ABINGDON, Va. – Four despicable con artists from Southwest Virginia have been locked up for their roles in a $499,000 pandemic unemployment fraud and mail scheme. Randall Johnson, 42, of Castlewood, was handed a 24-month sentence, while Steven Mullins, 34, of Big Stone Gap, received 27 months. Ajay Johnson, 26, from Fruitland Park, Fla., got 30 months, and Patrick Payne, 43, of Big Stone Gap, also faced 24 months in federal prison.
“The nearly $500,000 stolen by this conspiracy could have helped Virginians in dire need,” fumed U.S. Attorney Christopher R. Kavanaugh. “But these fraudsters chose to enrich themselves at a time of national crisis.”
IRS-CI’s Darrell Waldon emphasized the relentless pursuit of Covid-19-related fraud, noting, “We will continue to root out these bad actors.”
The U.S. Department of Labor Office of Inspector General’s Syreeta Scott vowed to preserve PUA program integrity, pointing out that conspiracy members submitted false claims for prisoners and others ineligible.
According to court documents, the four fraudsters conspired with 23 others to file false unemployment claims, re-verifying false statements weekly. Their scheme cost taxpayers at least $499,000. Eight co-conspirators have already entered into plea agreements.
The investigation was a collaborative effort by various agencies including the Department of Labor Inspector General, IRS-CI, Norton Police, and Russell County Sheriff’s Office. Assistant U.S. Attorney Daniel J. Murphy led the prosecution.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to combat pandemic-related fraud.
RELATED: Peoria Man Gets Probation for PPP Scam: $30K in Fraud
RELATED: Willie Curry Sentenced for COVID-19 Relief Fraud
Related Federal Cases
- Grave Robbery: WV Cemetery Owner Admits Fraud · Virginia
- WV Barber Board Staffer Pilfers Fees · West Virginia
- WV Cemetery Owner Plundered Grieving Families · West Virginia
- WV Barber Board Staffer Scammed Nail Techs, Pocketed $1855 · West Virginia
- WV Biz Owner Cashed In on COVID Chaos · West Virginia
Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News