Couple admits COVID-19 loan fraud scheme

Date: Aug. 20, 2024

Contact: [email protected]

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 and Edmond Haxhillari of Sparta, New Jersey, and Cypress, Texas, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Aug. 20, 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 IRS Criminal Investigation (IRS CI), under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; 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.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

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