Indictment — United States v. Raymond Joe Hilderbrand and Jennifer Lynn Hilderbrand, E.D. Wash.

Summary

A grand jury indictment filed October 17, 2023 as ECF No. 1 in United States v. Raymond Joe Hilderbrand and Jennifer Lynn Hilderbrand, Case No. 2:23-CR-114-TOR, in the U.S. District Court for the Eastern District of Washington, charging wire fraud under 18 U.S.C. § 1343 (Counts 1 - 6) and false claims (Counts 7 & 8), with forfeiture allegations. It alleges that after the SBA declined a $301,000.00 EIDL request for Powerline Enterprise LLC, Raymond Joe Hilderbrand obtained an EIDL for Hilderbrand Auto Service and the defendants moved the funds to Powerline. It states the SBA disbursed $319,900.00 on or about February 15, 2022, that $311,000.00 was withdrawn that day, and that the money funded a $295,000.00 property purchase in Spokane. The loan was later increased to $363,000.00, and the forfeiture allegation seeks a money judgment in that amount.

Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Text recognized from a scanned document; may contain errors. Page 13 of 13 is not shown because the text could not be recognized reliably.

Oo

Case 2:23-cr-00114-TOR ECF No. 1

Vanessa R. Waldref

United States Attorney

Eastern District of Washington
Frieda K. Zimmerman

Jeremy J. Kelley

Assistant United States Attorneys
Post Office Box 1494

Spokane, WA 99210-1494
Telephone: (509) 353-2767

filed 10/17/23. PagelD.l Page1of13

’ FILED IN THE
‘S. DISTRICT COURT
EASTERN DISTRICT OF WASHINGTON

OCT 17 2023

SEAN F. McAVOY, CLERK

SPOKANE, WASHINGTON =

UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF WASHINGTON

UNITED STATES OF AMERICA,
Plaintiff,

Vi

RAYMOND JOE HILDERBRAND,
JENNIFER LYNN HILDERBRAND,

Defendants.

The Grand Jury charges:

2:23-CR-114-TOR

INDICTMENT
Vio: 18 U.S.C. § 1343
Wire Fraud
(Counts | - 6)

18 U.S.C. § 287,
18 U.S.C. § 2
False, Fictitious, or Fraudulent

Claims
(Counts 7 & 8)

18 U.S.C. § 981, 28 U.S.C. §
2461
Forfeiture Allegations

GENERAL ALLEGATIONS

1. At all times relevant to this Indictment, Defendants RAYMOND JOE

HILDERBRAND and JENNIFER LYNN HILDERBRAND were residents of

Spokane County, Washington.

INDICTMENT - 1
on ND nA BW NYO KB CO HO DN DH A FP W NH KH CO

Case 2:23-cr-00114-TOR ECFNo.1 filed 10/17/23. PagelD.2 Page2of13

2. The Coronavirus Aid, Relief, and Economic Security Act (““CARES”
Act) was a federal law enacted on March 27, 2020, designed to provide emergency
financial assistance to the millions of Americans who were suffering the economic
effects caused by the COVID-19 pandemic. One source of relief provided by the
CARES Act was the authorization of the Economic Injury Disaster Loan (““EIDL”)
program. EIDL is a Small Business Administration (“SBA”) program that provides
low-interest funding to small businesses, renters, and homeowners affected by
declared disasters.

3. In order to obtain an EIDL, a qualifying business must submit an
application to the SBA and provide information about its operations, such as the
number of employees, gross revenues for the 12-month period preceding the
disaster, and cost of goods sold in the 12-month period preceding the disaster. In
the case of EIDLs for COVID-19 relief, the 12-month period was the year preceding
January 31, 2020. The applicant must also certify that all the information in the
application is true and correct, and agree in the required Loan Authorization and
Agreement that the EIDL funds will be used solely as working capital to alleviate
economic injury caused by disaster.

4. | The amount of an EIDL, if the application is approved, is determined
based, in part, on the information provided in the application about employment,
revenue, and cost of goods, as set forth above. Any funds issued under an EIDL are
issued directly by the SBA. EIDL funds shall be used as working capital, such as
payroll expenses, sick leave, production costs, and ordinary business obligations,
such as debts, rent, and mortgage payments. If the applicant also obtains a loan
under the Paycheck Protection Program, the EIDL funds cannot be used for the same

purpose as the Paycheck Protection Program funds.

