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WHEELING - Former West Virginia House of Delegates candidate Dalton Haas admitted in federal court Wednesday he lied on federal applications when seeking COVID relief dollars, and he acknowledged he received a $20,000 advance on money from the government as a result.
Haas agreed he was guilty of wire fraud and entered a plea agreement before U.S. Magistrate James Mazzone. Haas appeared in court with his attorney, Donald Tennant of Wheeling.
Mazzone asked Haas to tell him in his words what he had done and why he was entering a guilty plea.
Haas replied, "I lied to the SBA (U.S. Small Business Administration)."
He told the judge he provided the SBA misleading numbers regarding revenues he reported for both the Lebanese Restaurant and Bakery and the West Virginia Hockey League when applying for Economic Injury Disaster Loans. He also admitted to improperly receiving in his bank accounts $20,000 in advance money from the SBA.
He pleaded guilty to one felony count of wire fraud, which carries with it a punishment of not more than 20 years imprisonment, and a fine of not more than $250,000.
Haas also will have to pay the federal court a mandatory assessment of $100 within the next 40 days.
As part of the plea agreement, Haas agreed to forfeit $20,000 in personal property to the SBA, and to pay restitution "to the fullest extent possible" before he is sentenced.
Mazzone took the plea, and the case now moves on to a pre-sentence investigation. He will be sentenced by U.S. Judge John Preston Bailey at a time to be later scheduled.
In early December, Haas, 27, of Wheeling was charged with seven counts of wire fraud, as well as five counts of making false statements to the SBA regarding businesses he purportedly owned.
The original complaint alleged that Haas submitted separate fraudulent applications for Economic Injury Disaster Loans seeking dollars for the Lebanese Restaurant and Bakery, the West Virginia Hockey League, the Wheeling Wine Festival, and the Wheeling Hockey Association and for advancements of the money on three of those applications.
He was alleged to have falsely told the SBA when applying that the Lebanese Restaurant and Bakery had generated revenue a year prior to the pandemic and 25 employees "when he knew the business was not in operation," according to the complaint.
In court Wednesday, Assistant U.S. Attorney Jennifer Conklin explained the applications were denied, but not before Haas had received $10,000 advances each from the SBA for the Lebanese Restaurant and Bakery and the West Virginia Hockey League.
She added an investigation into the spending of the dollars by Haas showed the money "appeared to be for his personal use" and not to pay employees.