FEMA Fraud: Two Indicted for False Claims Related to Lahaina and California Wildfires

Ken Sorenson


Archyde
https://www.archyde.com

2025-07-18
Honolulu Duo Charged with FEMA Disaster Fraud Scheme

HONOLULU – Two Honolulu residents face federal charges for allegedly defrauding the Federal Emergency Management Agency (FEMA) thru a sophisticated wire fraud scheme. Daylyn Harris, 34, and Chelsea Johnson, 32, were arrested on July 15, 2025.

A federal grand jury returned a seven-count indictment on July 17,2025,accusing Harris and Johnson of submitting fraudulent claims for disaster-related losses they did not actually experience. The indictment details how the pair allegedly targeted federal disaster relief funds.

Harris is accused of falsely claiming to have resided in Lahaina, Hawaii, and suffered income and housing losses following the August and September 2023 lahaina fires. These claims included alleged losses of income, housing, medical bills, and property. However, the indictment states Harris did not live in the disaster area nor did he suffer such losses.

Johnson allegedly facilitated Harris’s fraudulent claim by posing as his landlord in Maui.Moreover, the indictment claims Johnson filed her own fraudulent request in January 2025. She allegedly claimed to have lived in pacific Palisades, California, during the California fires and sought compensation for lost housing and other expenses.

Together, Harris and Johnson are believed to have received over $60,000 in disaster relief funds from FEMA through these alleged false claims. The charges carry significant penalties if convicted.

If found guilty of the offenses outlined in the indictment, Harris and Johnson could each face up to thirty years in prison. Additionally,each count carries a potential fine of up to $1,000,000.

It is crucial to remember that the charges in the indictment are merely accusations. the defendants are presumed innocent unless and until they are proven guilty beyond a reasonable doubt in a court of law.Any sentence imposed would be resolute by a United States District Judge.

This investigation was spearheaded by the Department of Homeland Security – Office of the inspector General. The Honolulu Police Department provided crucial assistance in the case.

Understanding Disaster Relief Fraud

Disaster relief programs, like those administered by FEMA, are designed to provide essential aid to individuals and communities impacted by natural disasters. Fraudulent claims divert these vital resources from those genuinely in need.

Such schemes frequently enough involve falsifying losses, misrepresenting residency, or submitting duplicate claims. Federal agencies investigate these allegations rigorously to maintain the integrity of relief efforts.

Consequences for disaster fraud can be severe, including hefty fines and lengthy prison sentences, underscoring the importance of honest applications.

Frequently asked Questions About FEMA Fraud

What is FEMA disaster relief fraud?

FEMA disaster relief fraud involves knowingly submitting false or exaggerated claims to FEMA for financial assistance or benefits following a declared disaster.

What types of fraudulent claims can occur?

common fraudulent claims include falsely reporting income or housing loss, fabricating property damage, or claiming residency in a disaster area when one was not present.

What are the penalties for FEMA fraud?

Penalties can include substantial fines, restitution, and imprisonment, often with severe sentences depending on the amount defrauded and the number of counts.

Who investigates FEMA fraud?

Agencies like the Department of Homeland Security’s Office of inspector General and the FBI, along with local law enforcement, typically investigate allegations of FEMA fraud.

Is it possible to be presumed innocent if charged with FEMA fraud?

Yes, defendants are presumed innocent until proven guilty in a court of law, and any sentencing is determined by a judge based on legal guidelines.

What are your thoughts on this case and the importance of protecting disaster relief funds? Share your views in the comments below!

What are the potential penalties for individuals convicted of FEMA fraud?

FEMA Fraud: Two Indicted for False Claims Related to Lahaina adn California Wildfires

Understanding the Recent Indictments

Recent news highlights a disturbing trend: FEMA fraud. On July 18, 2025, it was announced that two individuals have been indicted on federal charges for submitting false claims related to disaster relief funds intended for victims of the devastating Lahaina wildfires in Hawaii and the California wildfires. This case underscores the importance of vigilance and the severe consequences of exploiting disaster relief programs. The charges stem from alleged attempts to defraud the Federal Emergency Management Agency (FEMA) of funds earmarked for essential recovery needs.

