By: Najla Alexander
A Middlesex County, New Jersey, woman admitted that she fraudulently obtained Economic Injury Disaster Loan (“EIDL”), Paycheck Protection Program (“PPP”), and pandemic unemployment insurance benefits, NJ officials said.
U.S. Attorney Alina Habba stated that Damaris Valerio, a/k/a Damaris Tineo Abreu, 42, of Perth Amboy, pleaded guilty before U.S. District Judge Robert Kirsch to an information charging her with one count of wire fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2020 through December 2021, Valerio fraudulently obtained $194,212 in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP, and pandemic unemployment insurance benefits meant for unemployed workers, by submitting false and fraudulent applications inflating her business’s revenues, payroll expenses, and number of employees, NJ officials said.
According to NJ officials, after receiving the fraudulent funds, she diverted proceeds from the relief programs for her personal gain.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater, NJ officials say.
NJ officials stated the money laundering charge count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greater.
Sentencing is scheduled for October 28.