Porter Woman Sentenced to 71 Months in Hurricane Harvey Home Fraud
HOUSTON, Texas – A federal judge in Houston has sentenced a Porter woman to 71 months in prison for defrauding a Hurricane Harvey disaster program out of a custom home, then threatening to kill a witness and assaulting a federal agent.
U.S. District Judge Kenneth Hoyt sentenced 56-year-old Sharai Poteet to prison followed by three years of supervised release. She pleaded guilty 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.
Hoyt also ordered Poteet to pay $537,209 in restitution to the Department of Housing and Urban Development and the Federal Emergency Management Agency. The court ordered her into custody after the hearing.
Seven-bedroom home built with Harvey recovery money
From 2019 through 2024, Poteet ran a scheme to fraudulently obtain disaster-relief housing assistance and other federal benefits, according to the source. She submitted fraudulent loan applications that claimed 11 people lived in her household, including seven children and a disabled adult.
Those false claims got her a custom seven-bedroom home, a newly built house valued at $435,000. The money for construction came from a HUD program meant to help Hurricane Harvey victims. It was the largest home the program had built at that time.
Investigators also found that Poteet filed five fraudulent applications to FEMA for disaster assistance. The applications covered storms that struck between 2017 and 2024.
Threats and assault during the investigation
During the investigation, Poteet threatened a whistleblower in an effort to silence the person. She also assaulted a federal agent as she tried to flee during an operation to seize her cell phone.
At sentencing, the court heard additional evidence and testimony about the emotional toll her threats have taken on the victim and the victim’s family. The court also considered forgeries she committed after prosecutors charged her.
Prosecutors presented an internet search Poteet ran asking “what is the punishment for lying to FEMA.” Shortly afterward, she submitted a fraudulent FEMA application for hurricane disaster relief.
In handing down the sentence, the court cited the long duration of her crimes and her “complete disregard” for the people she hurt. That group included family members she put at risk of prosecution. The court said “without being charged, it is unlikely she would have stopped.”
Officials respond
“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. “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.”
Robert Lawler, deputy assistant inspector general for investigations with the HUD Office of Inspector General, said Poteet “exploited HUD’s disaster recovery programs intended to help Hurricane Harvey victims and then attempted to obstruct accountability for her crimes.”
“Rather than accept responsibility, Poteet used violence and intimidation against a whistleblower and a federal agent carrying out lawful duties,” Lawler said. “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.”
HUD Deputy Secretary Andrew Hughes said 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.”
HUD-OIG conducted the investigation. Special Assistant U.S. Attorney Shalimar Addy prosecuted the case.
