PA Used Car Dealers Got Huge COVID Payouts In Fraud Scheme: Feds

PENNSYLVANIA — A pair of used car dealers in Pennsylvania received major payouts in COVID-19 recovery funding after filing fake benefit applications, according to authorities.

Joshua DeWitt, 36, and Terrence Newmeyer Jr., 45, who worked for RC Auto Sales, face mail fraud and conspiracy charges after a federal grand jury investigation.

The pair, both residents of Connellsville in Fayette County, put in applicatiions through the Pandemic Unemployment Assistance and Paycheck Protection Program on behalf of customers at their delaership, according to the U.S. Attorney's Office in Western Pennsylvania.

“(This programs) were created to provide emergency financial assistance to eligible individuals and companies that were suffering from the negative economic effects of the COVID-19 pandemic,” U.S. Attorney Cindy Chung said in a statement “We will continue to work with our law enforcement partners to disrupt these fraud schemes and prosecute people who exploit these programs for personal enrichment.”

When customers received debit cards in the mail loaded with relief funds, the men told the customers to withdraw the cash and give it to them, the U.S. Attorney's Office said.

The money was accepted as payment to buy vehicles, items, and other services, according to officials.

An investigation into the pair was ongoing for two years.

Both men face up to 30 years in prison or a $1 million fine if convicted.

Agencies that looked into the case included the Pennsylvania State Police, the U.S. Department of Labor Office of Inspector General, and the Fayette County District Attorney's Office.