United States v. Cora Chantail Custard — Plea Agreement, Southern District of Texas (Document 29)

Summary

Plea Agreement filed September 17, 2024, as Document 29 in United States v. Cora Chantail Custard, Criminal No. 4:24-CR-099 (Case 4:24-cr-00099), U.S. District Court for the Southern District of Texas, Houston Division. The defendant agrees to plead guilty to Count One of the indictment, conspiracy to commit wire fraud under Title 18, United States Code, Section 371, which carries a maximum of 5 years of imprisonment and a $250,000 fine. The agreement sets out waivers of appeal and collateral review and the government's agreement to move to dismiss remaining counts. Its factual basis states that the defendant submitted false EIDL, FEMA and unemployment applications and gives approximate losses of $345,000, $75,000 and $200,000. It runs 14 pages.

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“United States v. Cora Chantail Custard — Plea Agreement, Southern District of Texas (Document 29).” Original at storage.courtlistener.com. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/plea-agreement-no-4-24-cr-00099-dkt-29-s-d-tex-a2e99ff868/, SHA-256 ae411d57dceec94188b91f15e6cf9e4e5e04f7d3d4d92d17bbcd2d23f92594d9.

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Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 1 of 14

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION

UNITED STATES OF AMERICA §
§
v. § CRIMINAL NO. 4:24-CR-099
§
CORA CHANTAIL CUSTARD, §
Defendant. §

PLEA AGREEMENT

The United States of America, by and through Alamdar S. Hamdani, United States

Attorney for the Southern District of Texas, and Karen M. Lansden, Assistant United States

Attorney, and the defendant, Cora Chantail Custard ("Defendant"), and Defendant's counsel,

pursuant to Rule ll(c)(l)(A) and ll(c)(l)(B) of the Federal Rules of Criminal Procedure, state

that they have entered into an agreement, the terms and conditions of which are as follows:

Defendant's Agreement

1. Defendant agrees to plead guilty to Count One of the indictment. Count One charges

Defendant with Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code,

Section 371. Defendant, by entering this plea, agrees that he/she is waiving any right to have the

facts that the law makes essential to the punishment either charged in the indictment, or proved to

a jury or proven beyond a reasonable doubt.

Punishment Range

2. The statutory maximum penalty for each violation of Title 18, United States Code,

Section 371, is imprisonment of not more than 5 years and a fine of not more than $250,000.

Additionally, Defendant may receive a term of supervised release after imprisonment of not more.

than 3 years. See Title 18, United States Code, Sections 3559(a)(4) and 3583(b)(2). Defendant

acknowledges and understands that if he/she should violate the conditions of any period of
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 2 of 14

supervised release which may be imposed as part of his/her sentence, then Defendant may be

imprisoned for not more than 2 years, without credit for time already served on the term of

supervised release prior to such violation. See Title 18, United States Code, Sections 3559(a)(4)

and 3583(e)(3). Defendant understands that the sentences on multiple counts may be imposed to

run consecutively to one another or to any other sentence. Defendant understands that he/she

cannot have the imposition or execution of the sentence suspended, nor is he/she eligible for parole.

Mandatory Special Assessment

3. Pursuant to Title 18, United States Code, Section 3013(a)(2)(A), immediately after

sentencing, Defendant will pay to the Clerk of the United States District Court a special assessment

in the amount of one hundred dollars ($100.00) per count of conviction. The payment will be by

cashier's check or money order, payable to the Clerk of the United States District Court, c/o District

Clerk's Office, P.O. Box 61010, Houston, Texas 77208, Attention: Finance.

Immigration Consequences

4. Defendant recognizes that pleading guilty may have consequences with respect to

his/her immigration status. Defendant understands that if he/she is not a citizen of the United

States, by pleading guilty he/she may be removed from the United States, denied citizenship, and

denied admission to the United States in the future. Defendant understands that if he/she is a

naturalized United States citizen, pleading guilty may result in immigration consequences, such as

denaturalization and potential deportation or removal from the United States. Defendant's attorney

has advised Defendant of the potential immigration consequences resulting from Defendant's plea

of guilty, and Defendant affirms that he/she wants to plead guilty regardless of any immigration

consequences that may result from the guilty plea and conviction.

