2 Former Monmouth Residents Charged In $3.3M Fraud Scheme: Cops

WALL, NJ — Two former residents of Monmouth County were charged with stealing over $3 million in federal Paycheck Protection Program (PPP) payments, U.S. Attorney Philip R. Sellinger announced.

Jean E. Rabbitt, 51, and Kevin Aguilar, 51, both formerly of Farmingdale, were charged with complaint with bank fraud, conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity.

If convicted of the charges, Rabbit and Aguilar face up to 40 years in prison and a fine of over $1 million, Sellinger said.

According to officials, Rabbitt and Aguilar, who now live in Frisco, Texas, were arrested on Tuesday in connection to their roles in stealing $3.3 million in federal aid.

Rabbitt submitted false PPP loan applications on behalf of four companies she controlled. The applications included fraudulent payroll and tax records, as well as false certifications about the number of employees and gross revenue of Rabbitt's businesses, Sellinger said.

According to IRS records, none of the tax documents that Rabbitt submitted to the PPP lenders were, in fact, filed with the IRS. Other government records showed that, contrary to the fraudulent payroll records and certifications, Rabbitt’s businesses had not paid wages to any employees.

Rabbitt’s businesses received approximately $3.33 million in federal COVID emergency relief funds meant for small businesses. Aguilar and Rabbitt then used the funds to purchase homes in Sherman, Texas, and to pay for other personal expenses, Sellinger said.

Rabbitt and Aguilar are scheduled to make their initial appearances virtually on Mar. 3 before U.S. Magistrate Judge Kimberly C. Priest Johnson in the Eastern District of Texas.