A Spokane Valley couple, Raymond Joe and Jennifer Lynn Hilderbrand, has been found guilty by a federal jury on multiple fraud charges related to COVID-19 relief funds. The verdict was delivered under the supervision of United States District Judge Thomas O. Rice after a trial starting on April 21, 2025.
The Hilderbrands were found to have fraudulently obtained funds through the Economic Injury Disaster Loan (EIDL) program, designed to support small businesses impacted by the pandemic. They reportedly diverted funds intended for Hilderbrand Auto Services to their entertainment business, Poweline Enterprise LLC (Powerline).
Evidence revealed the Hilderbrands applied for a loan under false pretenses and then misappropriated the funds for their entertainment venture. They initially secured $320,000 from the Small Business Administration (SBA) in early 2022, with $311,000 directed to Powerline. Subsequent funds were procured through further misrepresentations, with an additional $43,000 disbursed by the SBA and similarly redirected.
In public remarks, Acting United States Attorney Rich Barker expressed gratitude: “I am grateful for the prosecutors and investigators that worked together to seek justice in this case,” acknowledging the impact on other small businesses locked out of necessary aid. The verdict underscores the judicial commitment to countering fraud. Daniel Dahl, TIGTA Acting Special Agent-in-Charge, stated, "Fraudulently applying for loans through a federal program meant to assist Americans in need will be met with aggressive investigation and prosecution."
The Eastern District of Washington COVID-19 Fraud Strike Force carried out the investigation, alongside various agencies such as TIGTA, SBA OIG, and IRS-CI. The prosecutorial team included Assistant United States Attorneys Frieda K. Zimmerman, Jeremy J. Kelley, and Jacob Brooks. Sentencing is scheduled for July 23, 2025, with the Hilderbrands facing up to 20 years in prison.
###
