Five More Sentenced in Federal Pandemic Fraud Unemployment Benefit Scheme

ABINGDON, Va. – An additional five of the 17 defendants charged with conspiring to defraud the United States, commit program fraud, and commit mail fraud in connection to a scheme involving the filing of fraudulent claims for pandemic unemployment benefits, were sentenced this week in U.S. District Court in Abingdon.

On Thursday, Christopher Kirk Webb, 40, of Raven, Virginia was sentenced to 20 months in federal prison. Russell Eric Stiltner, 42, of Abingdon, Virginia, was sentenced to 24 months. Jessica Dawn Lester, 35, of North Tazewell, Virginia, and Cara Camille Bailey, 38, of Davenport, Virginia, were both sentenced to 19 months, and Justin Warren Meadows, 39, of Oakland, Virginia, was sentenced to 18 months. All defendants were also ordered to pay restitution to the Virginia Employment Commission for the amount of their individual fraudulent claims. 

Six Defendants were previously sentenced for their roles in the scheme.

Jonathan Webb, the individual charged with ‘recruiting’ others to file fraudulent claims, mostly inmates at local jails, was sentenced to 48 months in federal prison and was ordered to pay $150,218 in restitution.

Terrence Brooks Vilacha was sentenced to 18 months in prison and was ordered to pay $14,894 in restitution. Joseph Hass was sentenced to 27 months’ incarceration and was ordered to pay $19,316 in restitution. Brian Addair was sentenced to 24 months in prison and was ordered to pay $22,284.

Stephanie Amber Barton and Hayleigh McKenzie Wolfe were each sentenced to 12 months and 1 day.

According to court documents, between March 2020 and September 2021, Josef Brown, Jonathan Webb, and Crystal Shaw developed a scheme to file fraudulent claims and recertifications for pandemic unemployment befits via the Virginia Employment Commission website. The scheme involved the collection of personal identification information (PII) of inmates housed at SWVRJA-Haysi, as well as personal friends and acquaintances of Brown, Webb, and Shaw. The conspirators used that information to file fraudulent claims and recertifications for pandemic unemployment benefits for incarcerated individuals and others who were ineligible for the benefits.

In all, the defendants stole $341,205 in pandemic relief to which they were not entitled.

As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the Special Inspector General for Pandemic Recovery. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.

Acting United States Attorney Zachary T. Lee, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, and Virginia Attorney General Jason Miyares announced the sentences.

Agencies that assisted with this investigation included the Dickenson County Sheriff’s Office, the Southwest Virginia Regional Jail Authority, the FBI, U.S. Department of Labor, and the Virginia Employment Commission.

Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Danielle Stone are prosecuting the case for the United States.