
Raleigh County man pleads guilty to COVID-era business loan fraud
beckley – A Raleigh County man is awaiting sentencing in U.S. District Court after entering a guilty plea for theft of government money.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing on June 2 in which Ross Jay Bailey, 50, of Cool Ridge, pleaded guilty to obtaining a $2 million loan through the Coronavirus Aid, Relief, and Economic Security Act for his business and then converting at least $1.4 million in funds to 'his personal enrichment,' states a news release from the U.S. Department of Justice.
On or about June 30, 2020, Bailey obtained a $150,000 Economic Injury Disaster Loan for his business, R&R Delivery Service Inc. The CARES Act authorized the Small Business Administration to provide EIDL program loans of up to $2 million to eligible small businesses that were experiencing 'financial disruption due to the COVID-19 pandemic,' according to court documents and statements made in court
'Bailey successfully applied to increase the loan amount in August 2021 to $500,000 and in February 2022 to the $2 million maximum. Bailey certified that he would use all loans proceeds solely as working capital to alleviate economic injury caused by the pandemic,' states the news release.
Court officials said Bailey admitted that he transferred at least $1.4 million of the EIDL proceeds from his business's bank account to his personal bank account from on or about March 1, 2022, through on or about May 31, 2022, as a condition of his guilty please.
'Bailey further admitted that he converted these funds into purchases of stock and cryptocurrency for his personal enrichment,' the release continues.
Bailey is scheduled to be sentenced on Oct. 10 and faces a maximum penalty of 10 years in prison, up to three years of supervised release and a $250,000 fine. Bailey also owes at least $1.5 million in restitution, with a final amount to be determined by the Court.
Acting United States Attorney Lisa G. Johnston commended the investigative work of the National Aeronautics and Space Administration Office of Inspector General, the US Secret Service, the West Virginia State Police-Bureau of Criminal Investigations and the West Virginia State Auditor's Office Public Integrity and Fraud Unit.
Bailey's brother, Ryan Keith Bailey, 47, of Beaver, pleaded guilty on May 7 to theft of government money. Ryan Keith Bailey obtained $2,166,517.40 in loans through the CARES Act for his business and instead converted nearly all of the proceeds for his personal use. He is scheduled to be sentenced Sept. 12.
Mark William Bailey, 52, of Beckley and a cousin of Ross Jay Bailey and Ryan Keith Bailey, pleaded guilty on Sept. 8, 2023, to theft of government money, after he admitted he stole approximately $451,237.51 in SBA loans he obtained through the CARES Act. On October 25, 2024, Mark William Bailey was sentenced to five years of federal probation, including one year on home detention, and paid $451,237.51 in restitution and an additional $451,237.98 as a civil penalty to settle False Claims Act allegations.
NASA OIG is an active member of the Pandemic Response Accountability Committee Fraud Task Force, which was created to promote transparency and facilitate oversight of the federal government's COVID-19 pandemic response. The PRAC's 20 member Inspectors General identify risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, which includes funds awarded via the Paycheck Protection and EIDL programs. This case was also supported by the PRAC's Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
Assistant United States Attorney Erik S. Goes is prosecuting the case.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice's National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Miami Herald
18 minutes ago
- Miami Herald
Popular nationwide beauty chain files for Chapter 11 bankruptcy
The beauty industry has faced economic challenges and financial distress over the last five years since the Covid-19 pandemic temporarily derailed most retail industries. Companies have dealt with rising labor and product costs exacerbated by inflation, increased interest rates, cautious consumers who are watching their budgets in uncertain economic times, and fierce competition. Don't miss the move: Subscribe to TheStreet's free daily newsletter Some of the biggest names in the beauty business suffered from the Covid-19 fallout and filed for bankruptcy protection, including Revlon, which filed for Chapter 11 bankruptcy in June 2022, and Avon, which filed for Chapter 11 bankruptcy in August 2024. Related: Popular local Dairy Queen rival files for Chapter 11 bankruptcy Beauty technology company Cutera filed for a prepackaged Chapter 11 bankruptcy on March 5, 2025, to reduce its debt by $400 million, and award-winning cosmetics company SBLA Beauty filed for Chapter 11 protection on March 11, 2025, to reorganize its business and restructure its debt. Also, telehealth company Hims & Hers Health shut down its acne treatment dermatology business, Apostrophe, also on March 7, 2025, after buying the San Francisco-based company four years ago for about $190 million. The