Ross Jay Bailey, a 50-year-old resident of Cool Ridge, was sentenced on April 24 to five years of federal probation, including two years on home detention, and ordered to pay $1,596,301.46 in restitution after pleading guilty to theft of government money related to COVID-19 relief funds. Bailey obtained a $2 million loan through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for his business but used at least $1.4 million for personal purposes. He has paid the full restitution amount.
The case highlights ongoing efforts by federal authorities to address misuse of pandemic relief programs designed to support struggling businesses during the COVID-19 crisis. The U.S. Attorney for the Southern District of West Virginia prosecutes federal crimes and handles civil cases for the United States in order to enhance citizens' quality of life, according to the official website.
Court documents show that Bailey applied for an Economic Injury Disaster Loan (EIDL) in June 2020 on behalf of R&R Delivery Service Inc., initially receiving $150,000 before increasing it twice—first in August 2021 and again in February 2022—to reach the $2 million maximum allowed under CARES Act provisions. Despite certifying that all funds would be used as working capital due to pandemic-related hardship, Bailey transferred at least $1.4 million from his business account into his personal account between March and May 2022 and invested those funds in stock and cryptocurrency.
Bailey’s brother Ryan Keith Bailey was also sentenced after pleading guilty to theft of government money involving over $2 million in loans misused from similar programs; he faces more than three years’ supervised release following a prison term as well as over $2 million in restitution payments. Their cousin Mark William Bailey admitted stealing about $451,000 through SBA loans obtained via CARES Act funding; he received five years’ probation with one year home detention after repaying both criminal restitution and additional civil penalties.
United States Attorney Moore Capito said about Ross Jay Bailey: “He didn’t just break the law - he exploited a moment of national crisis for personal profit... Today’s sentence makes clear that greed dressed up as opportunity will be met with accountability.”
Robert Steinau from NASA’s Office of Inspector General added: “Exploiting emergency government assistance programs betrays public trust and steals directly from hard-working Americans.”
The U.S. Attorney's Office covers 23 counties across southern West Virginia under the United States Department of Justice according to its official website. The office employs 37 attorneys alongside other personnel who prosecute offenses and defend or represent federal interests.According to its official website, court-ordered restitution from more than thirty convictions involving fraudulent use or theft of COVID-19 relief funds now exceeds five million dollars within this district alone.