Details of the Alleged fraud

The indictments detail a scheme involving inflated or fabricated losses resulting from the wildfires. Specifically, the individuals are accused of:

Submitting false documentation: This included altered receipts, forged bank statements, and fabricated damage assessments.

Claiming ineligible expenses: Funds were allegedly requested for expenses not directly related to wildfire damage, such as pre-existing debts or luxury items.

Multiple applications: Attempts were made to file multiple claims under different identities or for the same losses.

Identity theft: In some instances, the scheme allegedly involved using the identities of others without their knowledge or consent to apply for disaster assistance.

The specific amounts defrauded are still under inquiry, but authorities indicate the total could be ample. The charges carry potential penalties including significant fines and lengthy prison sentences. This case is being prosecuted by the Department of Justice’s Disaster Fraud Task Force.

FEMA Disaster Assistance Programs: A Rapid Overview

FEMA offers a range of programs to assist individuals and communities recovering from disasters. Key programs include:

Individual Assistance (IA): Provides financial assistance for temporary housing, home repairs, essential personal property replacement, and othre serious disaster-related needs.

Public Assistance (PA): Offers funding to state, local, tribal, and territorial governments, and certain private nonprofit organizations for debris removal, emergency protective measures, and infrastructure restoration.

Hazard Mitigation Grant Program (HMGP): supports long-term mitigation measures to reduce the risk of future disasters.

Fire Management Assistance Grants (FMAG): As FEMA currently supports wildfire response across the country (fema.gov), these grants help states, local tribes and territories manage wildfires.

Understanding these programs is crucial, not only for those seeking assistance but also for recognizing potential fraudulent activity.

Why Disaster Fraud is a Serious Crime

Exploiting disaster relief programs has far-reaching consequences:

Depletes limited resources: fraudulent claims divert funds away from legitimate victims who desperately need assistance.

Undermines public trust: It erodes confidence in government programs and hinders future disaster response efforts.

Prolongs recovery: When funds are misallocated, the overall recovery process is delayed.

Legal repercussions: FEMA fraud is a federal crime with severe penalties, including imprisonment and substantial fines.

Recognizing and Reporting FEMA fraud

Protecting disaster relief funds requires a collective effort. Here’s how you can definitely help:

Be aware of red flags: Watch out for unsolicited offers of assistance,pressure to apply for benefits you don’t need,or requests for personal information from unknown sources.

Verify information: Always confirm the legitimacy of any association offering disaster assistance.

Report suspicious activity: If you suspect fraud, report it instantly to the appropriate authorities.

Were to report FEMA Fraud:

FEMA Hotline: [phone]-FEMA (3362)

DisasterFraud.gov: The official website for reporting disaster fraud, waste, and abuse.

FBI: Report suspected fraud to your local FBI field office.

Office of Inspector General (OIG): FEMA’s OIG investigates allegations of fraud and misconduct within the agency.

Recent Cases of Disaster Fraud

While the Lahaina and California wildfire case is recent, it’s not isolated. past instances of disaster relief fraud include:

Hurricane Katrina (2005): Numerous individuals were prosecuted for submitting false claims for damages,inflating losses,and stealing identities.

Hurricane Harvey (2017): Fraudulent schemes involved fake charities, inflated repair costs, and misuse of SBA loans.

COVID-19 Pandemic Relief: The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs saw widespread fraud, with billions of dollars misallocated.

These cases demonstrate the persistent threat of fraud following major disasters and the ongoing efforts to combat it.

Protecting Yourself from Becoming a Victim of Fraud

Beyond reporting suspicious activity, individuals can take steps to protect themselves:

Secure your personal information: Protect your Social Security number, bank account details, and other sensitive data.

Be cautious of contractors: Verify licenses and insurance before hiring anyone to perform disaster-related repairs. Get multiple quotes and written contracts.

Review your FEMA documentation: Carefully review all applications and documents before submitting them.

Monitor your credit report: Check your credit report regularly for any unauthorized activity.

The Role of Technology in Fraud Detection

FEMA and other agencies are increasingly utilizing technology to detect and prevent fraud. This includes:

Data analytics: Analyzing large datasets to identify patterns of suspicious activity.

**Artificial intelligence