RICHMOND, VA – A Texas man has confessed to a cold-hearted scheme to siphon off funds donated to the American Red Cross for victims of Hurricane Harvey. Muata Khalif, 55, of Richardson, Texas, pleaded guilty Friday to conspiring to commit wire fraud, admitting he stole from those already devastated by the 2017 storm.
Court documents reveal Khalif, then residing in Emporia, Virginia, colluded with others to pilfer the identities of Texas residents. He then used this stolen information to fraudulently apply for and receive $400 disaster relief payments from the Red Cross’s “Immediate Assistance Program.” The program, funded by public donations, was designed to provide quick financial aid to those reeling from the widespread damage caused by Hurricane Harvey in Texas and Louisiana.
Khalif wasn’t just passively collecting checks. Between October 2017 and October 2017, he embarked on a five-day spree, traveling to Wal-Mart Money Centers in Emporia, Colonial Heights, Petersburg, and Midlothian, Virginia. He obtained client ID and reference numbers for at least 116 individuals, allowing him to claim the funds earmarked for them. The brazenness of the operation escalated when Khalif befriended and recruited a cashier at the Petersburg Wal-Mart, gaining an inside accomplice.
The pair worked together to fraudulently obtain 116 Red Cross disaster relief payments, totaling a staggering $46,000. This wasn’t just money; it was direct aid donated by Americans believing they were helping their fellow citizens rebuild their lives after Harvey. Khalif’s actions represent a particularly low blow, preying on the generosity of others and the vulnerability of hurricane victims.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, announced the guilty plea following the acceptance by U.S. Magistrate Judge Mark R. Colombell. Assistant U.S. Attorneys Kaitlin Cooke and Thomas A. Garnett are prosecuting the case, aiming to bring Khalif to justice for his deceit.
Khalif is scheduled to be sentenced on November 17th and faces a maximum penalty of 20 years in prison. While federal guidelines often result in lesser sentences, the judge will consider the U.S. Sentencing Guidelines and other factors when determining Khalif’s punishment. Court documents are available on the U.S. Attorney’s Office website for the Eastern District of Virginia and through PACER under Case No. 3:22-cr-29.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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