U.S. Department of Labor OIG, Middlesex County Women Charged with COVID-19 Fraud Scheme (USAO D-NJ 11/16/2023) (2023-11-17)

Summary

A press release from the U.S. Attorney's Office, District of New Jersey, dated November 16, 2023, announcing that Damaris Valerio, 41, of Perth Amboy, New Jersey, is charged by complaint with one count of wire fraud and one count of money laundering. Valerio made an initial appearance on Nov. 15, 2023, before U.S. Magistrate Judge André M. Espinosa and was released on $100,000 unsecured bond. According to documents filed in the case, from April 2020 through December 2021 Valerio fraudulently obtained $694,212 in EIDL, PPP and unemployment insurance funds by submitting applications inflating business revenue, payroll expenses and number of employees. The release states that the charges are merely accusations.

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PRESS RELEASE



Middlesex County Women
Charged with COVID-19 Fraud
Scheme
Thursday, November 16, 2023


For Immediate Release
U.S. Attorney's Office, District of New Jersey

NEWARK N.J. – A Middlesex County, New Jersey, woman was arrested on charges that
she fraudulently obtained Economic Injury Disaster Loans (EIDL) and Paycheck
Protection Program (PPP) funds and unemployment insurance benefits totaling
$694,212, U.S. Attorney Philip R. Sellinger announced today.

Damaris Valerio, 41, of Perth Amboy, New Jersey, is charged by complaint with one
count of wire fraud and one count of money laundering. She made her initial
appearance on Nov. 15, 2023, before U.S. Magistrate Judge André M. Espinosa in
Newark federal court and was released on $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

From April 2020 through December 2021, Valerio fraudulently obtained $694,212 in
COVID-19 emergency relief funds, which included loans and cash advances meant for
distressed small businesses under the EIDL program and PPP and unemployment
insurance benefits meant for unemployed workers, by submitting false and fraudulent
applications inflating her business’ revenue, payroll expenses, and number of
employees. After receiving the fraudulent funds, she diverted virtually all of the
proceeds for her 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.
U.S. Attorney Sellinger credited special agents of the of the Department of Homeland
Security Investigations, under the direction of Acting Special Agent in Charge Michael
Alfonso, special agents of U.S. Department of Labor, Office of Inspector General,
Northeast Region under the direction of Special Agent in Charge Jonathan Mellone, and
special agents of the Social Security Administration, Office of the Inspector General,
under the direction of Special Agent in Charge Sharon MacDermott, with the
investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the
Economic Crimes Unit in Newark.

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, multi-
state 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.

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.

The charges and allegations contained in the complaint are merely accusations, and the
defendant is presumed innocent unless and until proven guilty.



valerio.complaint.pdf (145.62 KB)
Updated November 16, 2023

Topic
CORONAVIRUS


Component
USAO - New Jersey
Press Release Number: 23-334


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