BECKLEY, WV (LOOTPRESS) — A Raleigh County man has pleaded guilty to stealing more than $2.1 million in federal pandemic relief funds intended to help struggling businesses during the COVID-19 crisis.
Ryan Keith Bailey, 47, of Beaver, admitted in federal court on Wednesday to theft of government money after fraudulently obtaining and misusing funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Bailey diverted nearly all of the $2,166,517.40 he received through Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funding for personal use rather than legitimate business expenses.
According to court documents, Bailey applied for a $166,517.40 PPP loan on April 20, 2020, on behalf of his company, RKB Inc., falsely certifying that the funds would be used for payroll, rent, utilities, and mortgage interest. The loan was approved and deposited into RKB Inc.’s business account by May 1, 2020. Later that year, Bailey falsely certified again that the funds had been properly used when applying for loan forgiveness, resulting in $157,456.50 of the loan being forgiven by the SBA.
However, Bailey later admitted that only $6,517 of the funds were spent on legitimate business expenses, while approximately $160,000 was transferred into his personal bank and brokerage accounts within weeks of receiving the funds.
Bailey also admitted to further fraudulent conduct involving a separate EIDL loan. On January 6, 2021, he secured an initial loan of $150,000 for RKB Inc., then applied multiple times to increase the loan amount—ultimately securing the maximum $2 million. Of that, more than $1.97 million was transferred to personal accounts, including a cryptocurrency platform, for his own benefit.
Bailey is scheduled to be sentenced on September 12, 2025, and faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He is also responsible for repaying at least $2.2 million in restitution, with the final amount to be determined by the court.
The case was investigated by the NASA Office of Inspector General (OIG), U.S. Secret Service, West Virginia State Police Bureau of Criminal Investigations, and the West Virginia State Auditor’s Office Public Integrity and Fraud Unit. It was prosecuted by Assistant U.S. Attorney Erik S. Goes.
This case is part of broader efforts led by the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, which investigates misuse of the more than $5 trillion in federal pandemic relief spending. The PRAC’s Pandemic Analytics Center of Excellence also supported the case through data analysis.
In addition to the criminal charges, the United States has filed a civil lawsuit and a forfeiture complaint against Bailey and his company, seeking damages and penalties for alleged violations of the False Claims Act and other statutes. Authorities are pursuing the forfeiture of more than $1.3 million from Bailey’s personal accounts.
Anyone with information about COVID-19 fraud is encouraged to contact the Department of Justice’s National Center for Disaster Fraud at 866-720-5721 or submit a report online at justice.gov/disaster-fraud.
