A Spokane Valley couple has been found guilty on multiple fraud charges in connection to a COVID-19 relief loan.

Raymond Joe and Jennifer Lynn Hilderbrand, both age 54, are facing a maximum term of 20 years in prison as well as restitution for fraudulently-obtained funds. Sentencing is scheduled for July 23.

According to a press release from the U.S. Attorney’s Office Eastern District of Washington, the Hilderbrands engaged in an elaborate scheme to obtain money from the Small Business Administration to spend on their entertainment business, Powerline Enterprise LLC, even though the SBA had declined to fund a loan for the company in September 2021.

To execute the scheme, Raymond Hilderbrand completed an Economic Injury Disaster Loan application in the name of Hilderbrand Auto Services located at 10423 E. Trent, in Spokane Valley.

In the application, he said the funds would be used as working capital for the automotive repair business.

In February 2022, however, when the SBA sent $320,000 to Hilderbrand Auto Services, the Hilderbrands immediately transferred $311,000 to Powerline Enterprise. The Hilderbrands then used $295,000 of the funds to purchase the Trent Avenue property in the name of Powerline Enterprise, with Jennifer Hilderbrand as the only owner.

The Hilderbrands continued to attempt to obtain additional EIDL funds in the name of Powerline Enterprise by making false representations about the company’s revenue on the application.

The SBA declined the reconsideration of the Powerline Enterprise application in early May of 2022.

Shortly thereafter, the Hilderbrands requested a modification for the EIDL loan for Hilderbrand Auto. The SBA disbursed an additional $43,000 in funds to the bank account of the automotive repair business, $35,000 of which was immediately withdrawn by check and transferred to Powerline Enterprise.

That May, the Hilderbrands submitted an application on behalf of Powerline Enterprise for a license to sell alcohol and food at the Trent Avenue property. They then began hosting concerts at the location and advertised the property as “The YARD, A New Upcoming Outdoor Venue in Spokane WA.”

In September 2022, the Hilderbrands applied for a new application for a snack bar license on behalf of Powerline Enterprise.

During an interview with a license investigator, Raymond Hilderbrand said Powerline Enterprise didn’t share the property with any other businesses, even though the property was shared with Hilderbrand Auto.

He acknowledged that Powerline Enterprise bought the property for $295,000, but falsely claimed the funds for the purchase weren’t gifted or loaned from another business source. 

“As a result of the Hilderbrands’ fraud, other small businesses were unable to obtain the help they needed during the COVID-19 pandemic,” says Acting U.S. Attorney Rich Barker in the release.