INDICTMENT -— 2
on AN BW HH KH OO DOH DA Hn FP WW NY KS OS

Case 2:23-cr-00114-TOR ECFNo.1 filed 10/17/23. PagelD.3 Page3of13

5. EIDL applications are received in cloud-based platforms. The location
of the server through which the EIDL application is submitted is based on the date
the application was processed by SBA and the application number. During the time
period relevant to this Indictment, all EIDL applications and supporting documents
were received in a Microsoft cloud-based platform using a Rapid Finance
application, through SBA servers located in Des Moines, Iowa.

The Scheme

6. The allegations in paragraphs 1 through 5 of this Indictment are
incorporated as though realleged herein.

7. Beginning no later than on or about April 6, 2021, and continuing
through at least May 17, 2022, in the Eastern District of Washington and elsewhere,
Defendant’ RAYMOND JOE HILDERBRAND and JENNIFER LYNN
HILDERBRAND devised and intended to devise a scheme to defraud the SBA, and
to obtain money and property from the SBA by means of materially false and
fraudulent pretenses, representations, and promises.

8. Specifically, Defendant RAYMOND JOE HILDERBRAND applied
for and received EIDL funding on behalf of his company, Hilderbrand Auto Service,
with the intent to defraud, steal, and convert the proceeds of the EIDL loan for
Defendant RAYMOND JOE HILDERBRAND and JENNIFER LYNN
HILDERBRAND’s use in Powerline Enterprise LLC, a purported business that was
not eligible to receive EJIDL funding and for which the SBA denied EIDL funding
when Defendant JENNIFER LYNN HILDERBRAND applied for EIDL funding on
its behalf. Defendants then applied for and received EIDL funding for Hilderbrand

Auto Service without any intent to use the proceeds thereof for any authorized

purpose.

INDICTMENT - 3
Case 2:23-cr-00114-TOR ECFNo.1 = filed 10/17/23. PagelD.4 Page4of13

Manner and Means

It was part of this scheme that:

9. On or about April 6, 2021, Defendant RAYMOND JOE
HILDERBRAND began the process of submitting materials to the SBA requesting
EIDL funding through EIDL Application No. 3318196046, under the name of his
business, Hilderbrand Auto Service (hereinafter “Hilderbrand Auto”).

10. On or about September 17, 2021, Defendant JENNIFER LYNN
HILDERBRAND submitted materials to the SBA requesting EIDL funding through
EIDL Application No. 3323723010 under the name of Powerline Enterprise LLC
(hereinafter “Powerline”).

11. In EIDL Application No. 3323723010, Defendant JENNIFER LYNN
HILDERBRAND falsely and fraudulently represented that Powerline had an actual
2019 gross revenue of $181,500.00, an actual 2020 gross revenue of $195,000.00,
and an actual 2020 cost of goods sold of $34,568.00. Defendant JENNIFER LYNN
HILDERBRAND indicated that the Employer ID Number (“EIN”) for Powerline
was 83-2217972.

12. These representations were materially false and fraudulent. In fact,
Powerline was not actively engaged in any business as of January 31, 2020,
Powerline did not have the reported revenue or costs of goods sold, and therefore
was not eligible for any EIDL funding.

13. Based on the false information she provided, Defendant JENNIFER
LYNN HILDERBRAND requested $301,000.00 in EIDL funding on behalf of
Powerline. On or about September 20, 2021, the SBA issued a letter declining
Defendant’s funding request.

INDICTMENT — 4
Case 2:23-cr-00114-TOR ECFNo.1 filed 10/17/23. PagelD.5 Page5of13

14. On or about January 31, 2022, Defendant RAYMOND JOE
HILDERBRAND finalized his submission of Application No. 3318196046 to the
SBA in the name of Hilderbrand Auto.

15. On or about February 3, 2022, Defendant RAYMOND JOE
HILDERBRAND electronically signed a Loan Authorization and Agreement for
Application No. 3318196046, representing and promising that he would use the
proceeds of the loan solely as working capital to alleviate economic injury caused
by the COVID-19 emergency. Defendant agreed to be bound by the stated terms and
conditions during the term of the loan. Defendant further certified under penalty of
perjury that he was authorized to apply for and obtain a disaster loan on behalf of
the Borrower in connection with the effects of the COVID-19 emergency. A
properly signed, truthful, and accurate Loan Authorization and Agreement is
required prior to any disbursement of an EIDL loan.

