Home / Houston News / Houston woman pleads guilty to $500K wire fraud as victims of recent storms await for FEMA’s aid

Houston woman pleads guilty to $500K wire fraud as victims of recent storms await for FEMA’s aid

HOUSTON, Texas (KTRK) — Several victims of the May 16 storm have informed Eyewitness News that they are still awaiting the FEMA funds promised to them.

A tree damaged the brick wall along Ron Hale’s northwest Harris County yard.

“I have a wall that’s knocked over and some holes in my roof,” said Hale, who was affected by May’s severe storms in southeast Texas.

Strong winds also knocked down a fence at Kyndra Snoddy’s house.

Both Snoddy and Hale applied for and were approved for $750 in FEMA assistance back in May. However, by mid-June, they still hadn’t received the money.

“I’ve been calling the FEMA hotline repeatedly, but they haven’t been much help,” Snoddy said.

FEMA informed Eyewitness News that the Texas Department of Health and Human Services is responsible for handling the payments. However, calls and emails to the agency went unanswered on Friday.

Meanwhile, one individual had no difficulty securing FEMA funds. Khalia Douglas recently pleaded guilty to submitting eight fraudulent FEMA applications and numerous false PPP loan applications for herself and others.

The total fraud exceeded $500,000, with just over $350,000 approved.

“People who game the system deserve a special place in – well, you know where,” Hale commented.

Prosecutors revealed that Douglas promoted her fraudulent activities on Instagram, offering her services to others for a fee.

“$100 upfront to process your application,” read one of her posts.

A 2020 Department of Homeland Security audit discovered that FEMA lost $3 billion to potential fraud from 2003 to 2018, averaging $200 million per year.

Currently, the agency is predicting a $6.2 billion deficit.

“People exploiting the system are taking away from those who genuinely need help,” Hale added.

Snoddy, who lost her job shortly after the storm, stated that she now needs the funds more than ever.

“I’m currently looking for work, but in the meantime, I really need the money to pay for rent, which is overdue,” Snoddy explained.

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