IRS investigation into Bozeman woman's use of COVID relief funds lands her in prison

BOZEMAN, Mont. – A Bozeman woman accused of fraudulently taking COVID relief funds was sentenced to 30 months in prison and 5 years of supervised relief. 

41-year-old Alaina Maria Garcia was sentenced by U.S. District Judge Dana L. Christensen after pleading guilty in Jan. 2026 to bank fraud and money laundering. The IRS and Small Business Administration led the investigation that led to her charges.

Amanda Prestegard, the Special Agent in Charge of IRS-CI’s Denver Field Office, said the IRS dedicated significant resources to investigating COVID-relief fraud, which included its investigation into Garcia.

The District of Montana U.S. Attorney's Office said Garcia  started her fraud in 2020, when she applied for a loan through the Payroll Protection Program (PPP) for a company called Bluebird Property Rentals LLC. 

In her application, she said the company had 32 employees and an average monthly payroll expense of $245,533. PPP granted the company $613,000 because of her application. 

The Attorney’s Office said Garcia lied and Bluebird Property Rentals LLC has zero employees and had never paid payroll taxes.

“Both of these fraudulent statements were material as they affected Garcia’s eligibility to receive the loan and the amount she received. Without these fraudulent statements, the loan would not have been issued,” the Attorney’s Office wrote.

IRS investigation later showed Garcia used $548,000 to purchase a large piece of property in the Bozeman area.

On July 25, 2020, Garcia applied for and was granted forgiveness for the PPP loan after she claimed to have used the funds for qualified expenses including payroll and business mortgage expense payments. 

“None of these statements were true,” the Attorney’s Office said. 

“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.