company, however, did not file for bankruptcy protection. Hims & Hers transitioned away from the Apostrophe brand and encouraged patients to try its brand's treatment options, the company revealed on its website. Another skincare brand Futurewise Inc. revealed that it discontinued orders on its website beginning March 24, 2025. "Goodbye for now," the skincare brand wrote on its website. "After a lot of thought, we have made the hard decision to sunset Futurewise. Futurewise, which offered its skincare products Slug Boost, Slug Cream, Slug Balm, and Face Melt, for its "slugging" practice of skincare, also did not file for bankruptcy. In addition to skin care products, spa services for weight loss, non-surgical body improvements, slimming, and toning are also a major part of the beauty industry. One beauty service chain in Tuscaloosa, Ala., faced severe financial issues, filed for bankruptcy, and closed its business. Medical spa Body Oasis filed for bankruptcy on Nov. 6, 2024, and shut down all of its operations, reportedly leaving customers in limbo, ABC-33/40 News reported. Finally, national spa services chain Contour Spa LLC filed for Chapter 11 bankruptcy protection to reorganize its business, facing significant debt obligations. Related: Huge auto parts company files for Chapter 11 bankruptcy The Orlando, Fla.-based company filed its petition in the U.S. Bankruptcy Court for the Middle District of Florida on June 11, while at least 23 affiliates filed their petitions the following day. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The debtor listed $500,000 to $1 million in assets and $1 million to $10 million in liabilities in its petition, including over $562,000 owed to Lanco Equities, over $344.000 owed to Kash Advance LLC, over $339,000 owed to Formentera Capital Group, over $377,000 owed to Liberta Funding LLC, and over $239,000 owed to American Express. The company has authorized CEO Roger A. Farwell to seek approval of a debtor-in-possession financing agreement, according to RK Consultants. Contour Spa offers its Cryo Slimming sessions using its slimming and toning protocols designed to reduce cellulite, tighten skin, achieve permanent fat loss, and minimize stretch marks. The spa service also offers its Cryo Facials, which can be obtained for free through its $99 introductory offer, according to its website. Related: Major trucking company files Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
24 minutes ago
- Yahoo
Effort to strip Fed of interest paying power seen likely to bring upheaval to markets
By Michael S. Derby NEW YORK (Reuters) -A Republican senator's plan to take away the Federal Reserve's power to pay banks interest on cash they park on central bank books could cause chaos for monetary policy implementation if it were implemented, market participants said. In recent days, Senator Ted Cruz of Texas has been speaking about this power and his desire to see it ended as part of what he views as an effort to save money by the federal government. Stripping the Fed of the longstanding power would save the government $1 trillion, Cruz said in a CNBC interview last week. The senator said then that he did not know if it was likely his effort would work but that it was certainly possible. On Wednesday, Bloomberg reported that Cruz had also lobbied President Donald Trump, who has long been at odds with the Fed, as well as Republican colleagues, about his idea. 'We're agonizing trying to find a $50 billion cut here and there. This is over a trillion dollars, big dollars in savings,' Cruz told Bloomberg, saying of the payments, 'half of it is going to foreign banks, which makes no sense.' Cruz's office did not respond to a request for comment. The Fed declined to comment. Cruz's effort is being treated cautiously by Senator Tim Scott, the Republican from South Carolina who chairs the Senate Finance Committee. "While the desire to return to pre-crisis monetary policy operating procedures is understandable," the matter must be considered under normal Senate procedures, Scott said in a statement. Any move on this must start with a hearing, Scott said, adding, "this is not a decision to be rushed – it must be carefully considered and openly debated." The Fed's power to pay banks interest, granted by Congress, took effect in 2008 as the financial crisis dawned. It quickly gained prominence as part of a large-scale overhaul of the monetary policy architecture, as the Fed confronted the greatest economic downturn since the Great Depression. As it now stands, the Fed pays deposit-taking banks 4.4% for reserves. It uses another tool called the reverse repo facility to take in cash from money market funds and others, paying them 4.25%. Together, the two rates are designed to keep the federal funds rate, the central bank's main tool for influencing the economy, within the desired range. Paying financial firms for de facto loans of cash is essential for interest rate control due to the very large amount of liquidity created by bond buying stimulus efforts. During the COVID-19 pandemic, the Fed more than doubled the size of its balance sheet to a peak of $9 trillion, with asset purchases providing