A federal grand jury in Asheville has indicted Peggy Lee Cantrell, 40, of Marion, North Carolina, on charges related to defrauding the Federal Emergency Management Administration (FEMA) following Tropical Storm Helene. The announcement was made by Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
“Disaster relief resources were intended to help Western North Carolina get back on its feet after the devastation left by Helene,” said U.S. Attorney Ferguson. “Knowing that federal funding is often followed by federal fraud, my office is committed to ferreting out such fraud and our work is far from over. We will continue to bring to justice those who fraudulently used taxpayer money for personal gain because full recovery from Helene is going to take every available dollar.”
Tropical Storm Helene struck the region on September 27, 2024, resulting in significant property damage and loss of life. Federal disaster status was declared the next day, allowing agencies like FEMA to offer financial assistance for repairs and other needs to those affected.
According to the indictment, Cantrell applied for FEMA disaster assistance on February 22, 2025, claiming her primary residence at 193 Beaver Creek Road in Marion had been damaged by the storm. She initially stated she rented the property but later amended her application to claim ownership. Authorities allege that Cantrell never lived at or owned a residence at that address; there was no dwelling there when the storm hit and she was residing elsewhere.
The indictment further alleges that Cantrell misrepresented facts during a FEMA inspection and submitted falsified documents—including a letter stating she had lived at the claimed address for 25 years and that important documents were lost due to Hurricane Helene. She also allegedly filed a false disclosure statement using another individual’s name without consent.
FEMA paid out $30,631.59 based on Cantrell’s claim in March 2025; funds were wired to an account in California before being withdrawn locally.
Cantrell appeared in court this morning and faces charges of fraud related to major disaster benefits as well as aggravated identity theft. If convicted on all counts, she could face up to 32 years in prison—30 years for disaster benefits fraud plus two consecutive years for identity theft.
The U.S. Department of Homeland Security Office of Inspector General and FEMA’s Fraud Investigations Division investigated the case. The U.S. Attorney’s Office in Asheville is prosecuting it.
U.S. authorities encourage anyone with information about disaster-related fraud involving federal programs like FEMA’s relief efforts to contact the National Center for Disaster Fraud via phone or online complaint form (https://www.justice.gov/DisasterComplaintForm).
