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Putnam County man pleads guilty to unemployment fraud

LEGAL NEWSLINE

Friday, April 25, 2025

Putnam County man pleads guilty to unemployment fraud

Attorneys & Judges
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Lisa G. Johnston Acting United States Attorney for the Southern District of West Virginia | U.S. Attorney for the Southern District of West Virginia

James Lomax, a resident of Hurricane, pleaded guilty in Charleston, West Virginia, to theft of public money, property, or records. Lomax acknowledged fraudulently obtaining $13,312 in unemployment benefits, including COVID-19 funds.

Court documents reveal that Lomax applied for unemployment compensation on March 24, 2020, after being laid off from his job as a sales manager at a St. Albans auto dealership due to the pandemic. He received legitimate benefits until April 25, 2020, when he resumed work.

However, Lomax admitted that he continued to apply for unemployment benefits until at least July 18, 2020, despite having returned to work. His fraudulent activities allowed him to claim $13,312, supplemented by the Federal Pandemic Unemployment Compensation Program under the CARES Act.

WorkForce West Virginia oversees the state's unemployment compensation program. Lomax confessed to falsely certifying his eligibility on their website for 13 weeks, using his device from St. Albans.

The unlawfully obtained funds were used for personal expenses. Lomax's sentencing is scheduled for August 7, 2025, where he could face up to 10 years in prison, three years of supervised release, and a $250,000 fine, along with $13,312 in restitution.

Lomax's co-workers, his father, Gary Lomax, and Christopher Grant, pleaded guilty to similar charges. Both were sentenced to five years of federal probation with a four-month home detention and restitution payments of $29,592 and $35,168, respectively.

Acting United States Attorney Lisa G. Johnston acknowledged the investigatory efforts of several agencies, including the WorkForce West Virginia Integrity Section and NASA's Office of Inspector General. This case was advanced by the Pandemic Response Accountability Committee's Fraud Task Force and its Analytics Center of Excellence.

U.S. District Judge Irene C. Berger presided over Lomax's hearing. Assistant U.S. Attorneys J. Parker Bazzle II and J. Tessman prosecute the case.

The public is encouraged to report any COVID-19-related fraud to the Department of Justice’s National Center for Disaster Fraud Hotline or the NCDF Web Complaint Form.

Related documents are accessible via PACER by referring to Case No. 2:25-cr-57.

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