16. Pursuant to the Loan Authorization and Agreement, a third-party UCC
handling charge of $100 was to be deducted from the loan amount of $320,000.00
prior to disbursement.

17. On or about February 12, 2022, relying on the false representations,
statements, and promises that Defendant RAYMOND JOE HILDERBRAND made
in EIDL Loan Application No. 3318196046 and the accompanying Loan
Authorization and Agreement, the SBA approved funding for the requested EIDL.

18. On or about February 15, 2022, the SBA disbursed $319,900.00 in
EIDL funding to the Hilderbrand Auto account at Banner Bank ending in 2814. Prior
to the wire transfer, the account contained less than $300.00.

19. That same day, Defendant RAYMOND JOE HILDERBRAND made a
checking withdrawal of $311,000.00, with $200,000.00 payable to Powerline

INDICTMENT — 5
Enterprise, LLC, and $111,000.00 payable to Defendant JENNIFER LYNN
HILDERBRAND.

20. On or about February 23, 2022, Defendant JENNIFER LYNN
HILDERBRAND used these checks to open a bank account ending in 6775 with
Global Credit Union in the name of Powerline Enterprise LLC. Defendant
JENNIFER LYNN HILDERBRAND identified herself on account opening
documents as the Owner/Sole Member of Powerline.

21. Onor about February 22, 2022, a realtor contacted First American Title
regarding an already-accepted cash offer for the sale of 10423 E. Trent in Spokane,
WA (hereinafter “the property”).

22. Onor about February 28, 2022, the realtor provided a signed purchase
and sale agreement for the property, with Powerline and Defendant JENNIFER
LYNN HILDERBRAND as the listed buyer. The listed purchase price was
$295,000.00.

23. On or about March 16, 2022, Defendant JENNIFER LYNN
HILDERBRAND sent a wire transfer from the Powerline Global Credit Union
Account ending in 6775 to First American Title in the amount of $297,791.24 for
purchase of the property.

24. On or about March 18, 2022, Defendant JENNIFER LYNN
HILDERBRAND withdrew the remaining funds in the account and closed the
Powerline Enterprise LLC Global Credit Union Account ending in 6775.

25. On or about May 4, 2022, Defendant RAYMOND JOE
HILDERBRAND submitted a request for modification of EIDL Application No.
3318196046.

26. On or about May 11, 2022, Defendant RAYMOND JOE
HILDERBRAND electronically signed an Amended Loan Authorization and

INDICTMENT - 6
Case 2:23-cr-00114-TOR ECFNo.1 _— filed 10/17/23. PagelD.7 Page7of13

Agreement for Application No. 3318196046, agreeing, representing, and promising
that he would use the proceeds of the loan solely as working capital to alleviate
economic injury. Defendant RAYMOND JOE HILDERBRAND agreed to be bound
by the stated terms and conditions during the term of the loan. Defendant
RAYMOND JOE HILDERBRAND further certified under penalty of perjury that
he was authorized to apply for and obtain a disaster loan on behalf of the Borrower
in connection with the effects of the COVID-19 emergency. A properly signed,
truthful, and accurate Loan Authorization and Agreement is required prior to any
disbursement of an EIDL loan.

27. On or about May 11, 2022, the SBA issued a letter to Defendant
RAYMOND JOE HILDERBRAND informing him that the modification request
had been received, and that the loan amount had been increased from $320,000.00
to $363,000.00.

28. On or about May 17, 2022, the SBA disbursed the additional
$43,000.00 in EIDL funding to the Hilderbrand Auto Service account at Banner
Bank ending in 2814.

29. After that disbursement, Defendants DRAYMOND JOE
HILDERBRAND made a checking withdrawal of $35,006.00, and issued a check
for $35,000.00 from Hilderbrand Auto written to Powerline Enterprise LLC. On or
about May 17, 2022, the check was subsequently deposited into the Powerline STCU
Bank Account ending in 2748, for which Defendant JENNIFER LYNN
HILDERBRAND is the only authorized signatory.

30. On Application No. 3318196046 and the subsequent modification
request, Defendant RAYMOND JOE HILDERBRAND certified under penalty of
perjury that the information in the application was true and accurate, subject to

criminal penalties for knowingly making false statements. Further, in the Loan

INDICTMENT — 7
Case 2:23-cr-00114-TOR ECFNo.1 = filed 10/17/23. PagelD.8 Page 8of13

Authorization and Agreement for this EIDL loan as well as the Amended Loan
Authorization and Agreement, Defendant RAYMOND JOE HILDERBRAND
agreed to be bound by the terms and conditions in the agreement, including the
condition that he would use all the proceeds of the EIDL solely as working capital
to alleviate economic injury.

