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A former Houston resident has pleaded guilty to conspiracy to commit wire fraud, as announced by U.S. Attorney Alamdar S. Hamdani of the Southern District of Texas.
Cora Chantail Custard, 34, admitted to conspiring with others from March 2020 to March 2021 to submit fraudulent loan applications to the Small Business Administration (SBA), Federal Emergency Management Agency (FEMA), and multiple state unemployment insurance programs. Her fraudulent activities led to over $620,000 in financial losses across various agencies.
Custard promoted her scheme on Facebook, advertising that she could secure between $6,000 and $8,000 per application within days. She was responsible for submitting over 100 fraudulent Economic Injury Disaster Loan applications, 36 of which resulted in $345,000 in payments. Additionally, Custard filed at least 30 fraudulent FEMA applications related to Hurricanes Laura and Sally, with 16 of those leading to $75,000 in payouts.
Her actions extended to unemployment insurance fraud, where she submitted more than 100 false claims in states like Michigan and Illinois. At least 20 of these applications resulted in approximately $200,000 in payments.
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Custard faces up to five years in federal prison and a fine of up to $250,000 at her sentencing in January 2025. She remains free on bond until the hearing.
The investigation was conducted by multiple agencies, including the Department of Homeland Security-Office of Inspector General, IRS-Criminal Investigation, and the SBA-OIG. Assistant U.S. Attorney Karen M. Lansden is leading the prosecution.