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New Jersey Woman Charged with COVID-19 Relief Fraud Scheme
A brazen scheme to defraud COVID-19 relief funds has landed a Middlesex County woman in hot water. Damaris Valerio, 41, of Perth Amboy, New Jersey, is charged with one count of wire fraud and one count of money laundering.
According to documents filed in this case and statements made in court, Valerio fraudulently obtained $694,212 in COVID-19 emergency relief funds between April 2020 and December 2021. The funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP, and unemployment insurance benefits meant for unemployed workers, were obtained by submitting false and fraudulent applications.
Valerio is accused of inflating her business’ revenue, payroll expenses, and number of employees to secure the funds. After receiving the fraudulent funds, she 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 on November 15, 2023, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force, which focuses on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors, is leading the investigation. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s 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 the defendant is presumed innocent unless and until proven guilty.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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