31. The representation made by Defendant RAYMOND JOE
HILDERBRAND in the Loan Authorization and Agreement required for
disbursement of EIDL Application No. 3318196046 that he would use the proceeds
of the loan solely as working capital on behalf of Hilderbrand Auto to alleviate
economic injury was materially false, and Defendant RAYMOND JOE
HILDERBRAND knew it was false at the time he made this representation. Instead
of using the EIDL funds for a permissible purpose, Defendants RAYMOND JOE
HILDERBRAND and JENNIFER LYNN HILDERBRAND used the EIDL funds
for the benefit of an LLC, Powerline Enterprise LLC, which had previously applied
for EIDL funding and been denied, and which was not eligible for any EIDL funding.

32. A realtor made contact with First American Title indicating a planned
cash purchase of the property soon after the SBA distributed through wire transfer
the EIDL funds into Hilderbrand Auto Service bank account. Further, Defendants
immediately acted to move $311,000.00 of the $319,900.00 distributed by the SBA
to Hilderbrand Auto Service into a recently-set up Powerline business account.
Defendant JENNIFER LYNN HILDERBRAND, on behalf of Powerline Enterprise
LLC, then used the transferred funds to enter into a purchase and sale agreement for
the property. Accordingly, this is a misappropriation of EIDL loan funds, as
Defendant RAYMOND JOE HILDERBRAND agreed he would use the EIDL
proceeds solely as working capital for Hilderbrand Auto, and the purchase of real

property in the name of another business is not a business expense for Hilderbrand

INDICTMENT -— 8
Oo CO TDN NA fF WH NY =

Case 2:23-cr-00114-TOR ECFNo.1 filed 10/17/23. PagelD.9 Page9of13

Auto or any other qualifying working capital needed to alleviate economic injury
and therefore is not a permissible use of EIDL funds.
Counts 1 -6
18 U.S.C. § 1343

33. The allegations in paragraphs 1 through 32 of this Indictment are
incorporated as though realleged herein.

34. On or about each of the dates set forth below, in the Eastern District of
Washington and elsewhere, Defendants RAYMOND JOE HILDERBRAND and
JENNIFER LYNN HILDERBRAND, for the purpose of executing the scheme
described above, caused to be transmitted by means of wire communication in
interstate commerce the signals and sounds described below for each count, each

transmission constituting a separate count:

Count | Date Description
1 September EIDL Application No. 3323723010 in the name of
17, 2021 Powerline Enterprise LLC, electronically submitted from

the Eastern District of Washington to SBA servers
located in Des Moines, Iowa.

2 February 3, | Loan Authorization and Agreement in support of EIDL
2022. Application No. 3318196046 in the name of Hilderbrand
Auto Service for EIDL loan of $320,000.00,
electronically submitted from the Eastern District of
Washington to SBA servers located in Des Moines,

Iowa.
3 February 15, | Electronic Funds Transfer Payment from Financial
2022 Management Service servers in Sterling, Virginia, to

Raymond Joe Hilderbrand DBA Hilderbrand Auto’s
Banner Bank Account ending in 2814 in Spokane,
Washington, in the amount of $319,900.00 for EIDL
Application No. 3318196046.

4 March 16, Interstate wire transfer from the Powerline Global Credit
2022 Union Account ending in 6775 in Spokane, WA to a

INDICTMENT -— 9
First American Title Account located in Santa Ana, CA,
in the amount of $297,791.24.

5 May 11, 2022 | Amended Loan Authorization and Agreement in support
of EIDL Application No. 3318196046 Modification 1 in
the name of Hilderbrand Auto Service for EIDL loan of
$363,000.00, electronically submitted from the Eastern
District of Washington to SBA servers located in Des
Moines, Iowa.

6 May 17, 2022 | Electronic Funds Transfer Payment from Financial
Management Service servers in Sterling, Virginia, to
Raymond Joe Hilderbrand DBA Hilderbrand Auto’s
Banner Bank Account ending in 2814 in Spokane,
Washington, in the amount of $43,000.00 for
Modification 1 to EIDL Application No. 3318196046.
All in violation of 18 U.S.C. § 1343.

