Louisiana Woman Convicted and Faces Up to 10 Years for Fraudulently Obtaining Funds from FEMA

A Louisiana woman has been convicted and faces up to ten years in prison for fraudulently obtaining funds from FEMA.

Louisiana – On Wednesday, February 15, 2023, United States Attorney Brandon B. Brown announced that Karen Hawkins Gier, 53, of Morgan City, Louisiana, was convicted on the afternoon of February 14, 2023, by a federal jury of conspiracy to commit wire fraud. United States District Judge James D. Cain, Jr. presided over the trial this week.

In a November 2021 indictment, Gier was charged with conspiracy to commit wire fraud in relation to her fraudulent application for disaster payments from the Federal Emergency Management Agency (FEMA), an agency of the United States Department of Homeland Security.

South Louisiana was severely hit by flooding in August 2016, and a Presidential disaster designation was issued under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act on August 14, 2016.
The incident period spanned from August 11 through August 31, 2016. FEMA was permitted to assist with the repair or replacement of a damaged primary vehicle.

Gier, in cooperation with others, made fraudulent claims and representations to FEMA in applications for transportation benefits and submitted bogus invoices from nonexistent mechanic shops between August 11, 2016, and March 30, 2017. Gier lied to FEMA that the vehicles were flooded when they were not, and that the vehicles were located in a disaster zone when they were not.   Gier also submitted to FEMA applications containing fictitious invoices from a mechanic’s business containing totally fabricated repair estimates created by her and other accomplices. FEMA paid out benefits for these supposed damages to the claimants, who would then pay Gier a share of this cash as a reward for submitting their bogus applications.

Gier faces up to ten years in prison, three years of supervised release, and a maximum fine of $250,000. Gier’s sentencing is planned on June 29, 2023.

Justin Maurice Hawkins, a co-defendant in this case, pled guilty to a Bill of Information charging him with one count of theft of government monies. Hawkins’ sentencing is slated for May 4, 2023.

The case was investigated by the Department of Homeland Security’s Office of Inspector General and prosecuted by Assistant United States Attorneys Lauren L. Gardner and J. Luke Walker.