COLUMBUS, OH – Two women from Central Ohio, Lorie A. Schaefer, 62, of Westerville, and Latisha C. Holloway, 42, of Reynoldsburg, face federal charges for their alleged involvement in a scheme to fraudulently obtain over $2.8 million in Paycheck Protection Program (PPP) loans. The charges come as a result of an investigation into the misuse of funds intended to support businesses during the COVID-19 pandemic.
Schaefer is accused of fraudulently obtaining nearly $1.9 million by falsely claiming an affiliation with an established Ohio pizza company, Flying Pizza. Despite the business’s assertion that such a large loan was unjustifiable, Schaefer allegedly presented altered bank records and fraudulent documents, including tax records and a letter from the IRS, to support her application. She purportedly claimed 98 employees and ownership of the business since March 2021, a significant discrepancy from the original business’s establishment in 1984.
Bank records reveal Schaefer’s extravagant use of the PPP funds for personal gain, including nearly $26,000 on liposuction, a $10,000 “newborn baby gift,” and over $900,000 on a condominium purchase and renovation in Westerville. Her expenditures also included high-value purchases and investments in property and vehicles, both domestically and abroad.
Holloway, allegedly aided by Schaefer, secured over $980,000 in PPP loans through fraudulent claims related to her business, Jaguar Logistics, LLC. She reported having 76 employees and a gross income of $4.9 million. Following her receipt of the PPP loan, Holloway reportedly transferred $180,000 to Schaefer, further implicating both in the fraudulent scheme.
The indictment underscores the serious misuse of federal aid programs and the government’s commitment to prosecuting those who exploit these resources for personal benefit.