Three Iowa men are facing federal charges for allegedly stealing pandemic relief funds meant for desperate workers. Alvin Lavon Rex, 61, of Schaller; Jerry Johnson, 54, of Webster City; and Brian Whorton, 54, of Marion, each accused of exploiting the COVID-19 unemployment system, now stare down up to 20 years behind bars.
Federal complaints and an indictment filed in the Northern District of Iowa lay out the fraud. Rex and Johnson are charged with mail fraud, while Whorton faces wire fraud charges. Prosecutors allege all three filed false claims for unemployment benefits tied to the CARES Act, accessing funds they were never entitled to during one of the nation’s most vulnerable economic periods.
The relief program, signed into law by the President on March 27, 2020, was designed to aid Americans crushed by pandemic-related job losses. Instead, authorities say, these men turned it into a personal cash pipeline. Each faces a maximum penalty of 20 years in prison, a $250,000 fine, and three years of supervised release if convicted.
All three defendants have already appeared in federal court in Cedar Rapids and Sioux City. Despite the severity of the charges, each was released without bond. The Justice Department reminds the public that charges are not convictions—each man is presumed innocent until proven guilty in a court of law.
The sprawling investigation involved the FBI, U.S. Department of Labor’s Office of Inspector General, U.S. Postal Inspection Service, and the Storm Lake Police Department. Additional support came from law enforcement in Arizona, Massachusetts, Ohio, and Sac County, Iowa—highlighting the cross-state reach of the fraud.
This case is part of the DOJ’s nationwide crackdown on pandemic fraud. Anyone with information about similar schemes is urged to contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online. Case files 20-CR-4062, 20-CR-3027, and 20-CR-0064 are publicly accessible via the federal court’s electronic system. Follow @USAO_NDIA for updates.
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Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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