Ross Jay Bailey, owner of R&R Delivery Service, first applied and obtained an Economic Injury Disaster Loan (EIDL) of $150,000 on behalf of his business with the promise that he would use all loan proceeds solely as working capital to alleviate economic injury caused by the pandemic – the “keeping the lights” on expenses that became a burden for small businesses. But two years later and after numerous fraudulent applications, Ross amassed over $2 million in loan proceeds with a fraud blueprint many in his family were using.
A year after his first EIDL disbursement, Ross submitted applications to increase the loan, first to $500,000 in August 2021 and eventually to the $2 million maximum by February 2022. He transferred at least $1.4 million of the EIDL funds from his business’s bank account to his personal bank account where he proceeded to convert the working capital relief into purchases of stock and cryptocurrency.
During this same time, Ross’s brother Ryan fraudulently obtained $2 million for his trucking and warehouse business and converted nearly all of the proceeds for his personal use, including purchasing cryptocurrencies. And these two brothers were joined by their cousin, Mark Bailey, who also fraudulently received pandemic relief loans for his delivery company and converted much of those proceeds for his own personal use. A family of fraudsters, stealing $6 million from the U.S. taxpayer.
On June 2, 2025, Ross pleaded guilty to theft of government money. He is scheduled to be sentenced on October 10, 2025, where he faces a maximum penalty of 10 years in prison. He owes at least $1,518,013.58 in restitution. Ryan and Mark had previously pleaded guilty to the same charges. Mark was sentenced to five years of federal probation. Ryan awaits his sentence.
Great job by the COVID-19 Fraud Enforcement Task Force in this case.
Today’s Fraud of The Day is based on article “West Virginia Man Admits to Misusing $2 Million COVID Relief Loan” published b WV News on June 2, 2025.
Ross Jay Bailey, 50, admitted in federal court to theft of government money after receiving an Economic Injury Disaster Loan (EIDL) through the CARES Act for his business, R&R Delivery Service Inc. Instead of using the funds as required, federal investigators say Bailey diverted at least $1.4 million for personal use, including investments in stocks and cryptocurrency.
Bailey initially received $150,000 on June 30, 2020. He later submitted applications to increase the loan—first to $500,000 in August 2021 and eventually to the $2 million maximum by February 2022.
