Woman might lose home after falling victim to government grant scam

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ARAPAHOE COUNTY, Colo. -- Kathryn Potter hoped a deal that looked too good to be true was the answer to her prayers.

It turns out Potter is on the verge of losing her home in eastern Arapahoe County after giving nearly $4,000 to scammers.

She tells the FOX31 Problem Solvers that she wired the money in increments to a man who sent her a text offering $50,000 in government grant money if she sent him $1,000 first.

The amount he demanded grew and Potter ended up taking out a loan to satisfy a deal she hoped would save her from spiraling debt.

The man, who calls himself Agent John, never showed up with any money but provided a series of wild explanations.

"[He said] two agents were killed in the wreck, he was hurt, the truck caught on fire and the fire department was hanging on to the check and needed another $400 to release the check," Potter said.

When Potter started explaining that she had no money, “Agent John” became aggressive, sending more demanding text messages.

Potter's wire transfer receipts show one named Alex David Johnson in Texas. She filed a report with authorities.

The man did not respond to text messages and phone calls from the Problem Solvers.

The Better Business Bureau warns that the government never demands money for grants and anytime someone wants you to send money in order to get money, it is a huge red flag that it’s a scam.

A GoFundMe page has been set up to help Potter stay in her home.