A Westerville woman who received nearly $2 million in COVID relief money that she used to buy a property in Australia and to pay for cosmetic surgery will now spend time in federal prison.
Lorie Schaefer, 63, previously pleaded guilty to wire fraud and money laundering in U.S. District Court. On June 17, Judge Edmund Sargus sentenced Schaefer to 70 months, or five years and 10 months in prison.
According to court records, in December 2020, Schaefer created bank accounts she used to help register a fake business with the state in March 2021. She then claimed to be connected with Flying Pizza restaurants in the Dayton area, a family-owned business.
Schaefer applied for Paycheck Protection Plan loans worth nearly $1.9 million in the pizza company’s name, court records say. She filed paperwork saying she had 98 employees and provided altered bank documents to back up her loan applications, court records say.
Schaefer reported on the loan paperwork that she earned $8,333 a month, the maximum amount allowed on the application, and had a 2019 gross income of more than $16 million, according to court records.
However, Schaefer included information that investigators were able to confirm was inaccurate, including the wrong creation date for the company. Schaefer also gave information that omitted pending theft charges in Meigs County, court records say.
Schaefer used the PPP loan money for personal expenses and purchases, including liposuction, vehicles and property in Australia, according to court records. Other expenses included more than $900,000 to buy and renovate a Westerville home and a $10,000 check for a baby gift.
In addition to the false loans, Schaefer also helped another person receive more than $980,000 in fraudulent loans in exchange for receiving some of the money, court records say.
“Her theft cynically exploited a time of national tragedy, taking advantage of relaxed fraud-prevention controls designed to get money quickly to people in need,” the U.S. Attorney’s office wrote in court records. “She didn’t merely bend the truth or skim a little off the top; she lied grandly, inventing dozens of fake employees to maximize her theft.”
Court records say Schaefer was initially released while her case was pending, but after repeated violations of the conditions of that release and alleged new crimes, authorities took her back into custody. One of those violations included selling property Schaefer knew she would have to forfeit if she was convicted — including participating in calls related to the sale from jail, according to court records.
The U.S. Attorney’s office said Schaefer tried to take back her guilty plea two times before her sentencing. As part of her sentence, Schaefer will have to forfeit more than $2.8 million. She is also required to turn over the property she purchased with the money.
Reporter Bethany Bruner can be reached at bbruner@gannett.com or on Bluesky at @bethanybruner.dispatch.com.
This article originally appeared on The Columbus Dispatch: Ohio woman used COVID relief money on liposuction, real estate. Now she’s going to prison
Reporting by Bethany Bruner, Columbus Dispatch / The Columbus Dispatch
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