COLUMBUS, Ohio — Two Central Ohio women face federal charges related to fraudulently obtaining more than $2.8 million in COVID-19 relief funds from the Paycheck Protection Program (PPP).
Lorie A. Schaefer, 62, of Westerville, is accused of unlawfully obtaining nearly $1.9 million in COVID-19 relief funds by falsely claiming an association with an Ohio pizza company, according to a federal grand jury indictment announced Thursday.
The indictment alleges that Schaefer opened new bank accounts in December 2020 before registering a fictitious business name with the State of Ohio in March 2021. Prosecutors say she falsely claimed an affiliation with the Flying Pizza restaurants in Dayton, Centerville, and Fairborn. However, when informed of a PPP loan filed in the name of Flying Pizza, individuals at the family-owned business denied any knowledge of such a loan.
Schaefer purportedly asserted having 98 employees and submitted altered bank records along with her application. She claimed the business was established in March 2021, despite the original Flying Pizza dating back to 1984. Additionally, she denied being under indictment despite facing pending theft charges in Meigs County. Allegedly, she submitted multiple fraudulent documents, including a bank statement, tax records, and an IRS letter.
Bank records reportedly show Schaefer misused PPP funds for personal expenses, including nearly $26,000 on liposuction, a $10,000 check for a “newborn baby gift,” and over $900,000 for a condominium purchase and renovation in Westerville. She also allegedly made purchases at various retailers and restaurants. Evidence suggests she used the fraud proceeds for personal acquisitions, including vehicles in Ohio and property in Australia.
Schaefer is accused of aiding co-defendant Latisha C. Holloway, 42, of Reynoldsburg, in fraudulently obtaining over $980,000 in PPP loans.
Holloway purportedly claimed ownership of Jaguar Logistics, LLC, stating she had 76 employees and a total gross income of $4.9 million. Prosecutors allege she wired $180,000 to Schaefer after receiving her own loan funds. Holloway is said to have attached fraudulent documents to her PPP loan application, including a bank statement and tax records.
Both defendants allegedly collected unemployment benefits after receiving federal COVID-19 relief funds.
Additionally, Schaefer allegedly used another individual’s Social Security number to apply for and receive an extra $20,800 in PPP funds for “LS Associates,” a corporation she established.
The indictment charges each woman with two counts of wire fraud and one count of money laundering. Wire fraud carries a maximum penalty of 20 years in prison, while money laundering carries up to 10 years.
Schaefer and Holloway were arrested in August 2023 and initially charged by criminal complaint.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the case, which was investigated by the U.S. Department of Transportation Office of Inspector General and the Federal Bureau of Investigation (FBI), Cincinnati Division. Assistant United States Attorney David J. Twombly is prosecuting the case.
An indictment contains allegations, and defendants are presumed innocent unless proven guilty in court.
