Pair Plead Guilty in CARES Act Fraud

ABINGDON, Va. - A pair of Virginia residents pled guilty recently to filing false claims for pandemic unemployment benefits for pandemic unemployment benefits authorized by the CARES Act. The CARES Act is a federal law, enacted in March of 2020, that was designed to provide emergency financial assistance to people affected by the COVID-19 pandemic.

Martha Sue Buffy Davis, 50, of Glade Spring, Va., and Robert Walter Neely, 47, both pled guilty to one count of conspiring to defraud the United States and commit an offense against the United States by filing fraudulent claims for pandemic unemployment benefits as authorized by federal law. Both defendants are scheduled for sentencing on December 18, 2026.

According to court documents, from July 2020 through May 2021, Davis, Neely, and others, conspired to file false and fraudulent claims for pandemic unemployment benefits. It was part of the conspiracy that Neely provided personal identifying information (PII) to Davis, who filed and recertified the false claims with the Virginia Employment Commission (VEC).

To perpetuate the scheme, Davis listed a non-existent business, "Buff-N-Shine Cleaning," that she invented for the purpose of filing the fraudulent claims for unemployment benefits with the VEC. In addition, Davis obtained PII and assisted other co-conspirators in filing and recertifying fraudulent claims for unemployment benefits. First Assistant United States Attorney Robert N. Tracci made the announcement.

The Federal Bureau of Investigation, the United States Department of Labor, and the Virginia Employment Commission investigated the case.

First Assistant United States Attorney Robert N. Tracci and Ian Kaufmann, Special Agent in Charge of the FBI's Richmond Division made the announcement.

Assistant U.S. Attorney Danielle Stone and Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Virginia Office of the Attorney General Senior Assistant Attorney General assigned to the Major Crimes and Emerging Threats Section, are prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.