An investigation has been launched after University of Hawaii (UH) officials handed $200,000 (£125,000) to a talent agency to book Stevie Wonder for a gig.
A third-party concert promoter acting on behalf of UH wired the deposit to a company in Miami, Florida to hire the singer for an athletics benefit show on 18 August (12).
However, the event was called off when it emerged it had been planned without Wonder's consent.
Bosses at UH are now trying to recoup the funds and have contacted America's Federal Bureau of Investigation (Fbi).
Refunds are being offered after 6,000 tickets were sold for the event.