Perth Amboy Woman Pleads Guilty to COVID-19 Relief Fraud

GRIMY TIMES EXCLUSIVE: A Perth Amboy woman has admitted to swindling nearly $200,000 in federal COVID-19 relief funds. Damaris Valerio, also known as Damaris Tineo Abreu, 42, pleaded guilty before U.S. District Judge Robert Kirsch for her role in the scheme that defrauded Economic Injury Disaster Loan and Paycheck Protection Program funds.

Valerio is accused of inflating her business’s revenues, payroll expenses, and number of employees to fraudulently obtain $194,212 from April 2020 to December 2021. She then funneled the proceeds into her personal coffers, according to documents filed in the case.

The charges against Valerio include one count of wire fraud and one count of money laundering. The wire fraud charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain, whichever is greater. The money laundering charge could result in 10 years behind bars and a $250,000 fine.

The U.S. Attorney’s Office credited special agents from multiple federal agencies with leading the investigation that led to Valerio’s guilty plea. Sentencing is scheduled for October 28, 2025.

Valerio is represented by attorney John Russo of New York. The case is part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, which targets large-scale pandemic relief fraud investigations.

For those with information regarding potential COVID-19 fraud, contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint online via the NCDF Web Complaint Form.