Westerville woman sentenced in $2.8M COVID-19 fraud after claiming ties to pizza shop

COLUMBUS, Ohio (WCMH) -- A Westerville woman was sentenced Tuesday for claiming affiliation with a pizza shop in a $2.8 million COVID-19 relief fraud scheme, according to federal prosecutors.

The United States Attorney's Office, Southern District of Ohio reports that Lorie Schaefer, 63, was sentenced to 70 months, nearly six years, in prison.

Schaefer pretended to be someone from Dayton-area pizza restaurants in order to get $1.9 million in COVID-19 relief money, federal prosecutors said. She also helped a co-defendant get more than $980,000 in pandemic relief loans.

In December 2020, the Schaefer opened new bank accounts before registering a fake business name with the state of Ohio in March 2021. She also claimed affiliation with Flying Pizza in Dayton, Centerville, and Fairborn.

The family-owned restaurant was notified that a Paycheck Protection Plan loan for $1.9 million was under their name, and the individuals at the business said they could not justify that large of a loan, prosecutors said.

Schaefer said she had 98 employees and used altered bank records on her loan application. She said the business was established in 2021, despite Flying Pizza being established in 1984.

Also on the application, Schaefer said she was not under indictment, even though she had pending theft charges out of Meigs County.

Prosecutors said Schaefer used the PPP funds on personal expenses. Bank records showed she spent $26,000 on liposuction, wrote a $10,000 check for a "newborn baby gift" and more than $900,000 to buy and renovate a home in Westerville. She made several other retail purchases at stores including Wayfair, Kroger, KFC, Burger King, McDonald's and Olive Garden.

Evidence also suggests Schaefer purchased property in Australia and vehicles in Ohio, according to prosecutors.

Schaeffer pleaded guilty in July 2024, but on multiple occasions, tried to withdraw her plea.