A couple formerly from Piscataway, New Jersey, have been indicted on charges of conspiracy to commit bank fraud in connection with alleged fraudulent applications for federal Paycheck Protection Program (PPP) loans. Senior Counsel Philip Lamparello announced the indictment of Sabrina Mitlo, 41, and Joseph Mitlo, 40, who appeared before U.S. Magistrate Judge James B. Clark, III in Newark federal court on January 20 and were released on $100,000 unsecured bond.
Court documents state that between May and July 2020, Sabrina and Joseph Mitlo sought over $715,000 in PPP loans for businesses they claimed to own in New Jersey. The indictment alleges that these businesses had no employees or payroll but that the couple submitted loan applications containing false information about employee numbers and payroll obligations. They are also accused of submitting falsified tax documents indicating prior wage payments.
After receiving the PPP funds into business accounts, the couple allegedly used a payroll service to issue checks to supposed employees who did not actually work for their businesses. According to the charges, Sabrina Mitlo then cashed these checks at a check cashing facility and kept the proceeds.
The charge of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a fine up to $1 million or twice the gross gain or loss involved.
Senior Counsel Lamparello credited special agents from the FBI’s Newark Field Office under Special Agent in Charge Stefanie Roddy as well as agents from the Small Business Administration’s Office of Inspector General led by Amaleka McCall-Brathwaite for their roles in investigating this case.
Assistant U.S. Attorney Robert L. Toll from the Health Care Fraud & Opioids Enforcement Unit is representing the government.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is part of a national initiative by the Department of Justice aimed at prosecuting large-scale pandemic relief fraud involving criminal organizations and transnational actors. These strike forces use interagency teams with prosecutors and data analysts to identify those responsible for misusing pandemic relief funds.
Individuals with information regarding attempted COVID-19-related fraud are encouraged to report it through the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via its online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
“The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.”
