Houston woman admits she filed over $500,000 in fraudulent disaster relief loans
The feds say Khalia Douglas, 26, submitted fraudulent applications to FEMA, the Small Business Administration
HOUSTON — A 26-year-old Houston woman has pleaded guilty to conspiracy to commit wire fraud in connection with fraudulent disaster relief loans.
Khalia Douglas admitted she used Instagram to advertise that she was filing fake COVID-19 claims with the Small Business Administration. She charged $100 upfront and $2,000 when they got their money, according to U.S. Attorney Alamdar S. Hamdani.
The feds say Douglas also submitted fraudulent applications for others to FEMA, including eight related to Hurricane Laura.
She's accused of also filing false unemployment benefits in Kansas, using another person’s name to rent her apartment and using another person’s bank account to deposit counterfeit checks.
Authorities discovered her phone and computer contained a multitude of evidence, including text messages and emails relating to fraudulent applications, false tax documents and images of counterfeit government identification documents.
The feds say Douglas filed over $500,000 worth of claims and over $350,000 was actually paid out. Douglas received approximately $23,775 for her services.
When Douglas is sentenced, she could get up to five years in federal prison and a fine of up to $250,000.