A 34-year-old woman has entered a guilty plea for playing a lead role in a scheme to fraudulently obtain disaster relief funds. Cora Chantail Custard, formerly a resident of Houston, has admitted to conspiracy to commit wire fraud which led to significant losses for multiple federal agencies. From March 2020 until March 2021, Custard operated, primarily through social media solicitations, to file fraudulent loan and benefit applications to the tune of approximately $620,000, according to the U.S. Attorney's Office for the Southern District of Texas.
Initial reports by the U.S. Attorney's Office detail that Custard, and her co-conspirators, strategically manipulated various aid systems. These included applications for the Small Business Administration (SBA), Federal Emergency Management Agency (FEMA), and state unemployment insurance agencies from states like Michigan and Illinois. Using her Facebook account, Custard brazenly advertised her services, claiming to quickly and fraudulently secure substantial payouts.
During her plea, Custard fessed up to the creation and submission of over 100 Economic Injury Disaster Loan applications, which led to 36 approved advance payments totaling $345,000. Her fraudulent efforts didn't stop there. She also lodged at least 30 false FEMA Disaster Benefit claims linked to Hurricanes Laura and Sally, which subsequently paid out roughly $75,000 for at least 16 of these sham applications, according to the same press release.
The investigation further uncovered over 100 deceitful unemployment insurance filings across various states, whereby at least 20 applications resulted in Custard and others receiving roughly $200,000. With her actions, Custard has not only pulled much-needed funds away from actual disaster victims but has also placed immense strain on the administrative bodies assigned to manage these emergencies and their aftermaths. The litany of agencies including Homeland Security OIG, IRS-CI, TIGTA, SSA-OIG, SBA-OIG, and the Department Labor-OIG conducted the investigation, working in concert to uncover the extensive fraud.
Custard currently awaits sentencing which is scheduled for January 2025. She feasibly faces up to five years in federal prison along with the potential for a $250,000 fine. Until her sentencing, she has been allowed to remain out on bond. The case is being prosecuted by Assistant U.S. Attorney Karen M. Lansden.
