Multiple individuals sentenced in Virginia for defrauding pandemic unemployment program

Abingdon, Virginia – A federal investigation into fraudulent pandemic unemployment claims has resulted in the sentencing of five additional individuals this week in U.S. District Court in Abingdon. The scheme, which involved fraudulent filings through the Virginia Employment Commission (VEC), resulted in the theft of over $341,000 in relief funds meant for eligible recipients.

More Sentences Handed Down

On Thursday, several individuals received federal prison sentences for their involvement in the conspiracy. Christopher Kirk Webb, 40, of Raven, was sentenced to 20 months, while Russell Eric Stiltner, 42, of Abingdon, received 24 months. Jessica Dawn Lester, 35, of North Tazewell, and Cara Camille Bailey, 38, of Davenport, were each sentenced to 19 months, and Justin Warren Meadows, 39, of Oakland was sentenced to 18 months. Along with their prison terms, all defendants have been ordered to pay restitution to the VEC in the amounts corresponding to their fraudulent claims.

Earlier Sentences in the Case

These latest sentences follow the prosecution of several others involved in the scheme. Jonathan Webb, identified as the primary recruiter who encouraged others—primarily jail inmates—to participate, was sentenced to 48 months and ordered to pay $150,218 in restitution.

Other individuals who have already faced sentencing include:

• Terrence Brooks Vilacha, sentenced to 18 months in prison and ordered to repay $14,894.
• Joseph Hass, sentenced to 27 months in prison with restitution set at $19,316.
• Brian Addair, sentenced to 24 months and ordered to repay $22,284.
• Stephanie Amber Barton and Hayleigh McKenzie Wolfe, each sentenced to 12 months and one day.

How the Fraud Took Place

According to court records, the scheme operated between March 2020 and September 2021. Defendants Josef Brown, Jonathan Webb, and Crystal Shaw collected personal identification information (PII) from inmates at the Southwest Virginia Regional Jail Authority facility in Haysi, as well as from their personal acquaintances. Using this information, they submitted fraudulent claims and recertifications for pandemic unemployment benefits through the Virginia Employment Commission website.

Many of the individuals whose information was used were ineligible for the benefits, but the fraudulent applications still led to the approval and disbursement of relief funds. By the time the scheme was uncovered, the group had illegally obtained more than $341,000 in federal pandemic assistance funds.

A Costly Crime with Lasting Consequences

The sentencing of these defendants marks a significant step in holding individuals accountable for pandemic-related fraud. With more individuals already convicted and sentenced, authorities continue their efforts to recover stolen funds and prosecute those who exploited relief programs during a time of crisis.