SPOKANE VALLEY, Wash. — A federal jury has convicted a Spokane Valley couple of diverting hundreds of thousands of dollars in COVID-19 relief funds intended to help struggling businesses during the pandemic.
Raymond Joe Hilderbrand and Jennifer Lynn Hilderbrand, both 54, were found guilty on multiple fraud charges after a trial presided over by United States District Judge Thomas O. Rice.
Evidence presented at trial showed the Hilderbrands orchestrated a scheme to funnel money from the Small Business Administration (SBA) to their entertainment business, Poweline Enterprise LLC, after the SBA had previously declined to fund a loan for that company.
According to U.S. Attorney’s Office Eastern Division of Washington, in January 2022, Raymond Hilderbrand submitted an Economic Injury Disaster Loan (EIDL) application for Hilderbrand Auto Services, promising to use the funds solely for the auto repair business.
When the SBA disbursed $320,000 in February 2022, the couple immediately transferred $311,000 to Poweline and used $295,000 to purchase property in Spokane Valley under Poweline’s name.
PREVIOUS COVERAGE: Spokane Valley couple charged for COVID-19 fraud fund
The fraud continued when the Hilderbrands secured an additional $43,000 loan modification in May 2022, promptly transferring $35,000 to Poweline.
The Hilderbrands then began operating an entertainment venue called “The YARD” at the property during summer 2022.
“As a result of the Hilderbrands’ fraud, other small businesses were unable to obtain the help they needed during the COVID-19 pandemic,” stated Acting United States Attorney Rich Barker.
Sentencing is scheduled for July 23, 2025, where they face up to 20 years in prison.
COPYRIGHT 2025 BY KXLY. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.
