Central Ohio woman sentenced to more than 5 years in prison for $2.8 million pandemic relief fraud scheme

Summary

A press release from USAO - Ohio, Southern published 2025-06-17, "Central Ohio woman sentenced to more than 5 years in prison for $2.8 million pandemic relief fraud scheme". It announces a sentence of 70 months in prison for Lorie A. Schaefer, 63, imposed by Judge Edmund A. Sargus, Jr. The release states, according to court documents, that Schaefer claimed affiliation with the Flying Pizza restaurants to obtain a PPP loan for nearly $1.9 million, claimed to have 98 employees and submitted altered bank records. It states that Schaefer also assisted a co-defendant in receiving more than $980,000 in pandemic relief loans, and that bank records indicate more than $900,000 went to buy and renovate a home in Westerville. It states that Schaefer pleaded guilty in July 2024 and twice attempted to withdraw the plea.

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COLUMBUS, Ohio – A Westerville woman who claimed affiliation with Dayton-area pizza restaurants to obtain nearly $1.9 million in COVD-19 relief funds was sentenced in U.S. District Court today to 70 months in prison.
Lorie A. Schaefer, 63, also assisted a co-defendant in fraudulently receiving more than $980,000 pandemic relief loans in exchange for payment, causing a total of $2.8 million in fraud.
According to court documents, Schaefer opened new bank accounts in December 2020 prior to registering a fictitious business name with the State of Ohio in March 2021.
Schaefer fraudulently claimed affiliation with the Flying Pizza restaurants in Dayton, Centerville and Fairborn. When notified that a Paycheck Protection Plan (PPP) loan for nearly $1.9 million had been filed in the name of Flying Pizza, individuals at the family-owned business said their restaurants could not justify such a large loan.
Schaefer claimed to have 98 employees and submitted altered bank records as part of her application. Schaefer also claimed the business was established in March 2021, even though the original Flying Pizza was established in 1984. Additionally, she claimed not to be under indictment despite having pending theft charges in Meigs County. Schaefer attached multiple fraudulent documents to her PPP application, including a bank statement, tax records, and a letter from the IRS.
Bank records indicate Schaefer improperly used PPP funds for personal expenses, for example, nearly $26,000 on liposuction, a $10,000 check for a “newborn baby gift,” and more than $900,000 to purchase and renovate a home in Westerville. Schaefer also made purchases at Wayfair, Lamps Plus, Kroger, KFC, Burger King, Arby’s, McDonald’s and Olive Garden. Evidence also suggests Schaefer used the fraud proceeds to purchase vehicles in Ohio and property in Australia.
After being charged in this case, Schaefer committed new offenses and violated her pre-trial release multiple times, leading to the revocation of her bond.
She pleaded guilty in July 2024 and twice attempted to withdraw her guilty plea.
Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Anthony Licari, Special Agent in Charge, Department of Transportation Office of Inspector General, Midwestern Region; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the sentence imposed today by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney David J. Twombly is representing the United States in this case.
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