Sparta Woman, Husband Charged In $800K COVID Loan Scheme: Feds

NEWARK, NJ - A New Jersey woman and her husband were arrested in Texas this week in connection with a COVID-19 emergency relief loan fraud scheme that lined their pockets with nearly $800,000, federal authorities said.

Diana Valteri, 40, and Edmond Haxhillari, 42, of Sparta, New Jersey, and Cypress, Texas, were charged by complaint with one count of wire fraud and one count of money laundering, U.S. Attorney Philip R. Sellinger said.

Both are scheduled to appear before U.S. Magistrate Judge Jessica S. Allen in Newark federal court on July 7, Sellinger said.

From June through August 2020, Valteri and Haxhillari received $790,000 in Economic Injury Disaster Loans (EIDL) and cash advances meant for distressed small businesses, according to documents filed in this case and statements made in court.

To execute the scheme, the couple submitted fraudulent loan applications on behalf of shell companies with no actual business operations, Sellinger said.

“After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own personal gain,” the U.S. Attorney’s Office said.

If convicted, both Valteri and Haxhillari face a maximum 30 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.