Patrick Payne, Pandemic Unemployment Benefits Scheme, Virginia 2024

Pandemic Unemployment Scammers Caught

ABINGDON, Va.—Five Southwest Virginia residents have been convicted of orchestrating a massive pandemic unemployment benefits scheme, netting them over $499,000 in stolen funds.

Patrick Payne, 43, Randall Johnson, 42, Steven Mullins Jr., 33, Curtis Mullins, 25 and Melinda Davis, 58, all pleaded guilty to conspiracy to defraud the United States and conspiracy to commit mail fraud in U.S. District Court in Abingdon. The scheme involved filing false claims for pandemic unemployment benefits on behalf of ineligible individuals, including those incarcerated in southwest Virginia regional jails.

According to court documents, the conspiracy members lied on the filings to make the claimants appear eligible for benefits. The pandemic unemployment benefits were paid weekly, requiring re-verification and re-certification of the false statements on multiple occasions throughout the scheme. In total, the conspiracy filed fraudulent claims for approximately 37 individuals.

The scheme was uncovered by the Internal Revenue Service, Department of Labor, and the Virginia Employment Commission, who worked together to investigate the case. “These five individuals used a carefully orchestrated series of lies to steal hundreds of thousands of dollars intended for Virginians struggling during a once-in-a-generation global health pandemic,” said Acting United States Attorney Daniel P. Bubar.

Each of the individuals faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The case is being prosecuted by Assistant United States Attorney Daniel J. Murphy.

The COVID-19 Fraud Enforcement Task Force, established by the Attorney General in 2021, has been instrumental in combating pandemic-related fraud. The task force brings together agencies across government to enhance efforts to investigate and prosecute those responsible.

The investigation was conducted by the Department of Labor Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, in conjunction with state and local partners, including the Norton Police Department and Russell County Sheriff’s Office.

Related Federal Cases