PORTLAND, Ore. (AP) — Two men are accused of converting for personal use more than $2.2 million in loans meant to help small businesses during the coronavirus pandemic.
Andrew Aaron Lloyd, 50, of Lebanon, and Russell A. Schort, 38, of Myrtle Creek, are charged with wire fraud, bank fraud and money laundering in federal court in Eugene, The Oregonian/OregonLive reported.
The FBI investigated after receiving information that the men fraudulently obtained Paycheck Protection Program loans, which were authorized by the federal Coronavirus Aid, Relief and Economic Security Act.
Between April 7 and May 8, financial records showed both applied for and received at least three loan payments using three different entities, totaling more than $2.2 million, according to a criminal complaint filed in court.
Lloyd is accused of transferring at least $1.8 million from the loans to a personal online brokerage account and buying securities, the complaint says. His investments increased in value over several months and became worth over $10 million at the time of their seizure, according to prosecutors.
FBI agents arrested Lloyd on Thursday. He’s scheduled to appear in U.S. District Court in Eugene on Friday. Schort was arrested on Wednesday. It wasn’t immediately known if the men have lawyers to comment for them.