Perth Amboy Hair Salon Owner Admits To COVID Fraud

PERTH AMBOY, NJ — A Perth Amboy woman admitted she fraudulently obtained Paycheck Protection Program (“PPP”) loans and pandemic unemployment insurance benefits, U.S. Attorney Alina Habba announced.

Damaris Valerio, a/k/a Damaris Tineo Abreu, 42, owns La Vogue House of Beauty hair salon in Perth Amboy.

From April 2020 through December 2021, Valerio fraudulently obtained $194,212 in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses. Federal prosecutors say she submitted false and fraudulent applications inflating the revenue of her hair salon, payroll expenses and number of employees.

After receiving the fraudulent funds, she diverted proceeds from the relief programs for her personal gain.

She is facing up to 20 years in prison.