North Carolina’s Ashville.Following allegations by authorities that she fraudulently claimed FEMA payments for a property that did not exist when Hurricane Helene hit the area in September 2024, a federal grand jury indicted a lady from western North Carolina on charges of disaster benefits fraud and aggravated identity theft.
Nearly five months after Helene ravaged sections of western North Carolina, 40-year-old Peggy Cantrell applied for disaster compensation, according to federal investigators. She stated that all of her significant personal documents had been washed away, and that her Marion home on Beaver Creek Road, where she claimed to have lived for 25 years, was seriously damaged.
Alleged Fraudulent Claims
Cantrell’s application was accepted by the Federal Emergency Management Administration (FEMA), which then released more than $30,600 in recovery funding. Officials eventually learned, however, that when Helene made landfall, there was no residence at the address. Cantrell had been residing in Wake County, which is outside the storm’s path, investigators also discovered.
Cantrell allegedly falsified documentation to back up her phony claim, further deceiving federal disaster recovery programs meant for real victims, according to authorities.
Federal Response and Commitment
Officials from the U.S. Department of Justice stressed that fraud is a serious risk to disaster relief programs and that such misappropriation of public monies impedes efforts to recover.
According to prosecutors, the purpose of disaster relief resources was to assist Western North Carolina in recovering from the destruction caused by Helene. Being aware that federal fraud frequently follows federal financing, my office is dedicated to prosecuting those who embezzle public funds for private benefit. Every dollar will be needed to fully recover from Helene.
Possible Prison Sentence
Cantrell could spend up to 32 years in federal prison if found guilty on all counts. Federal prosecutors have not revealed whether any other defendants are being investigated in relation to false FEMA claims made after Hurricane Helene, and the case is still pending.
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