A 56-year-old Texas woman used federal disaster-relief funds intended for Hurricane Harvey victims to build a custom seven-bedroom home, prosecutors said.
Sharai Poteet was sentenced to 71 months in prison after pleading guilty to fraud, threatening a witness and assaulting a federal officer.
U.S. District Judge Kenneth Hoyt ordered her to serve three years of supervised release after prison and pay $537,209 in restitution to the Department of Housing and Urban Development and the Federal Emergency Management Agency.
PREVIOUS STORY| Porter woman indicted for $435K Hurricane Harvey home fraud, threatening witness, and assaulting federal officer
From 2019 to 2024, Poteet used false information to seek disaster-relief housing and other federal benefits, according to the Justice Department. She claimed 11 people, including seven children and a disabled adult, lived in her household. The claims led to assistance for a custom seven-bedroom home, built with funds intended for Hurricane Harvey victims. It was the largest home built through the program at the time, prosecutors said.
Investigators also found that Poteet submitted five fraudulent FEMA disaster assistance applications for storms from 2017 to 2024. During the investigation, she threatened a whistleblower and assaulted a federal agent as she tried to flee an operation to seize her cellphone.
At sentencing. the judge cited the duration of her crimes and her “complete disregard” for the people affected. Poteet was taken into custody after the hearing.
“Sharai Poteet exploited programs intended to assist vulnerable hurricane victims and used those funds for her own personal enrichment,” U.S. Attorney Aaron Reitz said.
