NEWARK, N.J. – Richard Fadraga, a 53-year-old business owner from Elizabeth, New Jersey, admitted in federal court today to his role in a fraud scheme involving COVID-19 relief funds, fraudulent tax filings, and a deceptive loan application. U.S. Attorney Philip R. Sellinger announced that Fadraga pleaded guilty to one count of wire fraud conspiracy and two counts of wire fraud before U.S. District Judge Michael E. Farbiarz.
Court documents reveal that Fadraga and a co-conspirator submitted fraudulent applications for Economic Injury Disaster Loans (EIDL) in June and July 2020, securing over $240,000 in pandemic relief funds from the Small Business Administration. The second application, submitted under another name, was linked back to Fadraga through further investigation. Additionally, Fadraga helped his conspirator file false federal tax returns, resulting in nearly $800,000 in fraudulent refunds for tax year 2023.
Fadraga also admitted to submitting altered bank statements as part of a fraudulent loan application for purchasing property in Florida. Both wire fraud charges carry penalties of up to 20 years in prison and significant fines. His sentencing is scheduled for February 10, 2025.
