Hurricane Harvey fraudster who threatened to kill a witness sentenced to nearly 6 years in prison
Sharai Poteet falsely claimed 11 household members to secure a custom seven-bedroom home worth $435,000 through a program intended to help Hurricane Harvey victims.
FILE VIDEO: Remembering Hurricane Harvey 5 years later
FILE VIDEO: It's been five years since Hurricane Harvey wreaked havoc on Texas. After making landfall, the storm stalled in the Houston area for four days unleashing relentless rain causing catastrophic flooding. FOX Weather's Britta Merwin has a look back at Harvey's devastation and how the city and surrounding areas have recovered.
THE TAKEAWAY
- A Texas woman was sentenced to nearly six years in prison after fraudulently obtaining a $435,000 home through a Hurricane Harvey recovery program.
- Sharai Poteet threatened to kill a witness and assaulted a federal agent during the investigation.
- Hurricane Harvey devastated parts of Texas and Louisiana in August 2017, causing an estimated $125 billion in damage.
HOUSTON – A Texas woman who lied her way into a custom seven-bedroom home built with Hurricane Harvey relief funds — then threatened to kill a witness and assaulted a federal agent — is headed to prison.
Sharai Poteet, 56, of Porter, was sentenced to 71 months in federal prison and ordered to pay $537,209 in restitution to the Department of Housing and Urban Development (HUD) and the Federal Emergency Management Agency (FEMA), according to the U.S. Department of Justice.
Sharai Poteet was sentenced to 71 months in federal prison in a Hurricane Harvey relief fraud case involving a $435,000 home. (U.S. Department of Justice / FOX Weather)
Poteet pleaded guilty on June 1 to wire fraud, fraud in connection with a major disaster, threatening to kill a witness and assaulting or impeding a law enforcement officer.
Evidence presented at sentencing included a revealing internet search: "what is the punishment for lying to FEMA." Shortly afterward, prosecutors said Poteet submitted a fraudulent application for hurricane disaster relief.
"Sharai Poteet exploited programs intended to assist vulnerable hurricane victims and used those funds for her own personal enrichment," said U.S. Attorney Aaron Reitz.
Hurricane Harvey satellite image from 2017. (NOAA)
"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."
Following Hurricane Harvey's devastating impacts, from 2019 through 2024, Poteet carried out a scheme to fraudulently obtain disaster-relief housing assistance and other federal benefits, prosecutors said.
WHY CRIME HEATS UP DURING THE SUMMER
She falsely claimed 11 people — including seven children and a disabled adult — were members of her household.
Those fraudulent applications secured her a newly built, seven-bedroom home valued at $435,000 through a HUD program intended to help Hurricane Harvey victims.
A home sits damaged after a tornado hit Hawley, Texas on May 2, 2024. (@scrosWX / X / FOX Weather)
At the time, it was the largest home the program had built, according to the DOJ.
Investigators also uncovered five fraudulent FEMA disaster assistance applications tied to storms between 2017 and 2024.
HURRICANE HARVEY: BY THE NUMBERS
As authorities investigated, Poteet threatened to kill a whistleblower in an attempt to silence them, in addition to assaulting a federal agent while attempting to flee during an operation to seize her cellphone.
At sentencing, the court heard testimony about the emotional toll her threats took on the witness and the witness’s family, along with evidence that Poteet committed forgeries after being charged.
People walk through the flooded waters of Telephone Rd. in Houston on August 27, 2017 as the US fourth city city battles with tropical storm Harvey and resulting floods. (THOMAS SHEA/AFP via Getty Images / Getty Images)
U.S. District Judge Kenneth Hoyt cited her "complete disregard" for those harmed by her actions, including family members she placed at risk of prosecution.
"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," said HUD Deputy Secretary Andrew Hughes.
Hurricane Harvey slammed into the Texas coast near Rockport on Aug. 25, 2017, as a Category 4 storm with 130 mph winds before unleashing catastrophic flooding across southeastern Texas.
Harvey devastated parts of Texas and Louisiana, causing $125 billion in damage, according to the USGS, while FEMA reported providing more than $1.6 billion in grants to over 373,000 Texas individuals and households.