Press Release
Two More Sentenced in Federal Pandemic Fraud Unemployment Benefit Scheme
For Immediate Release
U.S. Attorney's Office, Western District of Virginia
17 Defendants Stole $341,205 Combined in Pandemic Relief Money
ABINGDON, Va. – Two more 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 filing fraudulent claims for pandemic unemployment benefits, were sentenced last week in U.S. District Court in Abingdon.
Last week, Clinton Michael Altizer and Jeramy Blake Farmer were each sentenced to 12 months and 1 day for their roles in the conspiracy.
Previously sentenced as part of the conspiracy were: Christopher Webb, 20 months; Russell Stiltner, 24 months; Jessica Lester, 19 months; Cara Camille Bailey, 19 months; Justin Meadows, 18 months; Terrence Vilacha, 18 months; Joseph Hass, 27 months; Brian Addair, 24 months; and Stephanie Amber Barton and Hayleigh McKenzie Wolfe were each sentenced to 12 months and 1 day.
Jonathan Webb, the individual charged with recruiting others to file fraudulent claims, mostly inmates at local jails, was sentenced to 48 months was ordered to pay $150,218 in restitution.
All defendants were also ordered to pay restitution to the Virginia Employment Commission for the amount of their individual fraudulent claims.
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 and Abingdon, 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 were charged with identifying 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. According to the United States Department of Labor, Virginia paid approximately $1.1 billion in fraudulent unemployment claims between April 1, 2020, and March 31, 2021.
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.
Updated April 7, 2025
Topics
Coronavirus
Disaster Fraud
Component