Former New Jersey Business Owner Sentenced to Prison for COVID-19 Loan Fraud Scheme
A former business owner originally linked to New Jersey has been sentenced to prison after admitting she lied in order to illegally secure hundreds of thousands of dollars in COVID-19 relief funds, according to federal prosecutors.
Jane Batista, 44, who is currently residing in Lake Worth, Florida, was sentenced to one and a half years in federal prison after pleading guilty to charges related to fraud and money laundering. The case was handled in the District of New Jersey federal court, where she admitted her role in misusing government assistance programs designed to support struggling businesses during the pandemic.
According to investigators, Batista and her husband operated residential remodeling businesses based in Oradell, New Jersey, where they also lived for a period of time. These businesses were eligible to apply for financial support under federal COVID-19 relief programs, including the Paycheck Protection Program and the Economic Injury Disaster Loan program. These initiatives were created to help small business owners keep their operations running and retain employees during the economic shutdown caused by COVID-19.
However, federal authorities stated that Batista submitted false information in multiple loan applications. She reportedly misrepresented key financial details, including the number of employees working at the business, total payroll expenses, and the company’s overall revenue. In one instance highlighted in court documents, she secured a loan of more than $160,000 by falsely claiming the business had 10 employees with a payroll of approximately $154,000.
After receiving the funds, prosecutors said the money was not used for legitimate business needs or employee support as required under the relief program guidelines. Instead, a portion of the loan proceeds was used for personal expenses, and at least $15,000 was transferred to an account under her control.
Authorities described the case as part of a broader effort to ensure accountability in pandemic-related financial assistance programs, which were intended to provide urgent relief to businesses facing genuine economic hardship. Fraud cases tied to these programs have been actively investigated across the United States as part of federal enforcement actions.
In addition to her prison sentence, Batista has been ordered to forfeit $465,489, the total amount linked to the fraudulent loan activity, according to federal prosecutors.
The case highlights continued scrutiny by federal agencies on misuse of COVID-19 relief funds and serves as a warning that violations involving government-backed financial aid programs can result in serious criminal penalties, including imprisonment and financial restitution.
Sources
United States Attorney’s Office, District of New Jersey
Federal Court Records (District of New Jersey)
Paycheck Protection Program (PPP) Federal Guidelines – U.S. Small Business Administration
Economic Injury Disaster Loan (EIDL) Program – U.S. Small Business Administration
