Former Philadelphia Eagles running back Wendell Smallwood Jr. is facing serious legal repercussions as he has been charged with multiple felonies related to COVID-19 relief fraud. Smallwood, who was part of the Eagles' Super Bowl-winning team, is accused of submitting fraudulent applications to both the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). The charges include wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the IRS, with a potential prison sentence of up to 50 years.
According to federal prosecutors, Smallwood allegedly submitted false information on behalf of several businesses—some of which were either defunct or newly registered—to secure over $46,000 in EIDL loans. These funds were not used for legitimate business expenses but were instead funneled into his personal accounts. Additionally, Smallwood is accused of orchestrating a scheme that involved submitting fraudulent PPP applications for at least 13 sole proprietorships, resulting in approximately $269,000 in loan proceeds. He reportedly received kickbacks ranging from $4,000 to $12,000 for facilitating these loans.
The implications of Smallwood's case extend beyond his personal legal troubles; it reflects a broader crackdown by the Department of Justice on individuals exploiting pandemic relief programs. The DOJ has ramped up efforts to investigate and prosecute those suspected of defrauding these federal assistance programs, which were designed to support businesses during a time of unprecedented economic hardship. As investigations continue, Smallwood's case serves as a cautionary tale for others who may have engaged in similar fraudulent activities. A plea hearing is scheduled for December 20, where further details may emerge regarding his cooperation with authorities and potential sentencing outcomes.
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