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Sussex County couple admits COVID-19 loan fraud scheme

SPARTA TOWNSHIP, NJ (Sussex County) – A Sussex County couple admitted fraudulently obtaining approximately $790,000 in federal Economic Injury Disaster Loans (EIDL) payments, according to U.S. Attorney Philip R. Sellinger.

Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta Township and Cypress, Texas, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Aug. 20 to wire fraud and money laundering, Sellinger said.

According to documents filed in this case and statements made in court, he Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.

Valteri and Haxhillari are a married couple who from June 2020 through August 2020 participated in a fraudulent scheme to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program. Valteri and Haxhillari submitted fraudulent loan applications on behalf of several businesses that purported to have employees and revenue, but were actually shell companies with no business operations. After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own 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 in prison. 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, 2025.

Anyone with information about allegations of attempted fraud involving COVID-19 can 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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Jay Edwards

Born and raised in Northwest NJ, Jay has a degree in Communications and has had a life-long interest in local radio and various styles of music. Jay has held numerous jobs over the years such as stunt car driver, bartender, voice-over artist, traffic reporter (award winning), NY Yankee maintenance crewmember and peanut farm worker. His hobbies include mountain climbing, snowmobiling, cooking, performing stand-up comedy and he is an avid squirrel watcher. Jay has been a guest on America’s Morning Headquarters,program on The Weather Channel, and was interviewed by Sam Champion.

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