$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.

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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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