In 5 days, man scams Red Cross out of $46K meant for Texas hurricane victims, feds say
In five days, Muata Khalif stole tens of thousands of dollars in disaster relief funds meant to help Texas victims of Hurricane Harvey, authorities say.
One day into the October 2017 scheme, the Virginia man met, befriended and recruited a Walmart Money Center cashier to help him scam the American Red Cross. Together, they’re accused of defrauding the nonprofit organization out of over $46,000.
Nearly five years later, Khalif pleaded guilty to his part in the scheme, according to an Aug. 22 news release from the U.S. Attorney’s Office for the Eastern District of Virginia. The 55-year-old, formerly of Emporia, now lives in Richardson, Texas.
His defense attorney did not immediately respond to a request for comment from McClatchy News on Aug. 23.
The payments
About two months after Hurricane Harvey hit Texas and Louisiana, the Red Cross launched a program providing one-time $400 payments to Texas residents affected by the natural disaster. The payments were made available by public donations, according to court records.
To qualify, applicants were to register online with an email and password before getting a Red Cross Client ID number. Once they had their ID number, residents had to provide personal information, including their date of birth, address and phone number.
Once approved, applicants got a reference number and then could choose how to get their $400 payment, including by picking up cash at any Walmart Money Center. They’d need to provide their Red Cross Client ID number and reference number to get their money.
The scheme
Authorities say Khalif created email accounts and used Texas residents’ personal information to apply for Red Cross disaster relief payments in their own names.
He then obtained at least 116 unique client ID and reference numbers, according to the news release.
“Armed with this information, and over the course of a five-day span, Khalif traveled to (Walmart) stores located in Emporia, Colonial Heights, Petersburg, and Midlothian to obtain the Red Cross relief payments intended for those individuals,” officials say.
With the help of a Petersburg Walmart Money Center cashier, they obtained 116 Red Cross disaster relief payments worth $400 each — a total of $46,400.
The guilty plea
Khalif pleaded guilty to conspiracy to commit wire fraud on Aug. 19, according to court records.
His sentencing date is scheduled for Nov. 17, when officials say he will face up to 20 years in federal prison. Sentences are usually less than the maximum penalty allowed by law.
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