BECKLEY, WV (LOOTPRESS) – A Raleigh County man has been sentenced to prison for stealing more than $2.1 million in COVID-19 relief funds.
Ryan Keith Bailey, 47, of Beaver, was sentenced Tuesday to one year and two months in federal prison, followed by three years of supervised release. He was also ordered to pay $2,134,900 in restitution for theft of government money.
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According to court documents, Bailey obtained $2,166,517.40 in loans through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for his business, RKB Inc., and instead converted nearly all of the funds for personal use.
On April 20, 2020, Bailey applied for a $166,517.40 Paycheck Protection Program (PPP) loan, certifying that the money would be used for payroll, mortgage interest, lease, and utility costs.
The loan was approved and deposited on May 1, 2020. Within 19 days, Bailey transferred $160,000 of the funds into his personal accounts, spending nearly all of it for himself. Only $6,517 was used for legitimate business expenses.
Bailey later falsely certified that the loan was used properly when he applied for forgiveness, resulting in the Small Business Administration forgiving more than $157,000 of the debt.
He also admitted to fraud involving an Economic Injury Disaster Loan (EIDL) obtained in January 2021. Bailey successfully increased the loan amount from $150,000 to $2 million and transferred more than $1.9 million to personal accounts and a cryptocurrency exchange.
Bailey had already paid $192,000 toward restitution before sentencing. Federal authorities also froze more than $1.3 million of his assets.
“This defendant stole more than $2.1 million in taxpayer funds for his own personal benefit. Today’s sentence shows that this office will use all available means to bring those who commit such crimes to justice and recover their fraudulent gains,” said Acting United States Attorney Lisa G. Johnston.
“Prosecuting these schemes protects the contributions of hard-working Americans, preserves confidence in government relief programs, and ensures that aid from those programs reaches those who truly need it.”
The investigation involved the NASA Office of Inspector General, U.S. Secret Service, West Virginia State Police Bureau of Criminal Investigations, the West Virginia State Auditor’s Office Public Integrity and Fraud Unit, and the U.S. Attorney’s Office.
Chief U.S. District Judge Frank W. Volk imposed the sentence. Assistant U.S. Attorney Erik S. Goes prosecuted the case, with assistance from Asset Forfeiture Assistant U.S. Attorney Justin Marlowe.
Bailey’s case is part of a wider investigation involving members of his family. His brother, Ross Jay Bailey, 50, of Cool Ridge, pleaded guilty in June to theft of government money after stealing at least $1.4 million from a $2 million loan. He is scheduled to be sentenced December 12, 2025.
Their cousin, Mark William Bailey, 53, of Beckley, pleaded guilty in 2023 to stealing about $451,000 in SBA loans. He was sentenced last year to five years of probation, including one year of home detention, and ordered to pay restitution and additional civil penalties.
Individuals with information about COVID-19 relief fraud are encouraged to report it to the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or online at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
