LEBANON, Ore. – A Lebanon man pleaded guilty Thursday to fraudulently converting millions in COVID-19 relief funds intended to help small businesses to personal use.
Andrew Lloyd, 51, was convicted of bank fraud, money laundering and aggravated identity theft.
Officials with the U.S. Attorney’s Office said Lloyd took advantage of economic relief programs administered by the Small Business Administration using CARES Act funds.
“Lying to gain access to economic stimulus funds will be met with justice,” said Weston King, SBA Office of Inspector General Western Region Special Agent in Charge.
According to court documents, the investigation into Lloyd started in October 2020 based on information suggesting he had fraudulently applied for Paycheck Protection Program loans and other assistance at multiple financial institutions.
Beginning in April 2020, Lloyd began submitting loan applications using the identities of relatives and business associates without their permission. Lloyd also falsified information justifying the loan amounts he requested, including claiming to employ up to 64 employees.
In total, six of the nine PPP loan applications Lloyd submitted were accepted, resulting in a payout of more than $3.4 million, the U.S. Attorney’s Office said. One application for an Economic Injury Disaster Loan was also accepted, resulting in $160,000 in payments to Lloyd.
Officials say Lloyd used the money to purchase real estate and invest in securities, which substantially increased in value. More than $11 million has been seized from Lloyd’s accounts.
Lloyd was charged on Jan. 5 and will be sentenced Sept. 9. The attorney’s office is recommending more than five years in prison. As part of a plea agreement, Lloyd will be required to pay $3.6 million in restitution to the U.S. Treasury and will forfeit the $11 million and the properties that he purchased.
Accomplice Russell Schort, 39, of Myrtle Creek was charged as well and is scheduled to plead guilty July 1, officials said.