A Fayette County woman has been sentenced in a federal fraud case involving money orders submitted by licensing applicants.
Crystal Renee Severson, 45, of Dixie, was sentenced to one year of federal probation and ordered to pay $1,855 in restitution, according to the U.S. Attorney’s Office for the Southern District of West Virginia.
Prosecutors said Severson worked as an administrative assistant for the West Virginia Board of Barbers and Cosmetologists, where part of her job involved receiving applications and fees from people seeking nail technician licenses.
Severson Worked With Licensing Applications and Fees
Severson worked for the state Board of Barbers and Cosmetologists from March 28, 2016, to March 16, 2022.
Her duties included receiving applications and application fees from individuals applying to become licensed nail technicians.
Prosecutors said the money orders at issue came from licensure applicants and should have gone through the normal licensing-fee process, not into Severson’s personal account.
The First Altered Money Order Was for $100
According to court documents and statements made in court, Severson altered a $100 money order on or about Jan. 10, 2022.
Prosecutors said the money order had been submitted by a licensure applicant. Severson admitted that she removed the original payee’s name and address, then replaced that information with her mother’s name and address.
She also admitted that her mother did not know the money order had been altered and had not given permission for her name to be used.
Prosecutors Said 19 More Money Orders Were Deposited
As part of her plea agreement, Severson admitted that she fraudulently deposited 19 other money orders submitted by licensure applicants. Those deposits happened between Aug. 21, 2019, and Nov. 23, 2021.
In total, prosecutors said Severson fraudulently deposited 20 money orders worth $1,855.
The Sentence Included Probation and Restitution
Severson pleaded guilty earlier this year to fraud and related activity in connection with identification documents, features, and information.
U.S. District Judge Thomas E. Johnston imposed the sentence. The sentence requires Severson to serve one year of federal probation and repay $1,855.
The case was investigated by IRS Criminal Investigation and the West Virginia Commission on Special Investigations. Assistant U.S. Attorney Jonathan T. Storage prosecuted the case.
Licensing Applicants Should Keep Proof of Every Fee
Applicants who pay a state board, licensing agency, school, or testing office by money order should keep the receipt, tracking number, copy of the completed money order, application confirmation, mailing proof, and any email showing the fee was received.
If a license application stalls, an agency says a fee was never received, or a money order appears to have been cashed by someone other than the intended agency, the applicant should contact the money order issuer and request a copy of the cashed item.
Suspected diversion of licensing fees, altered money orders, or fraud involving a state agency payment should be reported to the agency, local law enforcement, and the money order issuer. If the payment was mailed, a report can also be filed with the U.S. Postal Inspection Service.