RALEIGH COUNTY, WV (LOOTPRESS) – A Raleigh County man has been sentenced in connection with a multi-million-dollar COVID-19 relief fraud scheme.
According to federal officials, Ross Jay Bailey, 50, of Cool Ridge, was sentenced to five years of federal probation, including two years on home detention, and ordered to pay $1,596,301.46 in restitution for theft of government money.
Authorities said Bailey obtained a $2 million loan through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for his business but instead used at least $1.4 million of the funds for personal enrichment. Bailey has since paid the restitution in full.
Court documents state that Bailey initially secured a $150,000 Economic Injury Disaster Loan (EIDL) in June 2020 for his business, R&R Delivery Service Inc., through the Small Business Administration.
He later increased the loan to $500,000 in August 2021 and to the $2 million maximum in February 2022, certifying that the funds would be used for business-related expenses caused by the pandemic.
Prosecutors said Bailey instead transferred at least $1.4 million from the business account to his personal account between March and May 2022, using the money to purchase stocks and cryptocurrency.
In addition to criminal restitution, Bailey agreed to pay $2,403,698.54 to resolve civil claims under the False Claims Act and other statutes.
Two of Bailey’s relatives were also charged in connection with similar schemes. His brother, Ryan Keith Bailey, 47, of Beaver, was sentenced in September 2025 to one year and two months in prison followed by three years of supervised release and ordered to pay $2,134,900 in restitution.
Authorities said he obtained more than $2.1 million in CARES Act loans and converted nearly all of the funds for personal use.
A cousin, Mark William Bailey, 53, of Beckley, pleaded guilty in 2023 to stealing approximately $451,237.51 in SBA loans. He was sentenced in October 2024 to five years of probation, including one year on home detention, and paid full restitution along with a civil penalty.
“He didn’t just break the law – he exploited a moment of national crisis for personal profit,” United States Attorney Moore Capito said of Ross Jay Bailey.
“While families were struggling to survive and small businesses were fighting to keep their doors open, these three treated relief funds like a personal bank account. Today’s sentence makes clear that greed dressed up as opportunity will be met with accountability. We will find those who steal from the public trust, and we will hold them to answer — no matter how they try to hide it, and no matter how many of them there are.”
The Bailey family members are among more than 30 individuals convicted in the Southern District of West Virginia in cases involving fraudulent use of COVID-19 relief funds. Court-ordered restitution in those cases exceeds $5 million, officials said.
The investigation involved multiple agencies, including the NASA Office of Inspector General, the United States Secret Service, and the West Virginia State Police Bureau of Criminal Investigations.
Chief United States District Judge Frank W. Volk imposed the sentence. The case was prosecuted by Assistant United States Attorney Erik S. Goes, with assistance from other federal prosecutors.
