December 24, 2024
Thom Carroll/for PhillyVoice
Former Philadelphia Eagles running back Wendell Smallwood pleaded guilty to defrauding two COVID-19 relief programs and the IRS in 2020 and 2021. Smallwood is accused of conspiring with others to submit fabricated information on loan applications and tax returns.
Former Eagles running back Wendell Smallwood has pleaded guilty to charges that he defrauded two COVID-19 relief programs and submitted false tax documents to the IRS during the pandemic, federal prosecutors in Delaware said.
Smallwood, 30, was charged in late October with crimes related to federal loans he allegedly obtained using defunct businesses and shell companies. Prosecutors said Smallwood misrepresented the finances and operations of those businesses to receive payouts from the federal Economic Injury Disaster Loan program and the Paycheck Protection Program between 2020 and 2021. The two programs were designed to help sustain businesses impacted by the pandemic.
Smallwood was accused of conspiring with an unnamed person as part of a kickback scheme using loan proceeds. People who agreed to be named as the sole proprietors of businesses on the loan applications allegedly received payouts from about $269,000 distributed by the two programs. At least 13 sole proprietors were found to have used fabricated business information and revenue figures to obtain loans, prosecutors said.
Smallwood received $81,000 from the kickback scheme, prosecutors said during a court hearing in Wilmington on Friday, the News Journal reported.
Smallwood also allegedly took part in a tax fraud conspiracy that involved submitting false returns to the IRS. The doctored returns included claims for nearly $222,000 in tax refunds, prosecutors said. The IRS processed many of the returns as if they were legitimate, issuing more than $110,000 in fraudulent refund checks.
Smallwood, who grew up in Wilmington, pleaded guilty to charges of felony wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the IRS. The maximum penalty for these offenses is 50 years in prison, in addition to fines and restitution.
Smallwood was the Eagles' fifth-round draft pick in 2016. He played three seasons in Philadelphia and also had stints in Washington, Pittsburgh and Jacksonville. He made around $3 million during his pro football career, according to spotrac.
