Ex-Monmouth County Resident Pleads Guilty to $3.7 Million CARES Act Loan Fraud

A former Monmouth County man admits to a large-scale scheme defrauding over $3.7 million from federal COVID-19 relief funds.

Kevin Aguilar, 54, formerly of Farmingdale, NJ, pleaded guilty to multiple charges including bank fraud, wire fraud, money laundering, and aggravated identity theft, U.S. Attorney Philip R. Sellinger announced today. Aguilar entered his plea in Trenton's federal court before U.S. District Judge Michael A. Shipp on October 15, 2024.

From April 2020 to April 2021, Aguilar, alongside unnamed co-conspirators, executed a fraudulent scheme involving seven Payroll Protection Program (PPP) loans and three Economic Injury Disaster Loan (EIDL) applications. These applications falsely represented four businesses, leading to Aguilar obtaining approximately $3.3 million in PPP funds and $450,000 in EIDL funds.

The funds were not used as intended. Instead, Aguilar laundered the money through various businesses he controlled, purchasing properties in Sherman, Texas, a $100,000 truck, and covering other personal expenses.

The legal ramifications for Aguilar are severe. Each count of bank fraud could result in up to 30 years in prison and a $1 million fine, while the wire fraud charges could lead to 20 years and $250,000 fines, or double the gross gain or loss. Money laundering charges also carry significant penalties, and the aggravated identity theft charge adds a mandatory two-year consecutive prison term.

Sentencing is set for March 25, 2025. Meanwhile, charges against co-defendant Jean E. Rabbitt of Farmingdale continue, with Rabbitt maintaining innocence until proven guilty.