NJ Woman Admits Role In $1M COVID Loan Scheme

NEW PLAINFIELD, NJ – A Somerset County woman admitted Monday to fraudulently obtaining over $1 million in federal loans aimed at providing financial assistance to those who were economically impacted during the COVID-19 pandemic, federal officials said.

Nivah Garcis, 51, of North Plainfield, pleaded guilty in Trenton federal court to an information charging her with one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of money laundering, U.S. Attorney Philip R. Sellinger announced.

Garcis and at least one other person submitted fraudulent Paycheck Protection Program (PPP) loans to a lender based on two businesses she controlled, as well as three fraudulent Economic Injury Disaster Loans (EIDL) for three businesses and another business that she owned, Sellinger said.

She later spent the loans for purchases including property and “various personal expenses.”

According to documents filed in court, Garcis’ loan applications each contained fraudulent records, including bogus federal tax documents which appeared to be from the IRS. Garcis also made up employees and wages paid through the businesses, Sellinger said.

Yet, none of the purported tax documents that Garcis submitted in support of her loan applications were ever in fact filed with the IRS, according to agency records. Garcis’ loan applications for her purported businesses were ultimately approved for approximately $1.05 million in federal COVID-19 emergency relief funds meant for distressed small businesses.

The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The counts of wire fraud each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000. The count of money laundering carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.

Sentencing is set for Jan. 31, 2023.