A woman admitted illegally obtaining nearly $200,000 in COVID-19 emergency relief funds, the U.S. Attorney’s Office District of New Jersey announced Wednesday.
Damaris Valerio, 42, of Perth Amboy pleaded guilty to one count of wire fraud and one count of money laundering, according to a statement from the office.
Between April 2020 through December 2021, Valerio obtained $194,212 in Economic Injury Disaster Loan, Paycheck Protection Program, and pandemic unemployment insurance benefits, the office said. This included loans and cash advances meant for distressed small businesses and insurance benefits meant for unemployed workers.
Valerio was originally accused of obtaining over $694,000 in funds. Neither an attorney representing her nor a spokeswoman for the office could be reached for comment.
She submitted false and fraudulent applications which inflated the revenues, payroll expenses and number of employees at her business, La Vogue House of Beauty in Perth Amboy, federal prosecutors said.
In a previously-released criminal complaint, Valerio was accused of inflating her monthly payroll to just over $49,000 for 15 employees when previous tax records showed she had five employees with almost $5,000 in monthly payroll expenses.
After receiving the funds, she diverted proceeds from the relief programs for her personal gain, the office said.
She is scheduled to be sentenced on Oct. 28, authorities said.
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Chris Sheldon may be reached at [email protected].
