Piscataway Couple Indicted for Alleged $715K COVID-19 Relief Fraud Scheme

Federal prosecutors charge Sabrina and Joseph Mitlo with falsifying payroll records to obtain PPP funds for non-operational businesses

A former Piscataway couple has been indicted on federal charges for allegedly fraudulently securing more than $715,000 in Paycheck Protection Program (PPP) loans intended for businesses affected by the COVID-19 pandemic. The announcement was made by Senior Counsel Philip Lamparello.

Sabrina Mitlo, 41, and Joseph Mitlo, 40, are each charged with one count of conspiracy to commit bank fraud. They made their initial court appearances on January 20, 2026, before U.S. Magistrate Judge James B. Clark III in Newark federal court and were released on $100,000 unsecured bond.

According to court documents and statements made in court, between May and July 2020, the Mitlos submitted false loan applications claiming to own businesses in New Jersey that employed staff and incurred payroll expenses. In reality, the businesses had no employees or operational payrolls.

The couple allegedly submitted fabricated tax documents with the loan applications to support their claims. Once the PPP loans were deposited into business accounts, they arranged for a payroll service to issue checks to individuals presented as employees, though none were actually employed by the businesses. Sabrina Mitlo then cashed the checks at a check-cashing facility and retained the proceeds.

If convicted, each defendant faces a maximum penalty of 30 years in prison and a fine of up to $1 million—or twice the gross gain or loss resulting from the fraud, whichever is greater.

Senior Counsel Lamparello credited the investigation to special agents of the FBI’s Newark Field Office and the U.S. Small Business Administration’s Office of Inspector General. Assistant U.S. Attorney Robert L. Toll of the Health Care Fraud & Opioids Enforcement Unit in Newark is prosecuting the case.

This indictment is part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, a federal initiative targeting large-scale pandemic-related fraud. The Strike Force uses interagency, data-driven investigations to hold individuals and organizations accountable for the misuse of pandemic relief funds.

Anyone with information regarding suspected COVID-19 fraud can report it to the Department of Justice’s National Center for Disaster Fraud at 866-720-5721 or via the NCDF online complaint form.

As with all criminal charges, the defendants are presumed innocent unless and until proven guilty in a court of law.