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Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 3 of 14

Waiver of Appeal, Collateral Review, and Statute of Limitations

5. Defendant is aware that Title 28, United States Code, Section 1291, and Title 18,

United States Code, Section 3742, afford a defendant the right to appeal the conviction and

sentence imposed. Defendant is also aware that Title 28, United States Code, Section 2255, affords

the right to contest or "collaterally attack" a conviction or sentence after the judgment of conviction

and sentence has become final. Defendant knowingly and voluntarily waives the right to appeal or

"collaterally attack" the conviction and sentence, except that Defendant does not waive the right

to raise a claim of ineffective assistance of counsel on direct appeal, if otherwise permitted, or on

collateral review in a motion under Title 28, United States Code, Section 2255. In the event

Defendant files a notice of appeal following the imposition of the sentence or later collaterally

attacks his conviction or sentence, the United States will assert its rights under this agreement and

seek specific performance of these waivers.

6. Defendant also agrees that should the conviction following the defendant's plea of

guilty pursuant to this Agreement be vacated for any reason, then any prosecution that is not time-

barred by the applicable statute of limitations on the date of the signing of this agreement

(including any counts that the United States has agreed to dismiss at sentencing pursuant to this

Agreement) may be commenced or reinstated against the defendant, notwithstanding the

expiration of the statute of limitations between the signing of this Agreement and the

commencement or reinstatement of such prosecution. It is the intent of this Agreement to waive

all defenses based on the statute of limitations with respect to any prosecution that is not time-

barred on the date that this Agreement is signed.

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Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 4 of 14

7. In agreeing to these waivers, Defendant is aware that a sentence has not yet been

determined by the Court. Defendant is also aware that any estimate of the possible sentencing

range under the sentencing guidelines that he/she may have received from his/her counsel, the

United States or the Probation Office, is a prediction and not a promise, did not induce his/her

guilty plea, and is not binding on the United States, the Probation Office or the Court. The United

States does not make any promise or representation concerning what sentence the defendant will

receive. Defendant further understands and agrees that the United States Sentencing Guidelines

are "effectively advisory" to the Court. See United States v. Booker, 543 U.S. 220 (2005).

Accordingly, Defendant understands that, although the Court must consult the Sentencing

Guidelines and must take them into account when sentencing Defendant, the Court is not bound

to follow the Sentencing Guidelines nor sentence Defendant within the calculated guideline range.

8. Defendant understands and agrees that each and all waivers contained in the Agreement

are made in exchange for the concessions made by the United States in this plea agreement.

The United States' Agreements

9. The United States agrees to each of the following:

(a) If Defendant pleads guilty to Count One of the indictment and persists in
that plea through sentencing, and if the Court accepts this plea agreement, the
United States will move to dismiss any remaining counts of the indictment at the
time of sentencing. The defendant agrees that with respect to any and all dismissed
charges he/she is not a 'prevailing party within the meaning of the 'Hyde
Amendment,' Section 617, P.L. 105-119 (Nov. 26, 1997), and will not file any
claim under that law;

(b) If the Court determines that Defendant qualifies for an adjustment under
U.S.S.G. § 3El.l(a), and the offense level prior to operation of§ 3El.l(a) is 16 or
greater, the United States will move under§ 3El.l(b) for an additional one-level
reduction because Defendant timely notified authorities of his or her intent to plead
guilty, thereby permitting the United States to avoid preparing for trial and

4
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 5 of 14

permitting the United States and the Court to allocate their resources more
efficiently.

Agreement Binding - Southern District of Texas Only

10. The United States Attorney's Office for the Southern District of Texas agrees that it

will not further criminally prosecute Defendant in the Southern District of Texas for the specific

conduct described in the indictment/information. This plea agreement binds only the United States

Attorney's Office for the Southern District of Texas and Defendant. It does not bind any other

United States Attorney's Office. The United States Attorney's Office for the Southern District of

Texas will bring this plea agreement and the full extent of Defendant's cooperation to the attention

of other prosecuting offices, if requested.

United States' Non-Waiver of Appeal

11. The United States reserves the right to carry out its responsibilities under guidelines

sentencing. Specifically, the United States reserves the right:

(a) to bring the facts of this case, including evidence in the files of the United
States Attorney's Office for the Southern District of Texas or the files of any
investigative agency, to the attention of the Probation Office in connection with
that office's preparation of a presentence report;

(b) to set forth or dispute sentencing factors or facts material to sentencing;

(d) to file a pleading relating to these issues, in accordance with section 6A 1.2
of the United States Sentencing Guidelines and Title 18, United States Code,
Section 3553(a); and

(e) to appeal the sentence imposed or the manner in which it was determined.

