OIG news release — Spokane Valley Couple Sentenced on Fraud Convictions in Connection to COVID-19 Relief Loan

Summary

An OIG news release published November 17, 2025 by the Office of Inspector General on the October 8, 2025 sentencing by United States District Judge Thomas O. Rice of Raymond and Jennifer Hilderbrand of Spokane Valley, Washington; it lists 2:23-cr-00114-TOR. Raymond Hilderbrand was sentenced to 30 months in federal prison and Jennifer Hilderbrand to time served, and both will be on supervised release for three years and are required to pay $363,000 in restitution. The release states that Raymond Hilderbrand completed an EIDL application in the name of Hilderbrand Auto Services, that the SBA sent $320,000 in February 2022, and that the Hilderbrands immediately transferred $311,000 to their entertainment business, Powerline Enterprise LLC.

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OIG news release

Spokane Valley Couple Sentenced on Fraud Convictions in Connection to COVID-19 Relief Loan

Published on November 17, 2025 by Office of Inspector General

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On October 8, 2025, United States District Judge Thomas O. Rice sentenced Raymond and Jennifer Hilderbrand, ages 55 and 54, of Spokane Valley, Washington. Earlier this year, the Hilderbrands were found guilty at a jury trial on multiple fraud charges. Raymond Hilderbrand was sentenced to 30 months in federal prison; Jennifer Hilderbrand was sentenced to time served. Both Raymond and Jennifer Hilderbrand will be on supervised release for three years and are required to pay $363,000 in restitution.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The EIDL program have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.

The evidence presented at trial established that the Hilderbrands engaged in an elaborate scheme to obtain money from the Small Business Administration (SBA) to spend on their entertainment business called Powerline Enterprise LLC (Powerline), even though in September of 2021, the SBA had declined to fund a loan for the company.

To execute this scheme, in January of 2022, Raymond Hilderbrand completed a EIDL application in the name of Hilderbrand Auto Services, which was an automotive repair business, owned by the Raymond Hilderbrand, located at 10423 E. Trent Avenue, Spokane Valley. In the application he told the SBA the EIDL funds would be used as working capital for Hilderbrand Auto Services and would not be used for another company. However, in February 2022, when SBA sent $320,000 to Hilderbrand Auto to be used by that business to alleviate economic injury caused by the pandemic, the Hilderbrands immediately transferred $311,000 to Powerline. The Hilderbrands then used $295,000 of the EIDL funds to purchase the Trent Avenue property in the name of Powerline, with Jennifer Hilderbrand as the sole owner.

The Hilderbrands continued to attempt to obtain additional EIDL funds in the name of Powerline by making false representations about the company’s revenue on their EIDL application. The SBA declined the reconsideration of the Powerline EIDL application in early May of 2022. Shortly thereafter, the Hilderbrands requested a modification for the EIDL loan for Hilderbrand Auto. The SBA approved the request, and Raymond Hilderbrand again promised to use the money solely for Hilderbrand Auto. On May 17, 2022, the SBA disbursed an additional $43,000 in EIDL funds to the Hilderbrand Auto bank account, $35,000 of which was immediately withdrawn by check and transferred to Powerline.

“I am grateful for the prosecutors and investigators that worked together to seek justice in this case,” stated United States Attorney S. Peter Serrano. “Their work ensured both Raymond and Jennifer Hilderbrand were held accountable for lies told to obtain funding that was designed for small businesses in need of a lifeline. As a result of the Hilderbrands’ fraud, other small businesses were unable to obtain the help they needed during the COVID-19 pandemic.”

“The investigative efforts of the Treasury Inspector General for Tax Administration (TIGTA) and its partners, along with the prosecutorial work of the U.S. Attorney's Office, demonstrate the commitment to pursuing, capturing, and prosecuting those who try to defraud the American people," said TIGTA Special Agent-in-Charge Krystofor Proev.

This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by TIGTA, SBA OIG, and IRS-CI. This case was prosecuted by Assistant United States Attorneys Frieda K. Zimmerman, Jeremy J. Kelley, and Jacob Brooks.

2:23-cr-00114-TOR

Related programs: COVID EIDL, Pandemic Oversight

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