A woman from Middlesex County, New Jersey, has admitted to fraudulently obtaining funds intended for COVID-19 relief programs. U.S. Attorney Alina Habba announced that Damaris Valerio, also known as Damaris Tineo Abreu, 42, of Perth Amboy, pleaded guilty to charges of wire fraud and money laundering before U.S. District Judge Robert Kirsch.
Valerio's fraudulent activities spanned from April 2020 to December 2021. During this period, she acquired $194,212 in emergency relief funds by submitting false applications that inflated her business’s revenues, payroll expenses, and employee numbers. These funds were part of the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), as well as pandemic unemployment insurance benefits meant for unemployed workers. The proceeds were diverted for personal use.
The charge of wire fraud carries a potential penalty of up to 20 years in prison and a fine of $250,000 or twice the gross gain or loss involved. The money laundering charge could result in a maximum sentence of 10 years and a similar fine structure. Sentencing is set for October 28, 2025.
U.S. Attorney Habba credited several agencies with leading the investigation: Homeland Security Investigations under Special Agent in Charge Ricky J. Patel; the Department of Labor's Office of Inspector General under Special Agent in Charge Jonathan Mellone; and the Social Security Administration's Office of Inspector General under Special Agent in Charge Amy Connelly.
Assistant U.S. Attorneys Benjamin D. Bleiberg and Fatime Meka Cano from Newark's Economic Crimes Unit are representing the government in this case.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one among five established nationwide by the Department of Justice to tackle large-scale pandemic relief frauds conducted by criminal organizations and transnational actors.
Individuals with information about attempted COVID-19 fraud can report it via the National Center for Disaster Fraud Hotline at 866-720-5721 or through their online complaint form.
Defense counsel for Valerio is John Russo Esq., based in New York.
