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 of 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 had 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 gain instead of its intended purpose.
The case highlights ongoing efforts by federal authorities to address fraud involving pandemic relief programs that were designed to help struggling businesses during the national emergency. According to United States Attorney Moore Capito, “He didn’t just break the law – he exploited a moment of national crisis for personal profit. 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.”
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 over time up to the program’s $2 million maximum by February 2022. Despite certifying he would use all proceeds as working capital due to pandemic-related hardship, Bailey admitted transferring more than $1.4 million into his personal account between March and May 2022 for stock and cryptocurrency purchases.
Bailey’s brother Ryan Keith Bailey was previously sentenced in September 2025 after converting nearly all proceeds from over $2 million in CARES Act loans for personal use; civil penalties against him could exceed $9 million. Their cousin Mark William Bailey also pleaded guilty last year after misusing approximately $451,000 in SBA loans.
Robert Steinau from NASA’s Office of Inspector General said: “Exploiting emergency government assistance programs betrays public trust and steals directly from hard-working Americans… ensuring that individuals who manipulate federal systems for personal gain are held accountable.” The National Aeronautics and Space Administration Office of Inspector General worked alongside several agencies on this investigation.
The U.S. Attorney for the Southern District of West Virginia improves communities and upholds justice through enforcement of federal laws according to the official website. The office operates under the United States Department of Justice according to its official website with a staff comprising 37 attorneys and 40 other personnel according to its official website. It prosecutes federal crimes and handles civil cases across 23 counties in southern West Virginia as reported by its official site, offering prosecution services as well as representation in civil litigation according to its official website.
Broader implications include continued vigilance against pandemic-related frauds; more than thirty individuals have been convicted so far within this district alone with total court-ordered restitution exceeding five million dollars.