5
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 6 of 14

Sentence Determination

12. Defendant is aware that the sentence will be imposed after consideration of the United

States Sentencing Guidelines and Policy Statements, which are only advisory, as well as the

provisions of Title 18, United States Code, Section 3553(a). Defendant nonetheless acknowledges

and agrees that the Court has authority to impose any sentence up to and including the statutory

maximum set for the offense(s) to which Defendant pleads guilty, and that the sentence to be

imposed is within the sole discretion of the sentencing judge after the Court has consulted the

applicable Sentencing Guidelines. Defendant understands and agrees that the parties' positions

regarding the application of the Sentencing Guidelines do not bind the Court and that the sentence

imposed is within the discretion of the sentencing judge. If the Court should impose any sentence

up to the maximum established by statute, or should the Court order any or all of the sentences

imposed to run consecutively, Defendant cannot, for that reason alone, withdraw a guilty plea, and

will remain bound to fulfill all of the obligations under this plea agreement.

Rights at Trial

13. Defendant understands that by entering into this agreement, he/she surrenders certain

rights as provided in this plea agreement. Defendant understands that the rights of a defendant

include the following:

(a) If Defendant persisted in a plea of not guilty to the charges, defendant would
have the right to a speedy jury trial with the assistance of counsel. The trial may
be conducted by a judge sitting without a jury if Defendant, the United States, and
the court all agree.

(b) At a trial, the United States would be required to present witnesses and other
evidence against Defendant. Defendant would have the opportunity to confront
those witnesses and his/her attorney would be allowed to cross-examine them. In
tum, Defendant could, but would not be required to, present witnesses and other
evidence on his/her own behalf. If the witnesses for Defendant would not appear

6
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 7 of 14

voluntarily, he/she could require their attendance through the subpoena power of
the court; and

(c) At a trial, Defendant could rely on a privilege against self-incrimination and
decline to testify, and no inference of guilt could be drawn from such refusal to
testify. However, if Defendant desired to do so, he/she could testify on his/her
own behalf.

Factual Basis for Guilty Plea

14. Defendant is pleading guilty because he/she is in fact guilty of the charges contained

in Count One of the indictment. If this case were to proceed to trial, the United States could prove

each element of the offense beyond a reasonable doubt. The following facts, among others would

be offered to establish Defendant's guilt:

Beginning on or about March 2020, Cora Chantail Custard ("CUSTARD"), executed a
scheme to fraudulently obtain Economic Injury Disaster Loan ("EIDL") funds, Federal Emergency
Management Agency ("FEMA") funds, and Unemployment Insurance ("UI") funds (collectively,
"relief funds"), both personally and on behalf of other individuals. CUSTARD promoted the
scheme to fraudulently obtain relief funds for other individuals by advertising her services on
social media posts in which she stated that she could get individuals money by assisting with
income taxes and pandemic benefits.

CUSTARD, using false information, submitted and caused to be submitted false and
fraudulent loan applications to the United States Small Business Administration ("SBA"),
fraudulent Disaster Benefit Applications ("DBAs") to FEMA, and fraudulent unemployment
applications to multiple state UI agencies on behalf of herself and other individuals in an attempt
to obtain relief funds. As a result of the fraudulent applications, CUSTARD caused an approximate
loss to the United States Government in the amount of $345,000 in fraudulent EIDL advances,
$75,000 in fraudulent FEMA assistance, and $200,000 in fraudulent UI claims.

In October 2020, DHS OIG initiated an investigation into CUSTARD after receiving a
complaint on the FEMA Tip Line that "Barbie Custard" assisted non-qualifying individuals in
applying for FEMA funds after Hurricane Sally. The complaint alleged that "Barbie Custard" was
advertising her services on Facebook.

A review of CUSTARD's Facebook account, www.facebook.com/barbie.finess.5,
identified posts in the fall of 2020 that repeatedly described the scheme to her social media
followers as "doing apps." She posted numerous times advertising her ability to obtain between
$6k and $8k for an application within four to seven days of its filing.

7
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 8 of 14

Many of the posts received comments from individuals expressing an interest in filing
applications through CUSTARD. CUSTARD replied to individuals with "inbox" directing
followers to privately contact her through direct messages on Facebook Messenger.

On October 27, 2020, US Magistrate Christina Bryan approved a search warrant for the
contents of CUSTARD's Facebook account for the time period of January to October 2020.
Response to the search warrant was provided to law enforcement on December 18, 2020. A review
of the account identified Facebook Messenger threads between CUSTARD and others related to
the filing of fraudulent EIDL applications, FEMA Disaster Benefit Applications, and Pandemic
Unemployment Assistance applications.

