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Lacombe woman sentenced in Katrina fraud case

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Posted: Sep 24, 2010 6:40 AM by Andrea Fontenot
Source: Associated Press

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Topics: Lacombe, sentenced, prison, theft, funds, SBA, loan, Road Home, Hurricane Katrina

A Lacombe woman has been sentenced to a year and a day in prison for two felony counts of theft of government funds she obtained after Hurricane Katrina.

According to court documents, in 2005 Denise Stobaugh and her husband applied for a loan from the SBA based on damage purportedly done by the hurricane to their home.

The SBA granted the defendants a $38,800 loan.

In 2006, Denise Stobaugh applied for Road Home money and received $150,000.

Prosecutors say the Stobaugh home received only minimal damage from Katrina.

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