Ruth Marie Phillips, Theft of Federal Funds, West Virginia 2021

Ruth Marie Phillips, 69, a Chesapeake, Ohio, woman, was ordered to pay more than $4.65 million in restitution for stealing federal funds from River Valley Child Development Services (RVCDS), a non-profit organization located in Huntington, West Virginia.

Phillips, also known as Marie Phillips, previously pleaded guilty in September 2021 to stealing approximately $4,721,731 from RVCDS between December 2013 and August 2020. She worked at RVCDS from December 1986 until September 2020, and held various positions at the non-profit organization, including Director of Business and Finance.

According to the court documents, Phillips used her position of trust and authority to steal federal funds from RVCDS. She sent $1,142,500 to her personal checking account and sent another $3,395,500 to Attitude Aviation’s bank account. Attitude Aviation has offices at Lawrence County Airpark in South Point, Ohio, and Tri-State Airport in Huntington and provides aeronautical services, including fueling, rental of hangar space, aircraft rental, flight instruction, and maintenance.

Phillips agreed to forfeit substantial assets, including $601,638.77 in proceeds from the sale of six airplanes; $304,576.49 in proceeds from the sale of a lake house at Smith Mountain Lake in Virginia that she bought during her scheme to defraud the non-profit; and $169,954.58 in proceeds from the sale of property in Randolph County. She has also agreed to forfeit proceeds from the sale of her residence in Chesapeake, Ohio, and several vehicles, including a Lexus RX and a Chevrolet Corvette.

United States District Judge Robert C. Chambers ordered the restitution, offsetting the $4.7 million figure by more than $71,000 already returned to RVCDS. In January 2022, Chambers sentenced Phillips to seven years in federal prison, departing upward from the sentencing guidelines, noting that the guideline range failed to account for the substantial harm Phillips caused the non-profit in the community and the impact Phillips’ theft had on taxpayers.

U.S. Attorney Will Thompson announced the restitution order.

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