(The Center Square) – Two central Ohioans face charges of receiving nearly $3 million in COVID-19 relief funds.
U.S. Attorney for the Southern District of Ohio Kenneth Parker said both Lorie Schaefer, of Westerville, and Latisha Holloway, of Reynoldsburg, collected Paycheck Protection Program loans from the federal government for employees that didn’t exist.
According to prosecutors, Holloway claimed to own a business with 76 employees and $4.9 million in income, while Schaefer said her pizza business began in 2021 and had 98 employees.
The government says Schaefer opened new bank accounts in December 2020 before registering a fake business name with the state in March 2021. She is accused of claiming affiliation with the Flying Pizza restaurants in Dayton, Centerville and Fairborn with 98 employees, saying it began in 2021 when the original Flying Pizza was established in 1984.
“As Attorney General Merrick Garland recently made clear, while the COVID-19 public health emergency may have ended, our work to identify and hold accountable those who stole pandemic relief funds is far from over,” Parker said in a news release. “Working alongside our law enforcement partners, we will continue to prosecute the individuals who engaged in these illegal activities.”
Schaefer received nearly $1.9 million in a PPP loan, and Parker said people at the business said the restaurant could not justify such a large loan.
The government says bank records show Schaefer spent nearly $26,000 on liposuction, $10,000 for a newborn baby gift and more than $900,000 to buy and renovate a condo in Westerville. Prosecutors also say she bought vehicles in Ohio and property in Australia for personal use.
Also, prosecutors say Schaefer used someone else’s Social Security number to receive another $20,800 in PPP funds.
Schaefer is accused of helping Holloway get a loan for more than $980,000. Prosecutors say Holloway claimed to own Jaguar Logistics LLC with 76 employees and a total gross income of $4.9 million. They say she wired Schaefer $180,000 after receiving her loan.
The two also are accused of collecting unemployment benefits after receiving the federal relief money.
