Ex-FEMA worker, cousin plead guilty to $721K Hurricane Katrina fraud

Ex-FEMA worker pleads guilty to $721K fraud

JACKSON, Miss. — A former Federal Emergency Management Agency worker and her cousin have pleaded guilty to orchestrating one of the biggest Hurricane Katrina scams to become public since the 2005 storm.

Former FEMA employee Lashonda Booker, 35, and her cousin, Peggy Hilton, 36, were charged Jan. 8 with conspiracy to commit mail fraud in a scheme to steal $721,000 that was meant for storm victims.

U.S. Attorney Donald Burkhalter has said it’s the biggest theft of Katrina money by individuals to be made public so far.

Sheila Wilbanks, a spokeswoman for the U.S. Attorney’s office, said they pleaded guilty Wednesday in U.S. District Court in Gulfport.

Sentencing is set for April 29. The two women face up to 20 years in prison and a $250,000 fine.