NEWARK, NJ – A couple from Sparta, New Jersey and Cypress, Texas were arrested on Friday, on charges related to the fraudulent procurement of Economic Injury Disaster Loans (EIDL) totaling around $790,000. U.S. Attorney Philip R. Sellinger made the announcement on Friday morning.
Diana Valteri, 40, and Edmond Haxhillari, 42, face charges of wire fraud and money laundering. They are scheduled to appear before U.S. Magistrate Judge Jessica S. Allen in Newark federal court on July 7. The couple is accused of orchestrating a fraudulent scheme between June and August 2020.
They submitted fraudulent loan applications for several shell companies, claiming to have employees and revenue, to receive COVID-19 emergency relief loans and cash advances meant for struggling small businesses. Following receipt of the EIDL funds, the couple allegedly diverted the funds for personal use.
The charges against Valteri and Haxhillari carry severe penalties, including up to 20 years in prison for wire fraud and up to 10 years for money laundering. Each charge also carries a maximum fine of $250,000 or double the gross gain to the defendants or gross loss to the victim, whichever is greater.