Nivah Garcis, $1M PPP & EIDL Fraud, New Jersey 2024

Grimy Times has learned that Nivah Garcis, a 51-year-old woman from North Plainfield, New Jersey, has been charged with a $1 million Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) fraud scheme.

NEWARK, N.J. – According to a complaint filed in this case and statements made in court, Garcis submitted two fraudulent PPP loan applications to a lender on behalf of two purported businesses and three fraudulent EIDL loan applications to the Small Business Administration (SBA) on behalf of three purported businesses.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.

Garcis is charged by complaint with one count of bank fraud and one count of money laundering. The count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

Garcis made her initial appearance by videoconference today before U.S. Magistrate Judge Edward S. Kiel and was released on $100,000 unsecured bond. The U.S. Attorney’s Office for the District of New Jersey is handling the case.

In this case, Garcis allegedly used the loan proceeds for various personal expenses, including a BMW SUV. The total amount of federal COVID-19 emergency relief funds that Garcis obtained through her scheme is approximately $1.05 million.

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