Hurricane Harvey relief fraud: 56-year-old Texas woman sentenced to federal prison

article Sharai Poteet (U.S. Attorney's Office, Southern District of Texas) The Brief A Porter woman was sentenced to nearly six years in federal prison for stealing more than $500,000 in hurricane disaster relief funds. Sharai Poteet fraudulently obtained a custom-built $435,000 home and FEMA aid, then threatened a witness and assaulted a federal agent. Poteet was taken into custody immediately and ordered to pay $537,209 in restitution to federal housing and emergency agencies. A 56-year-old Texas woman has been sentenced to nearly six years in federal prison for stealing more than half a million dollars in hurricane disaster relief, including a custom-built $435,000 home, before threatening to kill a witness and assaulting a federal agent, federal prosecutors announced Tuesday. Hurricane Harvey relief fraud U.S. District Judge Kenneth Hoyt ordered Sharai Poteet to serve 71 months in federal prison, followed by three years of supervised release, and pay $537,209 in restitution to the U.S. Department of Housing and Urban Development and the Federal Emergency Management Agency. Poteet pleaded guilty June 1 to wire fraud, fraud in connection with a major disaster, threatening to kill a witness and assaulting or impeding a law enforcement officer. What they're saying: "Sharai Poteet exploited programs intended to assist vulnerable hurricane victims and used those funds for her own personal enrichment," said U.S. Attorney Aaron Reitz. "When individuals steal taxpayer-funded resources meant to help those in need, they are not just committing fraud—they are undermining the systems that keep families safe and communities stable," U.S. Attorney Aaron Reitz said in a statement. The backstory: According to court records, Poteet engaged in a scheme from 2019 through 2024 to fraudulently obtain federal disaster-relief housing and financial assistance. She submitted false loan applications claiming 11 people, including seven children and a disabled adult, lived in her household. Based on those claims, Poteet received a newly constructed seven-bedroom home valued at $435,000 through a HUD recovery program for Hurricane Harvey victims, the largest home the program had built at that time. (U.S. Attorney's Office, Southern District of Texas) Investigators also found Poteet submitted five fraudulent FEMA disaster assistance applications tied to storms between 2017 and 2024. Evidence presented at sentencing showed she conducted an internet search asking "what is the punishment for lying to FEMA" shortly before submitting one of the fraudulent claims. During the federal investigation, Poteet threatened to kill a whistleblower in an attempt to silence them and later assaulted a federal agent while trying to flee during an operation to seize her cell phone. At the sentencing hearing, the court heard testimony regarding the emotional toll of Poteet's threats on the witness and their family, as well as evidence that she committed forgeries after being indicted. Judge Hoyt noted Poteet showed a "complete disregard" for the people hurt by her actions, including placing her own family members at risk of prosecution, and remarked that "without being charged, it is unlikely she would have stopped." Poteet was taken into custody immediately following the hearing. The HUD Office of Inspector General investigated the case. The Source: Information in this article is from the U.S. Attorney's Office, Southern District of Texas. Texas Houston Crime and Public Safety