Ex-prosecutor pleads guilty in gambling identity theft
A former federal prosecutor in West Virginia has pleaded guilty to five counts of identity theft after using stolen identities to open and profit from online gambling accounts.
Once the deputy chief of the district’s fraud team, Monica Dillon admitted to utilising her victims’ personal information between 2021 and 2023. Court documents reveal that she earned at least $1,000 from three accounts, as reported by media outlets.
According to federal law, sentencing rests on whether the charges are deemed “basic” or “aggravated.” For basic identity theft, there is no mandatory minimum. Meanwhile, aggravated identity theft falls under 18 U.S.C. section 1028A. This requires a mandatory two-year prison term, to run consecutively to any other sentence.
West Virginia legalised online gambling in 2019 through the Lottery Interactive Wagering Act, making it one of the first U.S. states to regulate iGaming. The law permits online casinos and mobile sports betting, but only through operators licenced and tied to the state’s five land-based casinos.
Still, identity theft in the U.S. is on the rise. The Federal Trade Commission (FTC) received over 6.4 million reports in 2024, resulting in costs to Americans of about $47 billion. Credit Card fraud and account takeovers top the trend, as reported by several media outlets. While millennials are the most affected, seniors suffer the most financial loss.
It’s #OlderAmericansMonth! FTC Chairman @AFergusonFTC shares free FTC resources that can help you start a conversation about frauds and scams and how to avoid them. Take a listen and share this in your community: pic.twitter.com/McxGhsHeIV
— FTC (@FTC) May 11, 2026
Court proceedings
U.S. District Judge Kenneth E. Bell, brought in from North Carolina to avoid conflicts of interest, accepted Dillon’s guilty pleas and approved a pretrial diversion agreement. Under the deal, she will serve two years of probation and pay $30,000 in restitution to one victim, identified as “Victim 1.” Though her charges carried a potential maximum of 20 years in prison and a $500,000 fine, the plea spared her incarceration. Dillon must pay the restitution once it is ordered, and it cannot be discharged in bankruptcy.
Career and legal fallout
Dillon’s career crosses over law enforcement and government service. She served as an advisor to the Federal Bureau of Prisons for three years before joining the U.S. Attorney’s Office for the Southern District of West Virginia in 2005. She served there until 2025.
But her descent has been plagued with multiple setbacks. The West Virginia Supreme Court cancelled her law licence via voluntary consent in January 2025. Next came a petition filed in December 2024. Additionally, she filed for bankruptcy in 2022, and her case remains pending. Bankruptcy, however, does not erase fraud-related debts: restitution, fines, and penalties tied to identity theft remain enforceable because they stem from criminal conduct.
Plea agreement terms
Dillon forgoes her right to withdraw if the sentence exceeded expectations, as part of her plea. She admitted that there was a “substantial likelihood” of imprisonment. But it was the agreement that spared her from serving time. Research suggests scandals involving corruption, fraud, or abuse of power erode civic trust, reduce public engagement, and weaken the legitimacy of legal institutions, according to the International Journal of Academic Research World (IJARW).
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