A Middlesex County woman has admitted to fraudulently obtaining COVID-19 relief funds, according to an announcement by U.S. Attorney Alina Habba. Damaris Valerio, also known as Damaris Tineo Abreu, aged 42 and residing in Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch. She was charged with one count of wire fraud and one count of money laundering.
Court documents reveal that from April 2020 through December 2021, Valerio acquired $194,212 in emergency relief funds under false pretenses. These funds were intended for distressed small businesses through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), as well as pandemic unemployment insurance benefits for unemployed workers. Valerio reportedly submitted fraudulent applications inflating her business’s revenues, payroll expenses, and employee numbers to secure these funds. The proceeds were then diverted for personal use.
The wire fraud charge carries a potential penalty of up to 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss involved. The money laundering charge could result in up to 10 years in prison and a similar fine structure. Sentencing is set for October 28, 2025.
U.S. Attorney Habba credited several agencies with the investigation leading to Valerio’s guilty plea: special agents from the U.S. Department of Homeland Security’s Homeland Security Investigations led by Special Agent Ricky J. Patel; agents from the U.S. Department of Labor’s Office of Inspector General under Jonathan Mellone; and agents from the Social Security Administration’s Office of Inspector General led by Amy Connelly.
Assistant U.S. Attorneys Benjamin D. Bleiberg and Fatime Meka Cano are representing the government in this case.
This case is part of efforts by the District of New Jersey COVID-19 Fraud Enforcement Strike Force, which is among five strike forces established nationwide by the U.S. Department of Justice to combat pandemic-related fraud on a large scale.
Reports about attempted COVID-19 fraud can be made 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.
