Darryl Corradini, Money Laundering, Pennsylvania 2021

Bloomsburg Couple Sentenced for Massive Money Laundering Scheme

WILLIAMSPORT, PA – In a shocking turn of events, Darryl Corradini, 63, and Vicki Hackenberg, 57, both residents of Bloomsburg, Pennsylvania, have pleaded guilty to conspiring to commit money laundering. The devastating scheme involved over $430,000 in fraudulently obtained funds, including nearly $300,000 in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP).

The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.

According to Acting U.S. Attorney Bruce D. Brandler, Corradini and Hackenberg admitted to assisting their coconspirators by creating a shell corporation, CGM Realty LLC, and opening bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents. Corradini and Hackenberg also assisted their conspirators in obtaining over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation.

As part of their guilty pleas, Corradini and Hackenberg agreed to forfeit several checks to investigators, and to pay over $430,000 in restitution. The couple’s sentencing is yet to come.

“COVID-19 relief fraud is a high priority for law enforcement, and we will continue to vigorously investigate and prosecute these offenses,” stated Acting United States Attorney Bruce D. Brandler. “These funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of fraudsters. We will do everything in our power to make sure that individuals involved in this type of criminal behavior are prosecuted to the fullest extent the law allows.”

The case was investigated by the IRS, Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.

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