CHARLESTON, W.Va. – Another West Virginian has felt the sting of federal justice for exploiting the COVID-19 pandemic. James Lomax, 34, of Hurricane, was sentenced today to three years of federal probation, including four months of home detention, and slapped with a $13,312 restitution order after admitting to stealing public funds through unemployment fraud.
Court records show Lomax, a former sales manager at a St. Albans auto dealership, legitimately filed for unemployment benefits after being laid off on March 24, 2020. He received benefits for a short period, but then returned to work and kept collecting, falsely certifying to WorkForce West Virginia for 13 weeks that he remained unemployed. Lomax used his personal electronic device to submit these false claims from his home in St. Albans.
The scheme netted Lomax approximately $13,312, including funds from the Federal Pandemic Unemployment Compensation Program (FPUC) under the CARES Act. He confessed to using the stolen money to cover personal purchases and bills – a blatant disregard for taxpayers and those genuinely in need during a crisis. This wasn’t a victimless crime; it diverted resources from families struggling to survive.
Lomax isn’t alone in this pandemic-fueled fraud. His father, Gary Lomax, 63, of Hurricane, received five years probation and a $29,592 restitution order in November for a similar scheme. Another co-worker, Christopher Grant, 42, of Buckhannon, was also sentenced to five years probation and a $35,168 restitution order last month. It appears this wasn’t an isolated incident, but a pattern of abuse.
Acting United States Attorney Lisa G. Johnston announced the sentencing, praising the work of WorkForce West Virginia’s Integrity Section, the NASA Office of Inspector General, the U.S. Attorney’s Office Litigation Financial Analyst, and the West Virginia State Police – Bureau of Criminal Investigation. The NASA OIG’s involvement highlights the broad scope of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, which is tracking down billions in fraudulent COVID-19 relief spending.
United States District Judge Irene C. Berger handed down the sentence. Assistant U.S. Attorneys Andrew J. Tessman and J. Parker Bazzle II prosecuted the case. Anyone with information about COVID-19 related fraud is urged to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. This case serves as a warning: exploiting a crisis for personal gain will be met with federal prosecution.
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Key Facts
- State: West Virginia
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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