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National Insurance Crime Bureau

Denham Springs Woman Sentenced to 15 Months in Federal Prison for Conspiracy to Commit Disaster Fraud

U.S. Attorney’s Office – Middle District of Louisiana, December 7, 2020

United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced Casondra Reagan, age 44, of Denham Springs, to 15 months in federal prison following her conviction for conspiracy to commit fraud connected to major disaster declaration emergency benefits.  The Court further sentenced Reagan to serve three years of supervised release following her term of imprisonment and pay restitution in the amount of $50,000.

Following the 2016 flooding that affected 12 parishes in south Louisiana, the Small Business Administration (SBA) made low interest loans available to people who had sustained damage to their residences as a result of the flood.  The loans came with caveat that the funds must be used to repair or replace property damaged by the flood.

According to admissions made as part of her guilty plea, Reagan and another agreed to apply for an SBA loan for their residence damaged by the 2016 flood and planned to use the loan to pay off other loans they already had.  At no point did they intend to use the SBA loan to repair or replace things damaged by the flood.

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