Man Pleads Guilty to $3.7M COVID-19 Relief Fraud

Kevin Aguilar, 54, admitted to defrauding over $3.7 million in PPP and EIDL funds.Photo byWesley TingeyonUnsplash

A former Monmouth County resident admitted his role in a scheme to fraudulently obtain Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, the U.S. Attorney's Office for the District of New Jersey announced today.

Kevin Aguilar, 54, formerly of Farmingdale, New Jersey, pleaded guilty on Oct. 15, 2024, before U.S. District Judge Michael A. Shipp in Trenton federal court.

According to the U.S. Attorney's Office, Aguilar was charged with one count of conspiracy to commit bank fraud, seven counts of bank fraud, one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit money laundering, one count of money laundering, and one count of aggravated identity theft.

According to court documents, Aguilar conspired with others from April 2020 to April 2021 to submit seven fraudulent PPP loan applications and three EIDL applications on behalf of four businesses.

Aguilar fraudulently obtained approximately $3.3 million in PPP funds and $450,000 in EIDL funds, the U.S. Attorney's Office stated.

The U.S. Attorney's Office further noted that after receiving the funds, Aguilar transferred them to businesses he created to falsely suggest they were being used for legitimate purposes.

Instead, Aguilar used the money to purchase residential properties in Sherman, Texas, a $100,000 truck, and other personal expenses.

The conspiracy to commit bank fraud and each bank fraud count carries a maximum penalty of 30 years in prison and a $1 million fine, according to the U.S. Attorney's Office.

The conspiracy to commit wire fraud and each wire fraud count carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss.

The money laundering charges carry a maximum penalty of 10 years in prison and a $250,000 fine. Aggravated identity theft carries a mandatory additional two-year sentence.

Aguilar’s sentencing is scheduled for March 25, 2025.

Charges remain pending against Aguilar’s co-defendant, Jean E. Rabbitt, formerly of Farmingdale, New Jersey, the U.S. Attorney's Office noted. She is presumed innocent unless proven guilty.