February 11, 2025 - Six Sentenced in Federal Fraud Pandemic Unemployment Benefit Scheme

Six Sentenced in Federal Fraud Pandemic Unemployment Benefit Scheme

In all, 17 Defendants Stole $341,205 in Pandemic Relief Money

ABINGDON, Va. – Six 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 recently in U.S. District Court in Abingdon.

Stephanie Amber Barton, 31, and Hayleigh McKenzie Wolfe, 30, both of Cedar Bluff, Virginia, were each sentenced yesterday to serve 12 months and 1 day in federal prison. Barton previously pled guilty to conspiring to defraud the United States and was ordered to pay $28,964 in restitution to the Virginia Employment Commission.

Wolfe previously pled guilty to knowingly making materially false and fraudulent statements and representations on a claim for emergency assistance benefits and was ordered to pay $13,978 in restitution.

Last month, four other defendants were 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.

Also charged and awaiting sentencing are Josef Ludwig Brown, Crystal Samantha Shaw, Christopher Kirk Webb, Cara Camille Bailey, Jessica Dawn Lester, Russell Eric Stiltner, Daneil Wayne Horton, Justin Warren Meadows, Jeramy Blake Farmer, and Clinton Michael Altizer, all charged with conspiring to defraud the United States, fraud in connection with emergency benefits, and conspiring to commit mail fraud. One defendant is scheduled for trial in May 2025.

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.

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.

Click here for the U.S. Attorney's Office, Western District of Virginia's press release. 

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