Nicholas J. Ganjei United States Attorney for the Southern District of Texas | U.S. Attorney for the Southern District of Texas
A woman has been sentenced for her role in a fraud conspiracy that led to losses of approximately $620,000, according to an announcement from U.S. Attorney Nicholas J. Ganjei. Cora Chantail Custard, who was a resident of both Houston and San Antonio during the conspiracy, pleaded guilty on September 17, 2024.
U.S. District Judge David Hittner sentenced Custard to 57 months in federal prison followed by three years of supervised release. She has been ordered to pay $621,388 in restitution. Judge Hittner acknowledged the sophisticated methods Custard employed, using social media to promote her fraudulent services targeting the U.S. government and seven state agencies.
Custard's fraudulent activities took place from March 2020 to March 2021. She conspired with others to submit false loan applications for financial assistance for herself and others. Through her Facebook account, she advertised the filing of fraudulent disaster relief applications, often referring to the process as “doing apps,” and claimed these applications could yield between $6,000 and $8,000 within days of filing.
Custard orchestrated the submission of over 100 fraudulent Economic Injury Disaster Loan applications, at least 36 of which led to advance payments totaling $345,000. She also filed 30 false Federal Emergency Management Agency disaster benefit applications linked to Hurricanes Laura and Sally in 2020, resulting in payouts of about $75,000 for 16 applications.
Additionally, Custard filed over 100 fraudulent unemployment insurance applications across several states, including Michigan and Illinois, resulting in payments of around $200,000 from at least 20 applications. She was taken into custody at her sentencing.
The investigation was conducted by the Department of Homeland Security-Office of Inspector General (OIG), IRS Criminal Investigation, Treasury Inspector General for Tax Administration, Social Security Administration-OIG, Small Business Administration-OIG, and Department of Labor-OIG. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.
