Couple Admits COVID-19 Loan Fraud Scheme
Summary
A press release of the U.S. Attorney's Office for the District of New Jersey dated Tuesday, August 20, 2024, announcing that Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta, New Jersey, and Cypress, Texas, pleaded guilty before U.S. District Judge Robert Kirsch to informations charging them with wire fraud and money laundering over approximately $790,000 in Economic Injury Disaster Loan payments. According to documents filed in the case and statements made in court, the married couple from June 2020 through August 2020 sought $790,000 in COVID-19 emergency relief loans and cash advances under the EIDL program. It states that they submitted loan applications for several businesses that purported to have employees and revenue but were shell companies with no business operations. It was announced by U.S. Attorney Philip R. Sellinger.
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Press Release Couple Admits COVID-19 Loan Fraud Scheme Tuesday, August 20, 2024 For Immediate Release U.S. Attorney's Office, District of New Jersey TRENTON N.J. – A New Jersey couple admitted fraudulently obtaining approximately $790,000 in federal Economic Injury Disaster Loans (EIDL) payments, U.S. Attorney Philip R. Sellinger announced today. Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta, New Jersey, and Cypress, Texas, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Aug. 19, 2024, to informations charging them with wire fraud and money laundering. According to documents filed in this case and statements made in court: The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Valteri and Haxhillari are a married couple who from June 2020 through August 2020 participated in a fraudulent scheme to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program. Valteri and Haxhillari submitted fraudulent loan applications on behalf of several businesses that purported to have employees and revenue, but were actually shell companies with no business operations. After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own personal gain. The wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendants or gross loss to the victim, whichever is greatest. Sentencing is scheduled for Jan. 22, 2025. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker, and special agents from the Small Business Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, with the investigation leading to the charges. The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. The government is represented by Assistant U.S. Attorney Fatime Meka Cano and Aja Espinosa of the Economic Crimes Unit in Newark. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . haxhillari.information.pdf valteri.information.pdf Updated August 20, 2024 Topic Coronavirus Component USAO - New Jersey Press Release Number: 24-315 Related Content Press Release Union County Man Admits COVID-19 Relief Program Fraud NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to fraudulently obtain a Payroll Protection Program (PPP) loan. November 26, 2024 Press Release Tax Preparer Charged in 16-Count Indictment for Falsifying Tax Returns for Customers and Defrauding COVID-19 Relief Programs for Small Businesses NEWARK, N.J. – A New Jersey tax preparer was charged in a sixteen-count indictment for using false information to increase client tax refunds, and fraudulently obtaining money from Economic Injury... November 25, 2024 Press Release New Jersey Man Convicted for Stealing COVID-19 Unemployment Benefits TRENTON N.J. – A New Jersey man was convicted for conspiring to illegally obtain over $570,000 in COVID-19 unemployment benefits. October 30, 2024
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