SPARTA TOWNSHIP, NJ — A Sparta Township couple has been sentenced to one year in federal prison after being found guilty of fraudulently obtaining nearly $800,000 in federal pandemic relief loans.
According to the U.S. Attorney’s Office, Diana Valteri, 42, and Edmond Haxhillari, 43, submitted false applications for Economic Injury Disaster Loans (EIDL) between June and August 2020, claiming to own several small businesses.
In reality, the businesses were shell entities with no operations. The couple used the $790,000 in funds for personal expenses, defrauding the government during a time of widespread economic hardship.
The case was investigated with assistance from the FBI, IRS, and other federal agencies, and the pair were found guilty of wire fraud and money laundering in August 2024.
The Economic Injury Disaster Loan program was designed to help small businesses survive the financial impact of the COVID-19 pandemic. However, fraud cases like this one contributed to massive misuse of federal relief funds.
According to TrackTheRecovery.org, an estimated 9.4 million small businesses closed in the U.S. during 2020.
The Department of Justice urges the public to report COVID-19 related fraud by calling the National Center for Disaster Fraud Hotline at 866-720-5721.
