A previous report on the incident can be watched in the video player above.
COLUMBUS, Ohio (WCMH) – A Westerville woman has pleaded guilty to federal charges of receiving nearly $1.9 million in COVID-19 relief funds after falsely claiming a connection to an Ohio pizza company.
Lorie A. Schaefer, 63, pleaded guilty this week to one count each of wire fraud and money laundering, facing a possible 30 years in prison.
According to court records, in May 2021, Schaefer applied for a Paycheck Protection Program loan, falsely claiming she was the operator of a chain of Flying Pizza restaurants. In the application, she claimed the business had a gross income in 2019 of $16,270,000, employed 98 people, monthly owner salary of $8,333, which was the maximum allowed on the application, and an average monthly payroll of $749,000.
Kenneth L. Parker, United States attorney for the Southern District of Ohio, said Schaefer also used fake documents in her application, including tax records and a bank statement. Parker said Schaefer modified a real bank statement to reflect the falsified payroll expenses. According to Parker, one altered bank statement showed a deposit of $200 was changed to a deposit of $470,232, and a Wendy’s purchase of $7.69 was changed to a $210,000 transfer to “ADP Payroll.”
Bank records show Schaefer used the funds for personal expenses, like nearly $26,000 on liposuction, a $10,000 check for a “newborn baby gift,” and more than $900,000 to purchase and renovate a condominium in Westerville. Parker said evidence also suggests Schaefer used the funds to purchase cars in Ohio and property in Australia.
The wire fraud charge carries a maximum sentence of 20 years in prison, while the money laundering could result in a maximum of 10 years in prison. In addition to the possible prison term, Schaefer must pay restitution of at least $2,894,966 and forfeit $2,094,133 in cash and property, including the Westerville condo.
Parker’s office said Schaefer also took part in another fraudulent PPP loan scheme for $980,000, which is part of her ordered restitution.
The U.S. Attorney’s Office did not say when Schaefer would be sentenced.
