Bozeman woman pleads guilty to fraud charges

Summary

Federal press release datelined Missoula in which U.S. Attorney Kurt Alme announces that Alaina Marie Garcia, 41, of Bozeman, pleaded guilty to one count of bank fraud and one count of money laundering. It says she faces up to 30 years in prison and a $1,000,000 fine for bank fraud and up to 10 years and a $250,000 fine for money laundering, with sentencing set for May 20, 2026. The government alleged that on May 5, 2020 Garcia, for Bluebird Property Rentals LLC, obtained a $613,000.00 PPP loan through Celtic Bank by falsely stating the company had 32 employees and an average monthly payroll of $245,533.00, when it had no employees.

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Full text

MISSOULA - A Bozeman woman accused of obtaining relief funds through fraud admitted to charges yesterday U.S. Attorney Kurt Alme said.

The defendant, Alaina Marie Garcia, 41, pleaded guilty to one count of bank fraud and one count of money laundering. She faces up to 30 years in prison for the bank fraud, a maximum fine of $1,000,000, and five years of supervised release. For money laundering, she faces up to 10 years in prison, a $250,000 fine, and three years of supervised release.

U.S. Magistrate Judge Kathleen L. DeSoto presided. U.S. District Judge Dana L. Christensen will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 20, 2026. Garcia was released with conditions pending further proceedings.

The government alleged in court documents that on May 5, 2020, Garcia, as an authorized representative of Bluebird Property Rentals LLC, an entity she controlled, applied for and was approved for a Payroll Protection Program (PPP) loan through Celtic Bank, in the amount of $613,000.00. In the PPP application, Garcia falsely stated that Bluebird Property Rentals LLC had paid payroll taxes and had 32 employees with an average monthly payroll expense of $245,533.00. None of these statements were true. Garcia and Bluebird Property Rentals LLC had no employees and had never paid payroll tax. Both of these fraudulent statements were material as they effected Garcia’s eligibility to receive the loan and the amount she received. Without these fraudulent statements, the loan would not have been issued.

In the loan application, Garcia also agreed that the funds “will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.” Garcia did not use the proceeds in this manner and instead spent the funds on personal expenses for her private benefit. Most of the funds were expended purchasing a large piece of property in the Bozeman area. On May 11, 2020, Garcia transferred $548,000.00 of the loan proceeds to Axilon Law Group as a part of this real estate transaction.

On July 25, 2020, Garcia applied for and was granted forgiveness of the loan. To obtain forgiveness, Garcia falsely claimed to have used the funds for qualified expenses including payroll and business mortgage interest payments. None of these statements were true.

Assistant U.S. Attorney Colin Rubich prosecuted the case. The Internal Revenue Service and Small Business Administration conducted the investigation.

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