Two state workers charged with PPP loan fraud
Illinois Attorney General Kwame Raoul has charged two state workers with fraudulently receiving Paycheck Protection Program loans.
Candice Brumfield, 23, of Woodridge, faces one count of theft by deception exceeding $10,000 but less than $100,000; one count of loan fraud; one count of wire fraud; four counts of forgery; and one count of income tax fraud.
Arnita Rudd, 63, of Oak Lawn, was charged with theft by deception of more than $10,000 but less than $100,000; one count of loan fraud; one count of wire fraud; three counts of forgery; and one count of income tax fraud.
Both were charged on May 16 and appeared in DuPage County Circuit Court on Tuesday.
A news release from Raoul said Brumfield was working for the Illinois Department of Employment Security.
She received a PPP loan of more than $20,000 in April 2021 from the U. S. Small Business Administration for what she said was a nursing- or residential-care business, according to the release.
At the time, Brumfield reported being the only employee; however, she later reported having five employees and said the business earned a total gross income of more than $97,000 in 2019, the release stated.
The indictment also charges Brumfield applied for and received loan forgiveness in November 2021.
It also says Brumfield submitted false statements in a July 2020 application to receive a Disaster COVID-19 Economic injury loan, resulting in her receiving more than $8,000 for a business named Sassy Hands. As to the tax fraud charge, the indictment states she failed to report a net profit of $90,000 for tax year 2019 on her Illinois return.
Rudd worked at the Illinois Department of Veterans’ Affairs. According to the indictment, she received a PPP loan for more than $20,000 in June 2021 for the business Arnita C. Rudd, doing business as VARS Transportation. She is accused of falsely claiming the business earned a gross income of $96,000 in 2019. She, too, received loan forgiveness.
The income tax charge alleges she failed to report a net profit of $72, 810 on her tax year 2019 Illinois return.