BECKLEY, WV – Mark William Bailey, 50, of Beckley, isn’t just facing a hefty fine and potential jail time – he’s facing the consequences of blatant greed. Bailey pleaded guilty today to stealing a staggering $451,237.51 in COVID-19 relief loans, money earmarked to keep businesses afloat during a national crisis. Instead, he used it to line his own pockets.
Court documents paint a clear picture of calculated fraud. In July 2020, Bailey, as the sole owner and president of RMR Delivery Service Inc., secured an Economic Injury Disaster Loan (EIDL) for $150,000. The CARES Act program was designed to provide a lifeline to legitimate businesses reeling from the pandemic’s economic fallout. But Bailey wasn’t interested in survival; he saw an opportunity. He repeatedly bumped up his loan requests, eventually reaching a staggering $2 million, all while falsely claiming the funds would be used as working capital.
The lies didn’t stop there. From March 2022 through October 2022, Bailey brazenly diverted approximately $403,768.04 of the EIDL proceeds for personal expenses. The evidence? A new garage. A personal vehicle. The funds weren’t going to payroll or rent; they were funding a lifestyle upgrade courtesy of American taxpayers. As if that weren’t enough, Bailey also snagged a $110,032 Paycheck Protection Program (PPP) loan in April 2020, and swiftly misappropriated $47,469.47 to pay his personal mortgage in June of the same year.
United States Attorney Will Thompson didn’t mince words: “The CARES Act offered an emergency lifeline amid a devastating pandemic, and Mr. Bailey saw this as an opportunity to enrich himself at the expense of taxpayers.” The investigation was a collaborative effort, involving the NASA Office of Inspector General, the U.S. Secret Service, the West Virginia State Police, and the West Virginia State Auditor’s Office – a clear indication of the seriousness with which authorities are treating these abuses.
Bailey is scheduled to be sentenced on January 12, 2024, and faces up to 10 years in federal prison. The potential penalty also includes three years of supervised release and a $250,000 fine. But that’s not all. Bailey is also on the hook to repay the full $451,237.51 he stole. Special Agent in Charge Adelle Harris of the NASA OIG Eastern Field Office emphasized the commitment to accountability, while West Virginia State Auditor J.B. McCuskey underscored the importance of protecting taxpayer dollars.
United States District Judge Frank W. Volk presided over the hearing. This case serves as a stark reminder that while the pandemic created unprecedented challenges, it also spawned a wave of opportunistic fraud. The U.S. Secret Service and its partners are sending a message: stealing from COVID-19 relief programs won’t pay – it will land you in federal prison.”
Related Federal Cases
- Bradley Temple, COVID-19 Relief Money Embezzlement, Wheeling WV, 2023 · Virginia
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- Jeffrey Phares, Cemetery Fraud, West Virginia, 2023 · Virginia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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