A federal jury in Spokane, Washington, has found Raymond Joe and Jennifer Lynn Hilderbrand guilty of fraud charges related to COVID-19 relief loans. The couple, both 54 and from Spokane Valley, were convicted on multiple counts in a trial overseen by United States District Judge Thomas O. Rice. The trial began on April 21, 2025, and the sentencing is scheduled for July 23, 2025. The Hilderbrands face up to 20 years in prison and must pay restitution for the fraudulently obtained funds.
The case involves the misuse of the Economic Injury Disaster Loan (EIDL) program funds, part of the CARES Act enacted on March 27, 2020. This program was designed to provide financial relief to small and local businesses affected by the pandemic. The Hilderbrands used fraudulent means to acquire these funds for their entertainment business, Poweline Enterprise LLC (Powerline), after being denied a loan by the Small Business Administration (SBA).
In January of 2022, Raymond Hilderbrand applied for an EIDL in the name of Hilderbrand Auto Services. The loan, intended for working capital, was misdirected to the purchase of property for Powerline. Subsequent applications and requests for modifications by the Hilderbrands continued the fraudulent activity.
Despite their efforts, the SBA declined additional EIDL applications for Powerline. However, they managed to procure more funds for Hilderbrand Auto, again misusing the money. The property acquired was later used for events billed as “The YARD, A New Upcoming Outdoor Venue in Spokane WA!”
The prosecution demonstrated that the Hilderbrands made false representations about their business to obtain the funds. Acting United States Attorney Rich Barker emphasized the impact, stating, “As a result of the Hilderbrands’ fraud, other small businesses were unable to obtain the help they needed during the COVID-19 pandemic.”
The case was investigated by several federal entities, including the Eastern District of Washington COVID-19 Fraud Strike Force. Daniel Dahl, TIGTA Acting Special Agent-in-Charge, commented on the verdicts: “Fraudulently applying for loans through a federal program meant to assist Americans in need will be met with aggressive investigation and prosecution.”
Assistant United States Attorneys Frieda K. Zimmerman, Jeremy J. Kelley, and Jacob Brooks are prosecuting the case. The investigation involved TIGTA, SBA OIG, and IRS-CI.