A New Jersey couple has been indicted for allegedly obtaining more than $715,000 in fraudulent Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. Sabrina Mitlo, 41, and Joseph Mitlo, 40, both formerly of Piscataway, are each charged with one count of conspiracy to commit bank fraud.
The indictment was announced by Senior Counsel Philip Lamparello. According to court documents and statements made in court, between May and July 2020, the Mitlos submitted false loan applications for businesses they claimed to own in New Jersey. The businesses reportedly had no employees or payroll obligations. The applications included falsified tax documents that purported to show previous wage payments.
After the PPP loans were deposited into business accounts, the couple arranged for a payroll service to issue checks to supposed employees who did not actually work for the businesses. Sabrina Mitlo then cashed these checks at a check cashing facility and kept the proceeds.
The charge of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a fine up to $1 million or twice the gross gain or loss from the offense.
Senior Counsel Lamparello credited special agents from the FBI’s Newark Field Office, led by Special Agent in Charge Stefanie Roddy, as well as agents and attorneys from the Small Business Administration Office of Inspector General under Special Agent in Charge Amaleka McCall-Brathwaite in New York, for their roles in investigating this case.
Assistant U.S. Attorney Robert L. Toll from the Health Care Fraud & Opioids Enforcement Unit is representing the government.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is part of a national effort established by the Department of Justice to investigate large-scale pandemic relief fraud schemes across multiple states. These strike forces bring together interagency law enforcement teams focused on identifying and prosecuting those responsible for stealing pandemic relief funds.
Individuals with information about attempted COVID-19 fraud can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submitting an online complaint through https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
“The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.”
