Six individuals involved in a scheme to defraud the United States through pandemic unemployment benefits have been sentenced in U.S. District Court in Abingdon, Virginia. This sentencing follows charges of conspiracy to commit program fraud and mail fraud.
Stephanie Amber Barton, 31, and Hayleigh McKenzie Wolfe, 30, both from Cedar Bluff, Virginia, were sentenced to 12 months and one day in federal prison. Barton pleaded guilty to conspiring to defraud the United States and must pay $28,964 in restitution to the Virginia Employment Commission. Wolfe admitted to making materially false statements on a claim for emergency assistance benefits and was ordered to pay $13,978.
Jonathan Webb received a 48-month sentence for his role as a recruiter of others, mainly inmates at local jails, to file fraudulent claims. He was also ordered to pay $150,218 in restitution. Terrence Brooks Vilacha received an 18-month sentence with a restitution order of $14,894. Joseph Hass was sentenced to 27 months with $19,316 restitution due. Brian Addair received a 24-month sentence and must pay $22,284.
Other defendants charged but awaiting sentencing include Josef Ludwig Brown, Crystal Samantha Shaw, Christopher Kirk Webb, Cara Camille Bailey, Jessica Dawn Lester, Russell Eric Stiltner, Daneil Wayne Horton, Justin Warren Meadows, Jeramy Blake Farmer, and Clinton Michael Altizer. One defendant is set for trial in May 2025.
Court documents reveal that between March 2020 and September 2021, Josef Brown collaborated with Jonathan Webb and Crystal Shaw on this scheme by filing fraudulent claims via the Virginia Employment Commission website using personal identification information from inmates at SWVRJA-Haysi along with personal acquaintances who were not eligible for benefits.
The defendants unlawfully obtained $341,205 intended for pandemic relief.
This investigation was part of the Pandemic Response Accountability Committee (PRAC) Task Force led by the Special Inspector General for Pandemic Recovery. The PRAC's goal is identifying risks across programs involving over $5 trillion spent on COVID-19 measures.
The sentences were announced by Acting United States Attorney Zachary T. Lee; Stanley M. Meador from the FBI’s Richmond Division; and Virginia Attorney General Jason Miyares.
Assisting agencies included Dickenson County Sheriff’s Office; Southwest Virginia Regional Jail Authority; FBI; U.S. Department of Labor; and Virginia Employment Commission.
Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen along with Assistant United States Attorney Danielle Stone are prosecuting this case for the government.