Bozeman woman sentenced in federal COVID relief fraud case

MISSOULA, Mont. — According to the U.S. Attorney’s Office, a Bozeman woman was sentenced May 20, 2026, in a federal case tied to COVID relief fraud.

Alaina Marie Garcia, 41, was sentenced to 30 months in prison followed by five years of supervised release. She pleaded guilty in January 2026 to one count of bank fraud and one count of money laundering.

U.S. District Judge Dana L. Christensen presided, according to the Attorney's Office. Federal prosecutors said Garcia applied for a Paycheck Protection Program loan through Celtic Bank on May 5, 2020, on behalf of Bluebird Property Rentals LLC, a company she controlled.

The application claimed the business had 32 employees, average monthly payroll expenses of $245,533 and paid payroll taxes. Prosecutors said those statements were false and that the business had no employees and had never paid payroll taxes.

Garcia received a $613,000 loan. Prosecutors said the false statements affected both her eligibility and the loan amount.

The office said Garcia agreed in the application 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.”

Prosecutors said she used the money for personal expenses instead. Court documents said most of the money went toward the purchase of property in the Bozeman area.

On May 11, 2020, Garcia transferred $548,000 of the loan proceeds to Axilon Law Group as part of that real estate transaction. Garcia later applied for and received loan forgiveness on July 25, 2020.

Prosecutors said she falsely claimed the money had been used for qualifying expenses, including payroll and business mortgage interest payments.

Amanda Prestegard, special agent in charge of IRS-CI’s Denver Field Office, addressed the case in the release.

“While business owners and families were struggling during the COVID pandemic, Garcia was scheming to defraud the Paycheck Protection Program for personal gain,” Prestegard said. “IRS-CI has dedicated significant resources to investigating and uncovering COVID-relief fraud and holding those who stole from these programs accountable continues to be a top priority.”

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