Fayette County Auto Salesman Sentenced for Role in COVID-19 Relief Fraud Scheme

PITTSBURGH, Pa. – A resident of Fayette County, Pennsylvania, was sentenced today in federal court for conspiracy to commit mail and bank fraud, U.S. Attorney Eric G. Olshan announced today.

United States Senior District Judge Arthur J. Schwab sentenced Terrence Newmeyer Jr., 46, to one day in prison followed by three years of supervised release, including six months of home incarceration and six months of home detention. Newmeyer was also ordered to pay restitution in the total amount of $31,280.

According to information provided to the Court, Newmeyer was a salesman at RC Auto, a used car dealership in Fayette County. Along with his co-conspirator and RC Auto owner Joshua DeWitt, Newmeyer filed a series of fraudulent applications for Pandemic Unemployment Assistance benefits and Paycheck Protection Program (PPP) COVID-19 relief loans, including on behalf of customers, telling some that they were applying for funds that could be used to purchase a vehicle from the dealership. DeWitt and Newmeyer used the fraudulently obtained pandemic benefits for themselves and the dealership, by—among other things—accepting them as payment for vehicles and services sold.

DeWitt was sentenced on February 14, 2024, to 10 months of imprisonment, to be followed by two years of supervised release. He was also ordered to pay restitution in the total amount of $60,022.50.

Prior to imposing sentence on Newmeyer, Judge Schwab stated that the fraud conspiracy lasted for many months and involved intentional criminal activity.

Assistant United States Attorney Jeffrey Bengel prosecuted this case on behalf of the government.

United States Attorney Olshan commended the United States Department of Labor Office of the Inspector General, Pennsylvania State Police, and Fayette County District Attorney’s Office for the investigation leading to the successful prosecution of Newmeyer.