An Anchorage city councilor and her husband were accused of obtaining fraudulently greater than $1.6 millions in relief COVID-19 funds.
Officials from authorities from U.S. Attorney’s office say 41-year-old Rosalina Mavaega and her husband aged 44, Esau Fualema Sr. used money that was supposed go to the charity they established, House of Transformations.
The funds came through the Federal American Rescue Plan Act. Couple applied to receive a part of Anchorage’s share money in May 2021and received the money.
Prosecutors allege that the couple fraudulently claimed that their non-profit was using the funds to fund housing as well as treatment and training. Instead federal charges allege they have deposited money into their personal bank accounts in order to pay taxes on their business. They’re accuse of using this funds to get a loan or to purchase cryptocurrency.
Mayor Dave Bronson named Maveaga to two city commissions in 2022. She was ejected out of the Equal Rights Commission last week after a string of absences. She was still on the roster as a member in the housing and homeless commission.
The charges are a result of the findings of an inquiryby ProPublica as well as The Anchorage Daily News that found Maveaga and her husband were awarded one of the largest COVID-19 relief funds for 2021 despite fraud claims from the past.
The couple submitted a new grant of around $1.4 million dollars in the past however, they didn’t get it.
Elizabeth Aumavae was director of House of Transformations when federal authorities began investigating Mavaega as well as Fualema. She has since been removed from the website of the company. The brother of Aumavae, Uluao “Junior” Aumavae is Bronson’s chief financial officer. Bronson became president in the month of July following the grant of funds to the couple.
The federal grand jury been indicted Maveaga as well as Fualema on five counts of felony which include fraud, money laundering, and identity theft. They appeared in court on Friday. They both pleaded not guilty.
If found guilty the couple will face an average sentence of two years’ imprisonment.