On March 4, 2021, law enforcement executed a residential SW on CUSTARD's residence
at 24515 Kestrel View, Katy, Texas. Agents seized digital devices and numerous documents and
identification documents believed to be used by CUSTARD in furtherance of various fraud
schemes. Multiple UI debit cards were found on scene.

CUSTARD was on scene and provided a Miranda form by agents. CUSTARD
acknowledged her rights and waived them using the form. During the course of the interview,
CUSTARD acknowledged she had filed FEMA, EIDL, and PUA applications on behalf of herself
and others. CUSTARD admitted to her role in the conspiracy and acknowledged she received no
income in 2020 from legitimate or "W-2" sources. CUSTARD acknowledged she received $3k for
every $10k EIDL advance grant paid out to an individual whom she filed for. CUSTARD
acknowledged the details of each transaction would be contained on her digital devices seized
during the search.

Evidence obtained from CUSTARD's Facebook account SW return and digital devices
obtained during the residence SW detail CUSTARD's schemes. Law enforcement conducted
several interviews with subjects found in CUSTARD's messages who obtained fraudulent relief
funds. Those individuals confirmed they fraudulently received FEMA, EIDL, and PUA funds with
the assistance of CUSTARD and after receiving the funds they paid a portion of the funds to
CUSTARD.

CUSTARD submitted or caused to be submitted over 100 fraudulent EIDL applications.
At least 36 of those fraudulent EIDL applications resulted in EIDL advance payments totaling
$345,000. CUSTARD submitted or caused to be submitted at least 30 fraudulent FEMA Disaster
Benefit Applications. At least 16 of those fraudulent FEMA Disaster Benefit Applications resulted
in FEMA payouts totaling approximately $75,000. CUSTARD submitted or caused to be
submitted over 100 fraudulent UI applications. At least 20 of those fraudulent UI applications
resulted in UI payments totaling $203,236.

Defendant stipulates and admits that the information set forth in this factual basis is legally
sufficient as it pertains to him and to support his plea of guilty to Count One of the indictment.

8
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 9 of 14

Breach of Plea Agreement

15. If Defendant should fail in any way to fulfill completely all of the obligations under

this plea agreement, the United States will be released from its obligations under the plea

agreement, and Defendant's plea and sentence will stand. If at any time Defendant retains,

conceals, or disposes of assets in violation of this plea agreement, including required financial

information, or if Defendant knowingly withholds evidence or is otherwise not completely truthful

with the United States, then the United States may move the Court to set aside the guilty plea and

reinstate prosecution. Any information and documents that have been disclosed by Defendant,

whether prior to or subsequent to this plea agreement, and all leads derived therefrom, will be used

against defendant in any prosecution.

Monetary Penalties, Assets and Financial Disclosures

16. Defendant understands and agrees that monetary penalties will be subject to

immediate enforcement as provided in 18 U.S.C. § 3613 and that monetary penalties will be

submitted to the Treasury Offset Program so that payments to the Defendant may be applied to

federal debts.

17. Defendant understands that restitution, forfeiture, and fines are separate components

of sentencing and are separate obligations. Defendant agrees to take all steps necessary to pass

clear title to forfeitable assets to the United States and to assist fully in the collection of restitution

and fines. Subject to the provisions of paragraph 7 above, Defendant waives the right to challenge

in any manner, including by direct appeal or in a collateral proceeding, any restitution order, any

forfeiture orders, and any fines.

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Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 10 of 14

Restitution

18. Defendant agrees to pay full restitution to the victim(s) regardless of the count(s) of

conviction. Defendant stipulates and agrees that as a result of his criminal conduct, the victim(s)

incurred a monetary loss of at least $ 620,000. Defendant agrees to pay full restitution as

determined by the Court, regardless of the resulting loss amount, to all victims harmed by

Defendant's "relevant conduct," as defined by U.S.S.G. §lBl.3, including conduct pertaining to

any dismissed counts or uncharged conduct, and regardless of whether such conduct constitutes

an "offense" under 18 U.S.C. §§ 2259, 3663 or 3663A. Defendant agrees that restitution imposed

by the Court will be due and payable immediately and that should the Court impose a payment

schedule, the payment schedule sets forth minimum payments and does not foreclose additional

collection of restitution.

