Marion woman gets three years for Helene aid fraud

A Marion woman has been sentenced to three years in federal prison for collecting more than $30,000 in Hurricane Helene assistance by falsely claiming the storm destroyed her home.

Peggy Lee Cantrell, 41, was sentenced Sept. 17 by Chief U.S. District Judge Martin Reidinger, according to the U.S. Attorney’s Office for the Western District of North Carolina. She must repay $30,631.59 to the Federal Emergency Management Agency and serve four years of supervised release after prison.

Prosecutors said Cantrell was incarcerated when Helene struck western North Carolina in September 2024. The dwelling she claimed had been destroyed did not exist at the location when the storm hit.

Cantrell applied for FEMA assistance on Feb. 22, 2025, claiming a dwelling at 193 Beaver Creek Road in Marion was her primary residence and had been destroyed by Helene, according to court records cited by prosecutors.

She initially identified herself as a renter. Five days later, she changed her application to claim ownership. On Feb. 28, she told a FEMA inspector she owned a residential trailer at the location but did not own the land beneath it.

Prosecutors said Cantrell had never lived at, rented or owned a residence or structure at that address.

In March 2025, she submitted a handwritten letter claiming she had bought the dwelling for $8,500 and lived there for 25 years. She also claimed her important personal documents “got washed away by Hurricane Helene.”

FEMA paid the claim that month, wiring her $30,631.59.

“In the wake of Hurricane Helene, disaster relief was essential for rebuilding our community,” U.S. Attorney Russ Ferguson said. “Every dollar of that money should have gone to those that needed it.”

Cantrell pleaded guilty in October 2025 to fraud in connection with major disaster or emergency benefits.

At the time of the sentencing announcement, she was in federal custody after her bond was revoked for drug use, prosecutors said. She was awaiting assignment to a federal prison.

FEMA highlighted the case in an Oct. 5 press release, saying the agency investigated more than 2,000 fraud cases during fiscal year 2025. FEMA said it refers suspected fraud involving its Individual Assistance program to the Department of Homeland Security’s Office of Inspector General and other law enforcement agencies for investigation and possible prosecution.

“Those who steal disaster assistance from survivors will be investigated, prosecuted and held accountable. This woman’s actions, including committing fraud while incarcerated, are a blatant betrayal of disaster survivors and American taxpayers,” said FEMA Administrator Cameron Hamilton. “Funds intended to help North Carolina families rebuild after Hurricane Helene were instead stolen for personal gain. Every dollar taken through deception is a dollar unavailable to help communities recover. FEMA remains committed to reducing risks, building capabilities to detect and prevent fraud, and ensuring those who exploit federal disaster programs face serious consequences.”

President Trump’s Executive Order 14395 established the Task Force to Eliminate Fraud, bringing together federal agencies to coordinate a national strategy to stop fraud, waste and abuse in federal benefit programs. FEMA is fully engaged in strengthening eligibility verification, enhancing pre-payment controls and ensuring disaster assistance is delivered quickly and securely to eligible survivors. 

The Department of Homeland Security’s Office of Inspector General and FEMA’s Fraud Investigations and Inspections Division investigated Cantrell’s case. Assistant U.S. Attorney Don Gast prosecuted the case.

Review the PACER court files here.