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Bloomsburg Woman Sentenced to 12 Months Imprisonment for COVID-19 Relief Fraud Scheme
SCRANTON, Pennsylvania – Vicki Hackenberg, age 57, of Bloomsburg, Pennsylvania, was sentenced to 12 months of imprisonment for perpetrating a bank fraud and money laundering scheme that included 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 United States Attorney John C. Gurganus, Hackenberg pleaded guilty to a money laundering conspiracy involving her codefendant, Darryl Corradini, and others. The conspirators created a shell corporation, CGM Realty LLC, and opened bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents.
The conspirators allegedly used the accounts to receive over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation. That documentation included false information and certifications about CGM Realty LLC’s employee payroll obligations, and intention to use the funds for approved purposes, when in fact CGM Realty LLC had no employees or legitimate business operations.
During sentencing, United States Chief District Judge Matthew W. Brann highlighted Hackenberg’s prior state conviction for a similar fraud offense, noting that she was on probation at the time she committed the instant offense. In addition to Hackenberg’s sentence of imprisonment, Chief Judge Brann also ordered her to pay $431,289 to the victims of her crimes.
The case was investigated by agents with the Internal Revenue Service’s Criminal Investigations Division. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
The United States Attorney’s Office for the Middle District of Pennsylvania announced the sentencing on [date] in Scranton, Pennsylvania.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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