Oregon men charged with investing in stock market PPP loans | News Radio 1190 KEX

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Two Oregon men are facing federal charges for fraudulently converting their personal-use loans intended to help small businesses during the COVID-19 pandemic, U.S. Attorney Billy J. Williams has announced.

Andrew Aaron Lloyd, 50, of Lebanon, Oregon, and Russell A. Schort, 38, of Myrtle Creek, Oregon, were charged in a criminal complaint with wire fraud, bank fraud and money laundering.

Lloyd and Schort took advantage of economic relief programs administered by the Small Business Administration (SBA), including Economic Disaster Loans (EIDL) and the Paycheck Protection Program (PPP), as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering from the economic effects of the COVID-19 pandemic.

According to the complaint, the FBI began investigating Lloyd and Schort after discovering suspicious financial transactions indicating the couple may have fraudulently obtained PPP loans. A review of bank records revealed that between April 7, 2020 and May 8, 2020, Lloyd and Schort requested and received at least three PPP loan payments using three separate entities, totaling over $2.2 million. The loan application files included some of the same information across the various business entities, including the physical locations of businesses and the names of several dozen employees.

After receiving the funds, Lloyd transferred at least $1.8 million to a personal online brokerage account and purchased various securities. In the months that followed, these investments increased significantly in value. At the date of the seizure, the securities purchased with the proceeds of the fraud and with a loan secured by shares purchased with the proceeds of the fraud, were valued at over $10 million.

Schort was arrested on January 6, 2021 by FBI agents and made his first appearance in federal court the same day. Lloyd was arrested today by FBI agents and will make his first appearance tomorrow, January 8, 2021, before a U.S. magistrate in Eugene.

This matter was investigated by the FBI with the assistance of the Small Business Association and the IRS. He is being prosecuted by Gavin W. Bruce, Assistant United States Attorney for the District of Oregon.

Criminal complaints are only accusations of a crime, and the accused are presumed innocent until proven guilty.

Source: US Attorney of Oregon