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ELKINS - A Randolph County woman admitted in federal court this week that she collected more than $440,000 through COVID-related fraud, officials said.
Leigh Ann Rinehart, 54, of Elkins, pleaded guilty to bank fraud in federal court in Elkins, U.S. Attorney Matthew L. Harvey announced Thursday.
According to court documents filed, Rinehart participated in a scheme to fraudulently obtain unemployment benefits during the COVID-19 pandemic. The scheme involved unnamed individuals applying for and obtaining unemployment benefits fraudulently in the names of multiple individuals across several states, including Nevada, California, New York and others.
Once benefits were approved, Electronic Benefit Payment (EBP) debit cards were sent to Rinehart's address in Elkins. Those EBP cards were loaded with benefits totaling more than $440,000 from the various states for individuals whose identity was fraudulently used to obtain the benefits, regardless of where they lived.
"Rinehart received the cards, activated them, and used them to withdraw funds, purchase money orders, buy cryptocurrency or other items which she then sent to other individuals participating in the scheme or deposited into her own account," a U.S. Attorney’s Office press release states. "Investigators determined that none of the named claimants resided in West Virginia, and none authorized Rinehart to possess or use their unemployment benefits."
More than 24 EBP cards were sent to Rinehart's residence from June 2020 through November 2022.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case. The Homeland Security Investigations Office of Inspector General, Department of Labor Office of Inspector General, U.S. Postal Inspection Service and Workforce West Virginia investigated.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is investigating and prosecuting those who commit fraud against the American people.
U.S. Magistrate Judge Michael John Aloi presided.