SPOKANE, WA — A Spokane Valley couple has been found guilty of fraud charges related to misusing COVID-19 relief funds, following a federal trial in U.S. District Court.
Raymond Joe Hilderbrand and Jennifer Lynn Hilderbrand, both 54, were convicted by a jury on multiple fraud charges after a trial presided over by U.S. District Judge Thomas O. Rice. Sentencing is scheduled for July 23, 2025, where the Hilderbrands face up to 20 years in prison and potential restitution.
The case involved fraudulent applications for funds through the Economic Injury Disaster Loan (EIDL) program, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to trial evidence, the Hilderbrands submitted an EIDL application in January 2022 for Hilderbrand Auto Services, falsely claiming the funds would be used exclusively for the automotive repair business. After receiving $320,000 from the Small Business Administration (SBA), they transferred $311,000 to Powerline Enterprises LLC, their entertainment business, and used $295,000 to purchase a property on Trent Avenue under Powerline’s name.
The Hilderbrands also submitted additional EIDL applications and sought modifications, making further false representations about company revenues and fund usage. In May 2022, they received another $43,000 for Hilderbrand Auto, $35,000 of which was quickly transferred to Powerline.
Subsequently, the couple hosted concerts at the Trent Avenue property, advertising the site as “The YARD, A New Upcoming Outdoor Venue in Spokane WA!” They also applied for alcohol and food licenses, misrepresenting ownership and financing details during the application process.
Acting United States Attorney Rich Barker stated, “Our incredible trial team worked closely with the SBA to present a compelling case, establishing that both Raymond and Jennifer Hilderbrand were held accountable for the lies they told to obtain funding that was designed for small businesses in need of a lifeline.”
The case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force, along with TIGTA, SBA OIG, and IRS-CI. It was prosecuted by Assistant United States Attorneys Frieda K. Zimmerman, Jeremy J. Kelley, and Jacob Brooks.
