Wendell Smallwood Jr., a former running back for the Philadelphia Eagles, has recently made headlines after pleading guilty to federal fraud charges. This case highlights the serious consequences of fraudulent activities, particularly in the context of financial assistance programs established during the COVID-19 pandemic.
Details of the case
On Dec. 20, 2024, Smallwood appeared in a Delaware court where he admitted to submitting fraudulent tax returns and applications for financial assistance from COVID-19 relief programs. According to The Associated Press, he was able to secure approximately $110,000 in refunds through these false filings.
Initially charged with three counts of fraud in October, Smallwood’s plea deal was approved by a federal judge. His sentencing is scheduled for May 2025, where he will learn the full extent of his punishment.
How the fraud was committed
Prosecutors allege that Smallwood engaged in a scheme that involved using defunct or newly registered businesses to submit false information regarding their operations. This included fabricating start dates, revenue amounts, expenses and employee counts. Specifically, he applied for the Economic Injury Disaster Loan Program, obtaining over $46,000 in loans for three businesses that were falsely represented.
In a more extensive fraudulent effort, Smallwood submitted applications under the names of at least 13 other individuals for the Paycheck Protection Program (PPP). Through these applications, he received nearly $270,000 in loans and kickbacks, as stated by prosecutors.
Smallwood’s response
Following the guilty plea, Smallwood’s attorney, Mark Sheppard, expressed that the former NFL player took full responsibility for his actions. Sheppard stated to the Philadelphia Inquirer, “He recognizes that this is but the first step to try to begin to make amends to the government and to those closest to him. He will continue to do so.” This acknowledgment of wrongdoing is essential in the legal process, as it may influence the court’s decision during sentencing.
Smallwood’s NFL career
Smallwood was drafted by the Philadelphia Eagles in 2016 after a successful collegiate career at West Virginia University. Throughout his NFL journey, he also played for the Pittsburgh Steelers and the Washington Redskins. His career in professional football was marked by significant achievements, but this recent legal trouble has overshadowed his athletic accomplishments.
Implications of fraudulent activities
Smallwood’s case serves as a cautionary tale about the misuse of financial assistance programs designed to help individuals and businesses during challenging times. The COVID-19 pandemic prompted the government to implement various relief measures, but unfortunately, it also opened the door for fraudulent activities. The repercussions of such actions can be severe, leading to legal consequences and damaging reputations. It serves as a reminder that while financial aid programs are essential for recovery, they must be utilized responsibly to ensure that help reaches those who genuinely need it.
