$535K COVID Fraud: Medford Woman Uses Childcare Business To Scam Government

MEDFORD, NJ — A 50-year-old woman is set to go to prison after she used her childcare business to scam the federal government out of COVID-19 relief funds, the United States Department of Justice said.

Treva Harris, of Medford, was sentenced to 12 months and one day in jail, three years of supervised release, a $7,500 fine, a $100 special assessment, and $535,000 in restitution after she pleaded guilty to one count of bank fraud.

In 2020, Harris submitted for and received pandemic relief loans from the United States Small Business Administration that included two amounts for a Philadelphia-based childcare business she owned called "Child Prodigy Education Center."

The first loan was for $514,900 under the Economic Injury Disaster Loan designation.

The original application that Harris submitted in April 2020 accurately detailed that the business had three employees, gross income of $165,907 for the last 12 months, and $113,420 in payroll costs.

Two months later, Harris applied for another Paycheck Protection Program loan that falsely listed the staff size as 27 with a monthly payroll of $214,000 ($2.57 million per year).

She was able to receive a loan of $535,000 and spent it on personal luxury, used it for cash withdrawals, and wrote checks to her boyfriend's business, according to officials.

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