A federal grand jury in Asheville returned a criminal indictment charging Peggy Lee Cantrell, 40, of Marion, North Carolina, with defrauding the Federal Emergency Management Administration (FEMA) following Tropical Storm Helene, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
"Disaster relief resources were intended to help Western North Carolina get back on its feet after the devastation left by Helene," said U.S. Attorney Ferguson. "Knowing that federal funding is often followed by federal fraud, my office is committed to ferreting out such fraud and our work is far from over. We will continue to bring to justice those who fraudulently used taxpayer money for personal gain because full recovery from Helene is going to take every available dollar."
Tropical Storm Helene struck the Western District of North Carolina on September 27, 2024, causing massive devastation, including extensive property damage and loss of life. On September 28, 2025, Tropical Storm Helene was declared a major disaster, and federal agencies were able to provide relief to affected individuals and entities in the impacted areas through financial assistance for repairs of impacted properties. FEMA made financial assistance and benefits available to individuals and families who were affected by the storm (victims). Victims, including renters and property owners, who lost the use of their residences could qualify for FEMA benefits. Specifically, victims could seek relief for home repair, personal property damage, transportation, medical expenses, and housing assistance, among other benefits.
According to allegations in the indictment, on or about February 22, 2025, Cantrell filed an application for disaster assistance with FEMA for a dwelling she claimed was located at 193 Beaver Creek Road, in Marion, and was damaged by Tropical Storm Helene. The indictment alleges that, in the application, Cantrell asserted that she rented the property and that the damaged dwelling was her primary residence. On or about February 27, 2025, Cantrell allegedly amended her FEMA application’s residential status from renter to owner of the damaged dwelling. Contrary to her claims, the indictment alleges that Cantrell never lived at, rented or owned a residence or structure at that location. In fact, no dwelling existed at that location at the time the storm struck the area, and Cantrell was residing in Wake County, well outside the effects of Tropical Storm Helene.
Then on February 28, 2025, Cantrell falsely represented to a FEMA inspector that she owned the residential trailer that was destroyed, but not the land where the trailer was placed. According to allegations contained in the indictment, on or about March 8, 2025, Cantrell submitted a handwritten letter to FEMA attesting that the information she provided was "true and correct." She allegedly wrote that she had purchased the dwelling from J.W. of South Carolina for $8,500 and that she had lived at 193 Beaver Creek Road for 25 years. She also falsely attested that that all of her important personal documents "got washed away by Hurricane Helene." In connection with her application, and as part of her fraudulent scheme, Cantrell also allegedly filed a falsified "Residential Property And Owner’s Association Disclosure Statement," to support her claim that she had purchased 193 Beaver Creek Road in 2005, from an individual identified as R.E., knowing that was not a true statement. The indictment alleges that, in the Disclosure Statement, Cantrell used the name and signature of R.E., without R.E.’s consent or knowledge, in order to convince FEMA of the validity of her claim for benefits.
On March 12, 2025, FEMA paid Cantrell’s false claim and wired $30,631.59 to Green Dot Bank in Pasadena, California. It is alleged that Cantrell withdrew funds from a credit union in Marion, North Carolina.
Cantrell appeared in federal court this morning. She is charged with fraud in connection with major disaster relief benefits.
Mandatory Facts:
* Defendant: Peggy Lee Cantrell
* Charges: Defrauding FEMA
* City and State: Asheville, North Carolina
* Date: February 22, 2025
* Sentence or Outcome: Currently pending
Related Federal Cases
- Peggy Lee Cantrell, FEMA Fraud, North Carolina 2024 · South Carolina
- Jacquese Traveon Underwood, Methamphetamine and Fentanyl Conspiracy, North Carolina 2020 · North Carolina
- Jacquese Traveon Underwood, Methamphetamine and Fentanyl Conspiracy, North Carolina 2023 · North Carolina
- Andre Ravon Payton, Illegal Possession of a Firearm and Ammunition by a Convicted Felon, North Carolina 2024 · New York
- Robert Cedrick Baker III, Gun Offense, North Carolina 2023 · New York
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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