COLUMBUS, Ohio — Two central Ohio women were indicted by a grand jury for crimes related to a $2.8 million COVID-19-relief fraud scheme, according to U.S. Attorney Kenneth Parker’s office.
Lorie Schaefer, 62, of Westerville, allegedly received nearly $1.9 million in COVID-relief funds by fraudulently claiming an affiliation with an Ohio pizza company.
The indictment says Schaefer opened new bank accounts in December 2020 prior to registering a fictitious business name with the State of Ohio in March 2021.
She allegedly claimed affiliation with the Flying Pizza restaurants in Dayton, Centerville and Fairborn. When notified that a Paycheck Protection Program (PPP) loan for nearly $1.9 million had been filed in the shop’s name, individuals at the family-owned business said their restaurants could not justify such a large loan.
According to Parker’s office, Schaefer claimed to have 98 employees and allegedly submitted altered bank records as part of her application. She also claimed not to be under indictment despite having pending theft charges in Meigs County.
Schaefer allegedly attached multiple fraudulent documents to her PPP application, including a bank statement, tax records and a letter from the IRS.
Bank records show that Schaefer used the funds for personal expenses like liposuction, a “newborn baby gift” and a condominium. Parker’s office says she also used money to purchase vehicles in Ohio and property in Australia.
She allegedly assisted 42-year-old Latisha Holloway, of Reynoldsburg, in fraudulently receiving more than $980,000 in PPP loans.
Parker's office says Holloway allegedly claimed to own a business called Jaguar Logistics, LLC. She stated on her loan application that she has 76 employees and a total gross income of $4.9 million.
Records indicate that Holloway wired Schaefer $180,000 after receiving her own loan money. Holloway also allegedly attached fraudulent documents to her PPP loan, including a bank statement and tax records.
Both women then allegedly collected unemployment benefits after receiving federal COVID-relief funds.
Parker’s office also said that Schaefer used another individual’s Social Security Number to apply and receive an additional $20,800 in PPP funds for “LS Associates.”
Each woman is charged with two counts of wire fraud and one count of money laundering. They were arrested in August 2023.