Oregon man sent to prison for laundering millions in COVID relief

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PORTLAND, Ore. (KOIN) – A man was sentenced to prison on Thursday for stealing millions of dollars in federal loans meant to help small businesses during the COVID-19 pandemic.

Andrew Aaron Lloyd, from Lebanon, Oregon, was sentenced to 48 months in prison and five years’ supervised release. The 51-year-old, was also ordered to pay more than $4 million in restitution, forfeit 25 properties and more than 15,000 shares of Tesla, Inc. stock.

According to court documents, in April 2020, Lloyd submitted loan applications for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency funding to small business owners during the pandemic.

Lloyd applied under various business names and used personal identification of relatives and business associates without their consent, officials said.

He also created fake IRS forms with names of purported employees and their wages – claiming his businesses paid employees up to $4.7 million.

Overall, Lloyd applied for nine PPP loans. Six were accepted, giving Lloyd $3.4 million. Additionally, he received an EIDL, adding $160,000. 

Lloyd bought more than 25 properties in Oregon and California and bought 15,740 shares in Tesla, which agents seized in January 2021. A few months later, authorities then seized an account with upwards of $660,000 in securities and cash.

Officials said the securities and cash from Lloyd’s accounts are valued at more than $18 million.

In January 2021, Lloyd was charged with criminal complaint with wire fraud, bank fraud, money laundering and aggravated identity theft. He pleaded guilty to all charges on June 17, 2021.

Lloyd’s accomplice, 39-year-old Russell Anthony Schort, of Myrtle Creek, was also charged and pleaded guilty to bank fraud in November 2021. Schort was sent to prison and ordered to pay $294,552 in restitution.

The case was investigated by the FBI, SBA Office of Inspector General and IRS Criminal Investigation.

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