Covid-19 pandemic fraud
COVID-19 Pandemic Fraud

New Jersey Business Owner Pleads Guilty to Wire Fraud in COVID-19 Scheme

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1 min read
September 26, 2024

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.

Phil Stilton

Phil Stilton is the Editor and Publisher of Shore News Network, an independent digital newsroom providing original reporting on New Jersey, national news, government, public policy, public safety, courts, and community affairs.

As founder of the publication, Stilton leads editorial strategy, investigative reporting, and daily newsroom operations while overseeing coverage that reaches millions of readers annually.

With extensive experience covering municipal government, county government, state legislatures, elections, law enforcement, emergency management, and public records, Stilton specializes in translating complex government actions into clear, factual reporting. His work frequently relies on primary source documents, including court filings, legislation, public meeting records, election finance disclosures, government databases, police reports, and Freedom of Information and Open Public Records Act (OPRA) requests. He has reported extensively on local government accountability, taxpayer spending, campaign finance, public corruption investigations, infrastructure, public safety, and the policies affecting New Jersey residents.

Under Stilton's editorial leadership, Shore News Network has grown into one of New Jersey's largest independent digital news organizations, publishing thousands of original news articles each year while providing breaking news coverage, investigative reporting, and analysis across state and local government. The publication's reporting is routinely sourced from official government agencies, public officials, court records, and firsthand documentation, with a commitment to transparency, attribution, corrections when warranted, and clearly distinguishing factual reporting from opinion.

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