PORTLAND, Ore. (AP) – Two men are accused of converting more than $ 2.2 million in loans intended to help small businesses during the coronavirus pandemic for personal use.
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 reports that the men fraudulently obtained loans from the Paycheck Protection Program, which were permitted under federal coronavirus aid, relief and economic security law.
Between April 7 and May 8, financial records showed both requested 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 in loans to a personal online brokerage account and purchasing securities, according to the complaint. His investments appreciated over several months and grew to more than $ 10 million at the time of their seizure, prosecutors said.
FBI agents arrested Lloyd on Thursday. He is scheduled to appear in US District Court in Eugene on Friday. Schort was arrested on Wednesday. It was not immediately clear whether the men had lawyers to comment for them.