Houston woman admits filing more than $500,000 in fraudulent disaster relief loans

HOUSTON — A 26-year-old Houston woman has pleaded guilty to conspiracy to commit wire fraud in connection with fraudulent disaster relief loans.

Khalia Douglas admitted to using Instagram to announce that she was filing false COVID-19 claims with the Small Business Administration. She charged $100 up front and $2,000 when they received their money, according to U.S. Attorney Alamdar S. Hamdani.

The federal government says Douglas also submitted fraudulent claims to FEMA for others, including eight related to Hurricane Laura.

She is accused of also filing for false unemployment benefits in Kansas, using another person’s name to rent her apartment and using another person’s bank account to deposit counterfeit checks.

Authorities discovered that his phone and computer contained a wealth of evidence, including text messages and emails relating to fraudulent applications, false tax documents, and images of counterfeit government ID documents.

The federal government says Douglas filed claims worth more than $500,000 and more than $350,000 was actually paid. Douglas received approximately $23,775 for his services.

When Douglas is sentenced, she could face five years in federal prison and a fine of up to $250,000.