Woman who claimed connection to local pizza chain to steal COVID relief funds pleads guilty

A woman accused of receiving nearly $2 million in COVID-19 relief funds after fraudulently claiming an affiliation with Flying Pizza has pleaded guilty.

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Lorie Schaefer, 63, pleaded guilty to one count each of wire fraud and money laundering, according to the U.S. Attorney’s Office Southern District of Ohio.

As part of the plea, she agreed to forfeit over $2 million in cash and property, including real estate she purchased in Westerville with the loan.

As News Center 7 reported back in March , Schaefer was one of two women federally charged after being accused of stealing nearly $3 million in Covid relief funds.

Schaefer fraudulently claimed an affiliation with Flying Pizza, which has locations in Dayton, Centerville, and Fairborn.

She reportedly opened a new bank account in December 2020 before registering a fake business name with the state the following March. She claimed the business was established in March 2021 despite the original Flying Pizza being established in 1984.

When they were notified that a PPP loan for nearly $1.9 million was filed in their business name, those at the family-owned business said that their restaurants couldn’t justify such a large loan.

Bank records indicate Schaefer improperly used PPP funds for personal expenses, including liposuction and a newborn baby gift. She also allegedly used over $900,000 to buy and renovate a condominium.

Schaefer could face a maximum of 20 years for wire fraud and up to 10 years for money laundering, the U.S. Attorney’s Office said.