherwood Complaint

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