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Nouel Alba, 37, was arrested after FBI accused her of using Facebook, phone calls and text messages to solicit donations to a "funeral fund".
BBC: NY woman in Newtown 'charity scam'
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The court heard Ms Spence also borrowed money from murder accused Colin Coat's parents' funeral fund and she had not paid her workers any wages.
BBC: Lynda Spence
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According to the FBI complaint, Ms Alba posted on Facebook that "we've set up a funeral fund for my brother and families - anyone willing to make a donation can make one", before giving instructions on how to donate to a Paypal account or by direct deposit.
BBC: NY woman in Newtown 'charity scam'
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The government currently provides funeral payments from the Social Fund to those in poverty.
BBC: Viewpoint: Should organ donors get free funerals?
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Under the approved fund, families of those killed will be given 250, 000 baht for funeral expenses and an additional 3 million baht for ''psychological trauma caused'', Thai local media reported.
BBC: Thailand compensation for protest victims approved