support to the economy beyond what the then near-zero short-term rates could deliver. If the Fed did not have the power to pay interest on deposits, the still substantial amount of liquidity sloshing around in markets would prevent it from controlling short-term rates. That said, concerns have long existed, even among some former central bankers, that paying banks money to deposit cash at the Fed is effectively a subsidy to banks. The other issue with paying interest on reserves is that it has led the Fed into an unprecedented period of loss-making. The Fed has been operating in the red because the interest rate it now has in place outstrips the income it earns off bonds it owns. Most analysts expect the loss-making to occur for some time to come. Fed losses mean that it is not handing over profits back to the Treasury, as it is required to do when it is in the green. Sums handed back to the Treasury over recent years contributed modestly to lowering deficits. Experts believe Cruz's plan would completely fail to achieve its goals and would instead cause huge upheaval in money markets. Barclays Capital economists said on Tuesday that ending the power would simply push the cash into the reverse repo facility, which means the central bank would still be paying lots of interest to financial firms, thus negating any deficit savings. J.P. Morgan strategists said in a note last week that under Cruz's plan, 'the Fed's ability to control money market rates may be compromised, complicating its efforts to guide broader financial conditions via the fed funds rate and other money market rates.'
Yahoo
26 minutes ago
- Yahoo
Perma-Pipe International Holdings, Inc. Announces the Departure of David Mansfield and the Appointment of Saleh Sagr as President and Chief Executive Officer
SPRING, Texas, June 12, 2025--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH, or "Perma-Pipe"), today announced the departure of David Mansfield as Chief Executive Officer ("CEO"), effective June 7, 2025. Concurrent with this announcement, the Board of Directors (the "Board") has appointed Saleh Sagr to serve as President and Chief Executive Officer. Chairman of the Board Jerome T. Walker commented: "On behalf of the Board of Directors, I want to thank David for his service to Perma-Pipe, and we wish him all the best. The Board is thrilled to welcome Saleh Sagr as our new CEO. He has a proven track record of strategic vision, operational insight, outstanding customer relationships, and strong leadership and we are confident that he will lead Perma-Pipe through continued growth and innovation." On his appointment, Mr. Sagr commented: "I am honored to be appointed CEO of Perma-Pipe, and I'm grateful to the Board for their trust and confidence in me. Additionally, I would like to thank David Mansfield for his support and trust. I look forward to collaborating closely with our talented global teams, customers, and partners to continue delivering value, innovation, and excellence across all markets we serve." Mr. Sagr joined Perma-Pipe in 2019 and has held several executive roles, most recently as President. Saleh brings over 30 years of international experience in operations, engineering, and executive leadership across the energy and infrastructure sectors. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH, "Perma-Pipe", or the "Company") is a global leader in pre-insulated piping and leak detection systems for oil and gas, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, Perma-Pipe has operations at fourteen locations in six countries. Forward-Looking Statements Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company's ability to repay its debt and renew expiring international credit facilities; (v) the Company's ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company's ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company's products; (ix) decreases in government spending on projects using the Company's products, and challenges to the Company's non-government customers' liquidity and access to capital funds; (x) the Company's ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company's ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company's ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company's backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related to the Company's international business operations; (xvii) the Company's ability to attract and retain senior management and key personnel; (xviii) the Company's ability to achieve the expected benefits of its growth initiatives; (xix) the Company's ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company's percentage-of-completion revenue recognition; (xxii) the Company's failure to establish and maintain effective internal control over financial reporting; and (xxiii) the impact of cybersecurity threats on the Company's information technology systems. Shareholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at and under the Investor Center section of our website ( View source version on Contacts Perma-Pipe International Holdings, Inc. Saleh Sagr, President and CEO Perma-Pipe Investor Relations 847.929.1200investor@