Western North Carolina Woman Indicted for $30K FEMA Fraud Linked to Hurricane Helene

ASHEVILLE, N.C. – A western North Carolina woman has been indicted by a federal grand jury on charges of disaster benefits fraud and aggravated identity theft after authorities say she falsely claimed FEMA funds for a property that did not exist when Hurricane Helene struck the region in September 2024.

According to federal investigators, 40-year-old Peggy Cantrell applied for disaster assistance nearly five months after Helene devastated parts of western North Carolina. She reported that her residence on Beaver Creek Road in Marion — where she claimed to have lived for 25 years — was severely damaged and that all of her important personal documents had been “washed away.”

Alleged Fraudulent Claims

The Federal Emergency Management Administration (FEMA) approved Cantrell’s application, issuing more than $30,600 in relief funds. However, officials later discovered that no dwelling existed at the address when Helene made landfall. Investigators also determined that Cantrell had been living in Wake County, an area outside the storm’s path.

Authorities allege that Cantrell forged documents to support her false claim, further misleading federal disaster recovery programs intended for legitimate victims.

Federal Response and Commitment

U.S. Department of Justice officials emphasized that disaster relief programs are highly vulnerable to fraud and that such misuse of taxpayer funds undermines recovery efforts.

“Disaster relief resources were intended to help Western North Carolina get back on its feet after the devastation left by Helene,” prosecutors said. “Knowing that federal funding is often followed by federal fraud, my office is committed to bringing to justice those who misuse taxpayer money for personal gain. Full recovery from Helene is going to take every available dollar.”

Possible Prison Sentence

If convicted on all charges, Cantrell faces up to 32 years in federal prison. The case remains ongoing, and federal prosecutors have not disclosed whether additional suspects are under investigation in connection with fraudulent FEMA claims following Hurricane Helene.

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