Connellsville auto shop owner sentenced in COVID-19 unemployment relief scheme

CONNELLSVILLE, PA — A Connellsville auto shop owner was sentenced in federal court Wednesday for conspiracy to commit mail and bank fraud.

Channel 11 told you in November 2021 of Red Carpet Auto Sales owner Joshua DeWitt and employee Terry Newmeyer. They were accused of helping people fraudulently sign up for government assistance funds, so those individuals could then purchase cars from the shop.

The Department of Justice said they used the fraudulently obtained pandemic benefits for themselves and the dealership by, among other things, accepting them as payment for cars and services.

>> Connellsville auto shop, customers charged in alleged unemployment scheme

In total, investigators say the scheme netted $311,301 in Pennsylvania Pandemic Unemployment Assistance funds and $32,300 from the Paycheck Protection Program.

The judge said the fraud conspiracy happened several times over multiple months.

DeWitt, 38, was sentenced to 10 months in jail followed by two years of supervised release. He was also ordered to pay restitution totaling $60,022.50.

Newmeyer’s sentencing is scheduled for March 5.