By: Richard L. Smith
A married couple with ties to both New Jersey and Florida has been sentenced to one year in federal prison for orchestrating a scheme to fraudulently obtain nearly $800,000 in COVID-19 emergency relief funds, according to information released by the U.S. Department of Justice.
Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta, New Jersey, and Palm Beach Gardens, Florida, were each sentenced to 12 months in prison after pleading guilty to charges of wire fraud and money laundering.
U.S. District Judge Robert Kirsch imposed the sentences during a hearing held in federal court in Trenton.
Federal prosecutors said that between June and August 2020, Valteri and Haxhillari submitted a series of fraudulent loan applications under the Economic Injury Disaster Loan (EIDL) program, which was created to support small businesses struggling due to the COVID-19 pandemic.
The applications falsely claimed that several businesses, which in reality were non-operational shell entities, had active employees and steady revenue.
As a result of the false claims, the couple secured approximately $790,000 in federal relief funds, including loans and cash advances.
Prosecutors said the pair then used the funds for personal expenses rather than any legitimate business purposes.
The EIDL program, administered by the U.S. Small Business Administration, was intended to provide economic support to businesses in need during the pandemic. Authorities continue to investigate and prosecute individuals who exploited the system for personal gain.