DOJ’s new National Fraud Enforcement Division established to prosecute those who steal or fraudulently misuse taxpayer dollars
HOUSTON – A 56-year-old local resident has pleaded guilty to wire fraud, fraud in connection with a major disaster, threatening to kill a witness and assaulting/impeding a law enforcement officer, announced Acting U.S. Attorney John G.E. Marck.

From 2019 through 2024, Sharai 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 Department of Housing and Urban Development program. The home Poteet received was the largest the program had built at that time.

The investigation revealed Poteet submitted three fraudulent applications for disaster assistance from the Federal Emergency Management Agency for storms that occurred between 2021 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.

“Sharai Poteet exploited programs intended to assist vulnerable hurricane victims and used those funds for her own personal enrichment,” said Marck. “When individuals steal taxpayer-funded resources meant to help those in need, they are not just committing fraud – they are undermining the systems that keep families safe and communities stable.”

“The taxpayer has no tolerance for those who steal from federal public aid – the sole goal of which is to help victims rebuild and move forward with their lives.” said Robert Lawler, HUD Office of Inspector General’s Deputy Assistant Inspector General for Investigations. “We will continue to work with our partners at the U.S. Attorney’s Office to aggressively pursue fraudsters who steal disaster grant funds to enrich themselves.”

U.S. District Judge Kenneth Hoyt accepted the plea and has set sentencing for Sept. 21. At that time, Poteet faces up to 30 years in federal prison and a possible $1 million maximum fine.

She was permitted to remain on bond pending that hearing.

HUD-OIG conducted the investigation. Special Assistant U.S. Attorney Shalimar Addy is prosecuting 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.