Couple pleads guilty to fraud, money laundering

A Sparta couple admitted fraudulently obtaining about $790,000 in federal Economic Injury Disaster Loans (EIDL) payments, U.S. Attorney Philip Sellinger said Aug. 20.

Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta and Cypress, Texas, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court Aug. 19 to informations charging them with wire fraud and money laundering.

According to documents filed in the case and statements made in court, Valteri and Haxhillari, who are married, participated in a fraudulent scheme from June through August 2020 to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program.

They submitted fraudulent loan applications on behalf of several businesses that claimed to have employees and revenue but were shell companies with no business operations.

After receiving the EIDL funds, they used them for personal gain.

The wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendants or gross loss to the victim, whichever is greatest.

Sentencing is scheduled for Jan. 22.

Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James Dennehy; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker; and special agents from the Small Business Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, with the investigation leading to the charges.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the Department of Justice to investigate and prosecute COVID-19 fraud. They focus on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors.

Anyone with information about allegations of attempted fraud involving COVID-19 may report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at justice.gov/disaster-fraud/ncdf-disaster-complaint-form