Damaris Valerio, Wire Fraud and Money Laundering, New Jersey 2023

Newark, NJ – In a shocking scheme, 41-year-old Damaris Valerio of Perth Amboy, New Jersey, has been charged with one count of wire fraud and one count of money laundering for allegedly obtaining $694,212 in COVID-19 emergency relief funds.

According to U.S. Attorney Philip R. Sellinger, Valerio submitted false and fraudulent applications to the Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) between April 2020 and December 2021, inflating her business’ revenue, payroll expenses, and number of employees.

After receiving the fraudulent funds, Valerio 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. Valerio made her initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court on November 15, 2023, and was released on $100,000 unsecured bond.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security Investigations, the U.S. Department of Labor, Office of Inspector General, and the Social Security Administration, Office of the Inspector General, with the investigation leading to the charges.

The case is being prosecuted 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 to investigate and prosecute COVID-19 fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the 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 Damaris Valerio is presumed innocent unless and until proven guilty.

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