By: Richard L. Smith
Richard Fadraga, 53, of Elizabeth, New Jersey, has admitted to his role in a scheme involving fraudulent COVID-19 funds, fake tax filings, and a deceptive loan application, according to federal authorities.
Fadraga pleaded guilty in Newark federal court to charges of wire fraud conspiracy and wire fraud.
According to court documents, in 2020, Fadraga and a conspirator submitted false Economic Injury Disaster Loan (EIDL) applications, securing over $241,000 in fraudulent COVID-19 funds from the Small Business Administration (SBA).
The conspirator used Fadraga’s personal information to create an Employer Identification Number (EIN) and an Electronic Filer Identification Number (EFIN), which were then used to file false tax returns.
The fraudulent tax filings resulted in more than $790,000 in federal refunds, including over $100,000 directed to the conspirator and associates.
Additionally, Fadraga applied for a bank loan to purchase property in Florida.
When the lender requested further information, he provided bank statements that were altered to inflate his account balance.
Each count of wire fraud and wire fraud conspiracy carries a potential sentence of up to 20 years in prison and a $250,000 fine. Fadraga's sentencing is set for February 10, 2025.