Three Virginia defendants sentenced for stealing more than $650,000 through pandemic unemployment fraud scheme

Abingdon, Virginia – Three individuals involved in a large fraud scheme that targeted pandemic unemployment benefits have been sentenced in federal court after authorities determined they stole more than $650,000 from Virginia taxpayers. The case, which was handled in U.S. District Court in Abingdon, exposed a conspiracy that relied on stolen personal information and false claims to obtain government benefits intended for people affected by the COVID-19 pandemic.

Federal prosecutors announced that Jonathan Ricketts, Christopher Woliver, and Megan Caudill were sentenced for their roles in the scheme, which involved filing fraudulent unemployment claims using the personally identifying information of inmates and other individuals who were not eligible for the payments.

Jonathan Ricketts, 45, of Duffield, Virginia, received the longest sentence in the case. He was ordered to serve 84 months in federal prison after previously pleading guilty to one count of conspiracy to defraud the United States and one count of making false statements related to emergency benefits. The court also ordered him to pay $669,124 in restitution jointly and severally with Farren Ricketts.

Christopher Woliver, 37, of Big Stone Gap, Virginia, was sentenced to 24 months in federal prison. Like Ricketts, Woliver pleaded guilty to conspiracy to defraud the United States and making false statements connected to emergency benefits. He was ordered to pay $29,076 in restitution jointly and severally with Farren Ricketts and Jonathan Ricketts.

Megan Caudill, 39, of Swords Creek, Virginia, received a sentence of 30 days in prison along with three years of supervised release. As part of her supervision, she must serve 12 months on home confinement. Caudill also pleaded guilty to conspiracy and making false statements tied to emergency benefits. She was ordered to pay $166,204 in restitution jointly and severally with the Ricketts defendants.

Acting United States Attorney Robert N. Tracci praised the investigators who helped uncover the fraud. “I applaud our partners at the IRS, Department of Labor, and the Russell County Sheriff’s Office for their outstanding work on this case. Fraudsters who line their pockets at the expense of taxpayers will face accountability for their crimes,” Acting United States Attorney Robert N. Tracci said today.

Fraud Scheme Exploited Pandemic Relief Program

The scheme occurred during the COVID-19 pandemic, when the federal government created the Pandemic Unemployment Assistance program to help individuals who lost work due to the health crisis. The program expanded unemployment eligibility to workers who normally would not qualify for traditional unemployment benefits or who had already exhausted their regular benefits.

To qualify for the assistance, applicants were required to certify that they were unemployed or had reduced work hours due to the pandemic and to file weekly claims confirming their status.

However, the program also became a major target for fraud. Authorities reported that Virginia paid $1.1 billion in fraudulent unemployment claims between April 1, 2020, and March 31, 2021.

According to court documents, the defendants in this case played a central role in contributing to that fraud.

Investigators said Jonathan Ricketts and his wife, Farren Ricketts, operated a business called Ricketts Advisory LLC. The company employed several individuals whose primary purpose was to submit fraudulent unemployment claims during the pandemic.

While Jonathan Ricketts was incarcerated at Duffield Regional Jail, he gathered personally identifying information from inmates and obtained their signatures. He then mailed the information to Farren Ricketts, who used it to file fraudulent unemployment benefit claims.

Authorities determined that the business was responsible for filing at least 101 false claims using stolen personal information.

Caudill worked as an employee of Ricketts Advisory and participated in the scheme. Investigators found that she personally received $21,368 in fraudulent unemployment benefits. In addition, she helped at least eleven other individuals file false claims that resulted in $166,204 in payments.

Woliver, another employee involved in the scheme, also received money through fraudulent claims. Authorities said he collected approximately $3,270 in pandemic unemployment benefits that he was not entitled to receive. He also recruited others to participate, which led to an additional $25,806 in fraudulent claims being paid out.

Multi-Agency Investigation

The investigation involved several law enforcement agencies working together to uncover the fraud network. Agencies assisting in the case included the Department of Labor Office of the Inspector General, the Internal Revenue Service Criminal Investigation division, the Russell County Sheriff’s Office, and the Norton Police Department in Wise County.

The case was prosecuted by Assistant United States Attorney Danielle Stone.

Officials said the investigation was also connected to a broader national effort to track pandemic-related fraud. As part of the Pandemic Response Accountability Committee Task Force, investigators from the Special Inspector General for Pandemic Recovery helped identify cases involving fraud, waste, and abuse tied to the massive federal spending during the pandemic.

The committee’s network of inspectors general oversees programs connected to more than $5 trillion in federal COVID-19 relief funding.

Federal officials say cases like this demonstrate the importance of continued enforcement efforts aimed at holding individuals accountable when government relief programs are exploited for personal gain.