BECKLEY, W.Va. – In a stunning blow to COVID-19 relief fraud, 47-year-old Ryan Keith Bailey of Beaver, Raleigh County, was today sentenced to one year and two months in federal prison for embezzling over $2 million in government aid intended for his business, RKB Inc.
According to court documents, Bailey, who swindled nearly all the proceeds from a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL), faces three years of supervised release after serving his time. He must also fork over $2,134,900 in restitution for his theft of government money.
The PPP loan, totaling $166,517.40, was meant to help maintain payroll and cover mortgage interest during the pandemic. But Bailey funneled $160,000 into his personal accounts instead, despite falsely certifying that he would use the funds solely for business purposes. His EIDL scheme was even more brazen, with over $1.974 million of the maximum $2 million loan going straight to his pockets.
Bailey’s deceitful application for loan forgiveness only added to his deceit, as he falsely certified that the proceeds were used for permissible expenses, leading to the SBA forgiving a portion of the PPP loan. The United States Attorney’s Office has frozen over $1.3 million in Bailey’s assets.
“This defendant stole more than $2.1 million in taxpayer funds,” Acting United States Attorney Lisa G. Johnston stated. “Today’s sentence shows this office will use all available means to bring those who commit such crimes to justice and recover their fraudulent gains.” The case was a collaborative effort involving the National Aeronautics and Space Administration Office of Inspector General (NASA OIG), the United States Secret Service, West Virginia State Police-Bureau of Criminal Investigations (BCI), the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU), and since-retired Litigation Financial Analyst Steve Rowley.
NASA OIG is a member of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, established to oversee the federal government’s COVID-19 pandemic response. The PRAC’s work on this case underscores the importance of preserving confidence in government relief programs and ensuring that aid reaches those who truly need it.
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Key Facts
- State: West Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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