Two men are accused of converting for their personal use more than $2.2 million in loans intended to help small businesses during the coronavirus pandemic.
Andrew Aaron Lloyd, 50, of Lebanon and Russell A. Schort, 38, of Myrtle Creek are charged with wire fraud, bank fraud and money laundering in federal court in Eugene.
The FBI began investigating the two after receiving information that they allegedly obtained Paycheck Protection Program loans through fraud. The loans were authorized by the federal Coronavirus Aid, Relief and Economic Security Act, known as CARES.
Between April 7 and May 8, financial records showed the two applied for and received at least three loan payments using three different entities, totaling more than $2.2 million, according to a criminal complaint filed in court.
Lloyd is accused of transferring at least $1.8 million from the loans to a personal online brokerage account and buying various securities, the complaint says. His investments substantially increased in value over several months and became worth more than $10 million at the time of their seizure, according to prosecutors.
FBI agents arrested Lloyd on Thursday. He’s scheduled to appear in U.S. District Court in Eugene on Friday. Schort was arrested on Wednesday.
The FBI, with help from the IRS and the Small Business Association, investigated the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report them to the U.S. Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
–The Oregonian/OregonLive
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