Former Eagles, Steelers, Commanders RB Wendell Smallwood charged with fraud over alleged COVID-19, tax scams
Former NFL running back Wendell Smallwood, who won a Super Bowl with the Philadelphia Eagles in 2018, has been charged with defrauding federal COVID-19 relief programs, according to Tom Dougherty of CBS Philadelphia.
Smallwood, 30, was charged with felony counts of wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the IRS. He faces up to 50 years in prison if convicted on all charges.
Prosecutors allege that Smallwood applied for Economic Injury Disaster Loans (or EIDL) using "defunct or recently registered businesses and claimed false business operations" when applying to the Small Business Administration.
They also allege that Smallwood was engaged in a scheme to submit false information to the Paycheck Protection Program (or PPP), in which loans to help cover employees' paychecks, or mortgage interest, rent or facilities during the COVID-19 lockdown were provided, and eventually forgiven by the federal government.
According to court documents, Smallwood fraudulently applied for five EIDL loans for various companies he claimed to be the sole proprietor of. He also engaged in a plan to fraudulently apply for PPP loans, and get kickbacks from others in return for his help applying for loans for themselves. None of the funds provided on any of the fraudulent applications went toward the businesses named, and went into Smallwood's personal accounts.
Finally, Smallwood allegedly engaged in a plan to a claim false refunds from the IRS, including fake W-2 forms from people who didn't work for the businesses.
The running back spent six seasons in the NFL, three of which he spent with the Eagles. He was a key rotational piece in the backfield for Philly's 2018 Super Bowl victory. He also played sparsely for the Commanders and Steelers after leaving the Eagles after their Super Bowl win.