Porter Woman Sentenced to 71 Months in Prison for $537K Hurricane Harvey Fraud

PORTER, TX -- A 56-year-old local resident has been ordered to federal prison for wire fraud, fraud in connection with a major disaster, threatening to kill a witness, and assaulting/impeding a law enforcement officer.

Sharai Poteet pleaded guilty June 1.

U.S. District Judge Kenneth Hoyt ordered Poteet to serve 71 months in federal prison to be immediately followed by three years of supervised release. She must also pay $537,209 in restitution to the Department of Housing and Urban Development and Federal Emergency Management Agency. At the hearing, the court considered additional evidence and testimony that described the devasting emotional impact her threats have had on the victim and victim’s family as well as forgeries she committed after being charged with these crimes. The evidence also demonstrated Poteet’s brazen disregard for the law, including an internet search she conducted asking “what is the punishment for lying to FEMA,” followed shortly after by her submission of a fraudulent application to FEMA for hurricane disaster relief. In handing down the sentence, the court noted the lengthy duration of her crimes as well as the “complete disregard” for who her actions hurt, including placing her family members at risk of prosecution. The court commented that “without being charged, it is unlikely she would have stopped” her despicable behavior.

“Sharai Poteet exploited HUD’s disaster recovery programs intended to help Hurricane Harvey victims and then attempted to obstruct accountability for her crimes,” said Deputy Assistant Inspector General for Investigations Robert Lawler with HUD, Office of Inspector General. “Rather than accept responsibility, Poteet used violence and intimidation against a whistleblower and a federal agent carrying out lawful duties. HUD-OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”

“Under President Trump, fraudsters are facing the consequences for stealing from taxpayers,” said Deputy Secretary Andrew Hughes of U.S. Department of Housing and Urban Development. “Despite her attempts to evade the law, Sharai Poteet is finally being held accountable for abusing HUD disaster relief funds, lying to obtain a newly built home valued at nearly half a million dollars, and stealing from those who lost everything in Hurricane Harvey. Fraudsters beware: HUD will leave no stone unturned until every dollar is accounted for and justice is served.”

From 2019 through 2024, Poteet engaged in a scheme to fraudulently obtain disaster-relief housing assistance and additional federal benefits. During the investigation, she also threatened to kill a witness and assaulted a federal officer.

Poteet submitted fraudulent loan applications claiming 11 people—including seven children and a disabled adult—were members of her household. As a result of the false claims, Poteet received assistance in the form of a custom seven-bedroom home.

The funds used to construct the home were intended to help Hurricane Harvey victims through a HUD program. The home Poteet received was the largest the program had built at that time.

The investigation revealed Poteet also submitted five fraudulent applications for disaster assistance from the FEMA for storms that occurred between 2017 and 2024. During the investigation, she threatened a whistleblower in an attempt to silence them.

Poteet also assaulted a federal agent while attempting to flee during an operation intended to seize her cell phone.

Poteet was ordered into custody following the sentencing.

HUD-OIG conducted the investigation. Special Assistant U.S. Attorney Shalimar Addy prosecuted the case.

The Department of Justice has created the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within federal benefit programs.