Forfeiture

19. As part of this plea agreement, Defendant agrees to the following:

(a) to forfeit, via either an administrative or judicial proceeding, all assets listed in the
charging document (including any Supplemental Notice of Forfeiture), and to forfeit or
abandon any assets seized during this investigation or a related investigation [including but
not limited to the following specific assets:];

(b) to withdraw any claims and petitions for such listed or seized assets, whether in this
proceeding or another proceeding, and to waive notice of administrative proceedings
(including forfeiture, destruction, and abandonment for seized property);

(c) that Defendant obtained money from the criminal offenses, that the factual basis for the
guilty plea supports the imposition of a money judgment in that amount, and that the
Defendant agrees to the imposition of a money judgment in that amount [or, if not agreed,
that the Court will determine the proper amount of a money judgment];

(d) that one or more of the conditions set forth in 21 U.S.C. § 853(p) exists, so that the
forfeiture money judgment may be immediately satisfied via forfeiture of substitute
property; and

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Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 11 of 14

(e) to the order of forfeiture becoming final as to Defendant immediately following this
guilty plea or immediately following entry of the forfeiture order, whichever applies.

Financial Statement

20. Defendant agrees to truthfully complete under penalty of perjury, within thirty days

of the execution of this Plea Agreement, a financial statement on a form provided by the United

States Attorney's Office and to update the statement within seven days of any material change.

Defendant also agrees to make full disclosure to the United States Probation Office of all current

and anticipated assets in which Defendant has an interest both before sentencing and again before

termination of supervised release or probation, with such disclosures to be shared with the United

States Attorney's Office.

21. Defendant further agrees not to dispose or transfer any assets without the prior written

permission of the United States and to authorize the release of all financial information requested

by the United States, including, but not limited to, credit histories and tax returns. Defendant agrees

to discuss and answer any questions by the United States relating to Defendant's financial

disclosure, including in a deposition or informal debtor exam, whether before or after sentencing.

Complete Agreement

22. This written plea agreement, consisting of 14 pages, including the attached addendum

of Defendant and his/her attorney, constitutes the complete plea agreement between the United

States, Defendant, and Defendant's counsel. Other than any written proffer agreement(s) that may

have been entered into between the United States and Defendant, this agreement supersedes any

prior understandings, promises, agreements, or conditions between the United States and

Defendant. No additional understandings, promises, agreements, or conditions have been entered

into other than those set forth in this agreement, and none will be entered into unless in writing

11
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 12 of 14

and signed by all parties. Defendant acknowledges that no threats have been made against him/her

and that he/she is pleading guilty freely and voluntarily because he/she is guilty.

23. Any modification of this plea agreement must be in writing and signed by all parties.

Filed at ~ovs to h

Subscribed and sworn to before me on _ __,,,S~t-P.....ac..-.L-';11=8-t'IL...__---4-/+r---- , 2024.

NATHAN KYLE OCHSNER
UNITED STATES DISTRICT CLERK

By:
Deputy

APPROVED: -

Alamdar S. Hamdani
United States Attorney

By:
K~
,... ,---

~ - ~{Yl
Natalie Awad
Assistant United States Attorney Attorney for Defendant
Southern District of Texas

12
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 13 of 14

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION

UNITED STATES OF AMERICA §
§
v. § CRIMINAL NO. 4:24-CR-099
§
CORA CHANTAIL CUSTARD, §
Defendant. §

PLEA AGREEMENT -- ADDENDUM

I have fully explained to Defendant his/her rights with respect to the pending

indictment/information. I have reviewed the provisions of the United States Sentencing

Commission's Guidelines Manual and Policy Statements and I have fully and carefully explained

to Defendant the provisions of those Guidelines which may apply in this case. I have also explained

to Defendant that the Sentencing Guidelines are only advisory and the court may sentence

Defendant up to the maximum allowed by statute per count of conviction. I have also explained to

Defendant that sentences on multiple counts may be imposed to run consecutively to one another

or to any other sentence. Further, I have carefully reviewed every part of this plea agreement with

Defendant. To my knowledge, Defendant's decision to enter into this agreement is an informed

and volun,?e.

/Gk-OJ
Attorney for Defendant Date
9)/7 )24

13
Case 4:24-cr-00099 Document 29 Filed on 09/17/24 in TXSD Page 14 of 14

I have consulted with my attorney and fully understand all my rights with respect to the

indictment/information pending against me. My attorney has fully explained, and I understand, all

my rights with respect to the provisions of the United States Sentencing Commission's Guidelines

Manual which may apply in my case. I have read and carefully reviewed every part of this plea

agreement with my attorney. I understand this agreement and I voluntarily agree to its terms.

~~
Defendant DateT 7

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