TRENTON, N.J. — A Perth Amboy woman admitted to fraudulently obtaining more than $190,000 in federal COVID-19 relief funds, including loans and unemployment benefits, by submitting false applications, U.S. Attorney Alina Habba announced Thursday.
Damaris Valerio, also known as Damaris Tineo Abreu, 42, pleaded guilty before U.S. District Judge Robert Kirsch to one count of wire fraud and one count of money laundering.
According to court documents, Valerio submitted fraudulent applications between April 2020 and December 2021 for Economic Injury Disaster Loan (EIDL) funds, Paycheck Protection Program (PPP) loans, and pandemic unemployment benefits. She inflated business revenues, payroll figures, and employee counts to qualify for the programs.
Authorities say Valerio ultimately received $194,212 in funds and used the proceeds for personal expenses, violating the terms of the relief programs.
Sentencing set for October as investigation continues
The wire fraud charge carries a maximum sentence of 20 years in prison and a fine of $250,000 or double the amount of gain or loss. The money laundering charge carries a maximum of 10 years in prison and the same financial penalties. Valerio is scheduled to be sentenced on October 28.
The investigation was conducted by agents from the Department of Homeland Security, the Department of Labor’s Office of Inspector General, and the Social Security Administration’s Office of the Inspector General.
