Crystal Renee Severson, 45, of Gauley Bridge, pleaded guilty on Mar. 19 to a federal charge of fraud and related activity in connection with identification documents, features, and information.
The case highlights the risks of financial misconduct within public agencies that handle licensing and application fees. According to court documents and statements made in court, Severson worked as an administrative assistant at the West Virginia Board of Barbers and Cosmetologists from March 28, 2016, to March 16, 2022. Her responsibilities included receiving applications and fees from individuals seeking licensure as nail technicians.
On January 10, 2022, Severson altered a $100 money order submitted by a licensure applicant by removing the payee’s name and address. She admitted in her plea agreement that she replaced this information with her mother’s name and address before depositing the money order into her own bank account. Severson also acknowledged that her mother was unaware of the alteration and had not given permission for her name to be used.
Severson further admitted to fraudulently depositing nineteen other money orders submitted by applicants between August 21, 2019, and November 23, 2021. The total amount deposited through these twenty fraudulent transactions was $1,855.
Sentencing is scheduled for July 9, 2026. Severson faces up to five years in prison, three years of supervised release, a fine of up to $250,000, and restitution of at least $1,855.
United States Attorney Moore Capito announced the plea agreement and commended the investigative work conducted by Internal Revenue Service-Criminal Investigations (IRS-CI) and the West Virginia Commission on Special Investigations. United States District Judge Thomas E. Johnston presided over the hearing while Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
