41° and Sunny
NJ Couple Pleads Guilty to $790,000 COVID-19 Loan Fraud Scheme
A husband and wife from Sparta, New Jersey, have admitted to fraudulently obtaining nearly $800,000 in federal loans intended for pandemic relief.
NEW JERSEY - Diana Valteri, 42, and Edmond Haxhillari, 43, who have residences in both Sparta, New Jersey, and Cypress, Texas, pleaded guilty on August 20, 2024, to charges of wire fraud and money laundering in a federal court in Trenton. U.S. District Judge Robert Kirsch presided over the case.
The couple's fraudulent activities took place between June 2020 and August 2020, during which they exploited the Economic Injury Disaster Loans (EIDL) program—a key component of the CARES Act designed to provide emergency financial support to small businesses impacted by the COVID-19 pandemic. Valteri and Haxhillari submitted false loan applications for several shell companies, falsely claiming they had employees and revenue. After securing $790,000 in EIDL funds, the couple diverted the money for personal use.
The wire fraud charge could lead to a maximum sentence of 20 years in prison, while the money laundering charge carries a maximum sentence of 10 years. Both charges also include a potential fine of $250,000, or twice the financial gain or loss associated with the fraud. Sentencing is scheduled for January 22, 2025.
U.S. Attorney Philip R. Sellinger credited the successful investigation to multiple federal agencies, including the FBI, IRS Criminal Investigation, the Social Security Administration Office of the Inspector General, and the Small Business Administration's Office of the Inspector General.
This case is part of the broader efforts of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, established by the U.S. Department of Justice to tackle large-scale pandemic-related fraud. The strike force is one of five nationwide, focusing on prosecuting multistate and transnational fraud operations.
The case is being prosecuted by Assistant U.S. Attorneys Fatime Meka Cano and Aja Espinosa from the Economic Crimes Unit in Newark.
Anyone with information on potential COVID-19 fraud can report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or via the online complaint form.
