A 26-year-old woman from Houston, Texas, is set to face federal charges for allegedly siphoning over half a million dollars in disaster relief loans through a complex scheme involving multiple government agencies and a bank.
Khalia Douglas, 26, is expected to make her initial appearance before U.S. District Judge Yvonne Ho at 2 p.m. in a federal court in Houston, announced U.S. Attorney Alamdar S. Hamdani.
According to the criminal information filed April 16, Douglas allegedly submitted false and fraudulent applications to the Federal Emergency Management Agency (FEMA), Small Business Administration, the U.S. government, and a bank for financial assistance between March 2020 and June 2021.
As part of the alleged scheme, Douglas gave instructions to co-conspirators on how to fraudulently apply for FEMA assistance and allegedly assisted others in applying for FEMA rental assistance. Douglas allegedly received payment from co-conspirators for assisting them in filing fraudulent FEMA applications for assistance with rentals, critical needs, and personal property assistance.
Douglas also helped others in filing false applications for Paycheck Protection Payment loans, Economic Injury Disaster Loan assistance, and bank loans, according to the charges. The alleged scheme caused an attempted loss of $514,415, if convicted.
If convicted, Douglas faces up to five years in federal prison and a possible $250,000 maximum fine. The Department of Homeland Security – Office of Inspector General conducted the investigation, and Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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