Newton County woman pleads guilty to stealing COVID relief funds

Newton County resident Christal Deshai Guthrie has pleaded guilty to violating the Racketeer Influenced and Corrupt Organizations Act (RICO) for her role in a scheme to steal funds meant for COVID relief from the Salvation Army.

After the COVID-19 pandemic, Congress passed the American Rescue Plan Act to assist those affected by the economic downturn. Newton County, like others, received millions in federal funds to provide financial help to residents for rent, mortgage, and utilities through the Salvation Army.

Guthrie, hired by the Salvation Army for the program, abused her position by approving fraudulent applications. She collaborated with friends to submit false tenant and landlord information, receiving kickbacks from the fraudulently obtained funds. Guthrie even used the money to pay off part of her car loan.

The investigation revealed that legitimate Newton County applicants were denied assistance, while their information was used in fraudulent applications. This left vulnerable residents, who were already struggling due to illness or job loss, unable to pay their bills and at risk of losing their homes.

The Covington Police Department and the District Attorney's Office conducted an extensive investigation, leading to Guthrie's indictment in March 2023 on over 70 counts. Despite a non-negotiated guilty plea, the court sentenced Guthrie to 20 years, with the first 8 to be served in prison. Restitution of $152,700.76 was also ordered.

Deputy Chief Assistant District Attorney Jillian Hall, Investigator Josh Shumate, and Investigative Assistant Bret Anderson are actively pursuing other individuals involved in the scheme, as the investigation continues.