Counts 7 & 8
18 U.S.C. § 287

35. The allegations in paragraphs 1 through 34 of this Indictment are
incorporated as though realleged herein.

36. Onor about each of the dates set forth below, in the Eastern District of
Washington and elsewhere, the Defendants, RAYMOND JOE HILDERBRAND
and JENNIFER LYNN HILDERBRAND, represented to the United States Small
Business Administration that the EIDL funds would be used for an authorized
purpose, knowing such representation was false and fraudulent, and knowing that he
planned to use the funds for an unauthorized purpose, described below for each

count, each transmission constituting a separate count:

Count | Defendant Date Description
7 JENNIFER September | EIDL Application No. 3323723010 in the
LYNN 17,2021 | name of Powerline Enterprise LLC,
HILDERBRAND electronically submitted from the Eastern
District of Washington.

INDICTMENT — 10
Case 2:23-cr-00114-TOR ECF No. 1

filed 10/17/23. PagelD.11 Page11of13

8 RAYMOND JOE | February
HILDERBRAND | 3, 2022

Loan Authorization and Agreement in
support of EIDL Application No.
3318196046 in the name of Hilderbrand
Auto Service for an EIDL loan of
$320,000.00.

All in violation of 18 U.S.C. § 287, and aided and abetted the same, in violation of

18 U.S.C. § 2.

NOTICE OF FORFEITURE ALLEGATIONS

The allegations contained in this Indictment are hereby realleged and

incorporated herein by this reference for the purpose of alleging forfeitures.
Pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), upon
conviction of an offense(s) in violation of 18 U.S.C. § 1343, as alleged in Counts 1
through 6 of this Indictment, Defendants RAYMOND JOE HILDERBRAND and
JENNIFER LYNN HILDERBRAND shall forfeit to the United States any property,

real or personal, which constitutes or is derived from proceeds traceable to the

offense. The property to be forfeited includes, but is not limited to, the following:

REAL PROPERTY

The real property being forfeited is commonly known as 10423 East Trent

Avenue, Spokane Valley, Washington, described as follows:

All that lot or parcel of land, together with its buildings,
appurtenances, improvements, fixtures, attachments and easements,
known as 10423 East Trent Avenue, Spokane Valley, Washington,

legally described as follows:

THAT PART OF LOT 14, LYING NORTHEASTERLY OF A LINE
DRAWN PARALLEL WITH AND DISTANT 64 FEET
SOUTHWESTERLY OF SAID NORTHEASTERLY LINE IN
BLOCK 9, GRANDVIEW ACRES, ACCORDING TO PLAT
RECORDED IN VOLUME "K" OF PLATS, PAGE 12, IN THE
TOWN OF MILLWOOD, SPOKANE COUNTY, WASHINGTON.

INDICTMENT - 11
ALSO THAT PART OF LOT 13, BLOCK 9, DESCRIBED AS
FOLLOWS:

BEGINNING AT THE NORTHWESTERLY CORNER OF SAID
LOT 13;

THENCE NORTHEASTERLY ALONG THE NORTHWESTERLY
LINE OF SAID LOT, 56 FEET; THENCE SOUTHEASTERLY,
PARALLEL WITH THE SOUTHWESTERLY LINE OF LOT 13 TO
A POINT ON THE SOUTHEASTERLY LINE, 56 FEET
NORTHEAST FROM THE MOST SOUTHERLY CORNER;
THENCE SOUTHWESTERLY 56 FEET TO THE MOST
SOUTHERLY CORNER OF SAID LOT 13; THENCE
NORTHWESTERLY ALONG THE SOUTHWESTERLY LINE TO
THE POINT OF BEGINNING.

Parcel Number: 45081.0431

MONEY JUDGMENT

A sum of money equal to $363,000.00 in United States currency,
representing the amount of proceeds obtained by Defendants from the wire
fraud violations

If any of the property described above, as the result of any act or omission of
the Defendant:

(a) cannot be located upon the exercise of due diligence;

(b) has been transferred or sold to, or deposited with, a third party;

(c) has been placed beyond the jurisdiction of the court;

(d) has been substantially diminished in value; or

(e) has been commingled with other property which cannot be divided
without difficulty,

INDICTMENT -— 12


File and source

File

1-indictment.pdf

Size

1,339,869 bytes

SHA-256

2093fad299540ee53ce7b094e86f90994387bc0b1c828a090b45873383d3dbde

Our copy

1-indictment.pdf

Original

PACER (login required)