May 12, 2025 | JacobiJournal.com – Disaster Relief Fraud: A Texas woman has been sentenced to nearly five years in federal prison for orchestrating a multi-agency disaster relief fraud scheme that caused over $620,000 in losses, according to the U.S. Attorney’s Office for the Southern District of Texas.
Sophisticated Scam Leveraged Social Media
Cora Chantail Custard, 35, who lived in both Houston and San Antonio during the conspiracy, pleaded guilty on September 17, 2024, to one count of conspiracy to commit wire fraud.
On sentencing day, U.S. District Judge David Hittner imposed a 57-month prison term, followed by three years of supervised release. Custard must also pay $621,388 in restitution. The court emphasized the sophistication of the scheme, which included leveraging social media—particularly Facebook—to attract clients and advertise her illegal services.
Fraud Spanned Federal and State Programs
From March 2020 to March 2021, Custard worked with co-conspirators to submit fraudulent disaster relief applications on behalf of herself and others. Using her Facebook page, she encouraged followers to “do apps” that could yield between $6,000 and $8,000 within a week.
Authorities say she submitted or assisted in submitting over 100 false Economic Injury Disaster Loan (EIDL) applications, with at least 36 of them leading to $345,000 in advance payments.
Custard also filed 30 fake FEMA disaster claims related to Hurricane Laura (August 2020) and Hurricane Sally (September 2020). Sixteen of those applications were approved, producing about $75,000 in payments.
Unemployment Insurance Also Targeted
Beyond federal relief programs, Custard allegedly filed over 100 fraudulent unemployment insurance claims across multiple states, including Michigan and Illinois. These applications generated roughly $200,000 in payouts.
Federal prosecutors said she not only defrauded the U.S. government but also seven different state agencies. At sentencing, she was remanded into custody immediately.
For more on how the DOJ prosecutes fraud, visit the U.S. Department of Justice Fraud Section.
FAQs: Disaster Relief Fraud Sentencing and Impact
What is disaster relief fraud and how did this scheme work?
Disaster relief fraud involves submitting false claims for government aid after natural disasters. In this case, the Texas woman used social media to promote fake applications for EIDL, FEMA, and unemployment programs, resulting in $620,000 in fraudulent payments.
What agencies were defrauded in this disaster relief fraud case?
The fraud targeted multiple federal and state agencies, including the Small Business Administration (SBA), FEMA, and state unemployment departments. Over 100 false EIDL applications and 30 fake FEMA claims were filed in the 2020–2021 period.
What are the legal consequences of disaster relief fraud?
In this 2025 case, the defendant received 57 months in federal prison, supervised release, and was ordered to pay full restitution. Disaster relief fraud carries severe penalties under federal law, especially when it impacts multiple states and programs.
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