A 56-year-old Texas woman built a custom seven-bedroom mansion with federal disaster relief monies intended for Hurricane Harvey victims, according to authorities.
Sharai Poteet was sentenced to 71 months in prison after pleading guilty to fraud, threatening witnesses, and assaulting a federal officer.
U.S. District Judge Kenneth Hoyt ordered her to spend three years of supervised release following her prison sentence and pay $537,209 in restitution to the Department of Housing and Urban Development and the Federal Emergency Management Agency.
According to the Justice Department, Poteet used false information to apply for disaster assistance housing and other federal benefits between 2019 and 2024. She said that 11 individuals lived in her home, including seven children and a disabled adult. The allegations resulted in help for a custom seven-bedroom home constructed with cash intended for Hurricane Harvey victims. Prosecutors say it was the largest residence built under the program at the time.
Investigators also discovered that Poteet submitted five false FEMA disaster assistance applications for storms between 2017 and 2024. During the investigation, she threatened a whistleblower and assaulted a federal agent while attempting to evade an operation to seize her cellphone.
At sentencing. The judge emphasized the length of her crimes and her “complete disregard” for the persons involved. Poteet was taken into custody following 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.
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