Last Updated on September 17, 2026 2:38 pm
ASHEVILLE, N.C. — Chief U.S. District Judge Martin Reidinger sentenced Peggy Lee Cantrell, 41, of Marion, North Carolina, to three years in prison followed by four years of supervised release for defrauding the Federal Emergency Management Agency (FEMA) following Hurricane Helene, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Cantrell was also ordered to pay restitution in the amount of $30,631.59 to FEMA.
“In the wake of Hurricane Helene, disaster relief was essential for rebuilding our community. Every dollar of that money should have gone to those that needed it. Instead, Cantrell stole that taxpayer money — and committed her fraud while she was in jail,” said U.S. Attorney Russ Ferguson. “We will continue to root out fraud and prosecute those who exploit federal programs, because every dollar taken through fraud is a dollar that cannot help our communities recover.”
According to court records, on or about Feb. 22, 2025, Cantrell filed an application for disaster assistance with FEMA for a dwelling she claimed was located at 193 Beaver Creek Road in Marion, and that she falsely claimed was destroyed by Hurricane Helene in September 2024. In the application, Cantrell asserted that she rented the property and that the damaged dwelling was her primary residence. On or about Feb. 27, 2025, Cantrell falsely amended her FEMA application's residential status from renter to owner of the damaged dwelling. Then, on Feb. 28, 2025, Cantrell falsely represented to a FEMA inspector that she owned the residential trailer that was destroyed, but not the land where the trailer was placed.
Contrary to her claims, Cantrell never lived at, rented, or owned a residence or structure at that location, and no dwelling existed at that location at the time the storm struck the area. At the time Hurricane Helene hit Western North Carolina, Cantrell was an inmate with the North Carolina Department of Adult Corrections and outside the effects of the storm.
Court records show that, in March 2025, Cantrell submitted a handwritten letter to FEMA attesting that the information she had provided was “true and correct,” falsely claiming that she had purchased the dwelling for $8,500 and that she had lived there for 25 years. She also falsely attested that all of her important personal documents “got washed away by Hurricane Helene.” The same month, FEMA paid Cantrell's false claim and wired her $30,631.59.
In October 2025, Cantrell pleaded guilty to fraud in connection with a major disaster or emergency benefits. She is currently in federal custody after her bond was revoked for drug use. She will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney Ferguson commended the U.S. Department of Homeland Security, Office of the Inspector General, and FEMA's Fraud Investigations and Inspections Division for their investigation of the case. Assistant U.S. Attorney Don Gast of the U.S. Attorney's Office in Asheville prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The division is focused on investigating and prosecuting those who commit fraud against the American people, supporting President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within federal benefit programs.
