A New Jersey woman admitted she lied about owning multiple companies to collect about $1.05 million in federal loans during the coronavirus pandemic.
Nivah Garcis, 51, of North Plainfield pleaded guilty Monday to one count each of conspiracy to commit bank fraud and money laundering and three counts of wire fraud, the U.S. Attorney’s Office for New Jersey said in a statement.
Garcis falsified at least two Paycheck Protection Program loans and Economic Injury Disaster Loans, prosecutors said.
The PPP loans were part of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act which took effect in late March 2020. The were intended to be used by small businesses to cover expenses such as payroll, lease payments, mortgage interest and utilities.
According to court papers, Garcis claimed to own several businesses, though none paid any wages to employees. None of the tax documents that Garcis submitted as part of her loan applications were ever filed with the IRS.
She used the loan money to buy a 2019 BMW and make payments on a 2017 Mercedes-Benz, according to court documents. Some of the money she illegally obtained was used to make mortgage payments on properties Garcis owned in Linden and Irvington, court papers also state.
Garcis also bought a property in East Orange and listed it as the business address for one of the businesses she said she operated, according to the court documents.
Among the businesses Garcis said she owned were Headway, an alleged construction company; Allstar Development Enterprises, an alleged real estate, rental and leasing company; and Advanced Rapid Property Clean-U. Garcis also said she was associated with Bigly Motors, which claimed to sell cars, and Haven International, which allegedly administered housing programs, charging documents said.
Garcis is scheduled to be sentenced to federal prison Jan. 31.
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Jeff Goldman may be reached at jeff_goldman@njadvancemedia.com.
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