A 27-year-old woman has been sentenced for conspiracy to commit wire fraud, announced U.S. Attorney Nicholas J. Ganjei Friday.
Khalia Douglas, of Houston, pleaded guilty June 13, 2024. She was ordered to serve 24 months in federal prison to be immediately followed by three years of supervised release. She must also pay $318,361.11 in restitution.
The Fraudulent Scheme
At the hearing, prosecutors described her criminal history and how her fraudulent scheme lasted 15 months. Douglas reportedly submitted applications for approximately 100 different individuals, and that without her, they would not have been possible.
In handing down the sentence, the court noted her fraudulent scheme took advantage of programs that were designed to help those in need during a troubling time for the entire country.
The Scheme’s Evolution
From March 2020 until June 2021, Douglas reportedly conspired with others to submit false and fraudulent applications to the Federal Emergency Management Agency (FEMA), Small Business Administration (SBA), the U.S. government, and a bank for financial assistance.
Using Social Media to Promote the Scheme
At the time of her plea, Douglas admitted to using her Instagram account “GoGettaKaee” to post multiple stories advertising her involvement in filing fraudulent SBA COVID-19 Economic Injury Disaster Loan (EIDL) applications. Such posts include “SBA is back open. $350 for method. Yes im doing applications $100 upfront & $2k when your money hit. You’ll need a real bank account.”
Payment for Services
Douglas accepted payment for her services via CashApp where her clients would make payments to her and send a screenshot of the completed payment as proof, according to prosecutors.
Other Fraudulent Activities
She also submitted false EIDL applications for herself and false Paycheck Protection Program (PPP) applications for another. Further investigation revealed Douglas filed eight FEMA disaster assistance applications related to Hurricane Laura. Additionally, Douglas committed several other fraudulent acts, including filing false unemployment benefits in Kansas, using another person’s name to rent her apartment, and using another person’s bank account to deposit counterfeit checks.
Consequences of the Scheme
Due to her actions, the EIDL, PPP, and the bank lost a total of $318,361.11 with an attempted loss amount of $514,415. Douglas received approximately $23,775 for her services.
Conclusion
Khalia Douglas’s fraudulent scheme took advantage of programs designed to help those in need during a difficult time. Her actions caused significant financial harm to the EIDL, PPP, and the bank, and she was held accountable for her actions.
Frequently Asked Questions
Q: What was Khalia Douglas’s sentence?
A: Douglas was sentenced to serve 24 months in federal prison, followed by three years of supervised release, and must pay $318,361.11 in restitution.
Q: How long did the fraudulent scheme last?
A: The scheme lasted 15 months, from March 2020 until June 2021.
Q: How many applications were submitted?
A: Douglas submitted approximately 100 different applications, including EIDL, PPP, and FEMA applications.
Q: How much was lost due to the scheme?
A: The EIDL, PPP, and the bank lost a total of $318,361.11, with an attempted loss amount of $514,415.
Q: How much did Douglas receive for her services?
A: Douglas received approximately $23,775 for her services.
