Oak Lawn Woman Learns Sentence for Fraudulently Obtaining More Than $20K in PPP Loans
Investigation and Plea Agreement
A 64-year-old woman from Oak Lawn has been sentenced after pleading guilty to fraudulently obtaining more than $20,000 in Paycheck Protection Program (PPP) loans while employed by the state of Illinois. Arnita Rudd admitted to one felony count of theft by deception, according to Illinois Attorney General Kwame Raoul.
Fraudulent Loan Application
In June 2021, Rudd obtained a PPP loan for over $20,000 from the U.S. Small Business Administration under the name “Arnita Rudd, doing business as VARS Transportation.” Prosecutors said she falsely claimed the business earned more than $96,000 in gross income in 2019.
Loan Forgiveness and Employment
Rudd later applied for and received loan forgiveness while employed by the Illinois Department of Veterans’ Affairs (IDVA), according to the Attorney General’s office. “Abuse of Paycheck Protection Program Loans is inexcusable, particularly from government employees working on behalf of the public,” said Raoul. “These loans provided a lifeline for many small businesses that otherwise may not have survived the pandemic. I will continue to ensure all current and former government employees who took advantage of the pandemic to steal from critical assistance programs are held accountable.”
Sentencing
Rudd was sentenced to two years of second chance probation and ordered to perform 30 hours of community service. She must also pay over $24,000 in restitution, fines and fees.
Conclusion
The case serves as a reminder of the importance of transparency and accountability when it comes to government employees and public funds. It is crucial that those in positions of trust do not abuse their authority and compromise the integrity of the system.
FAQs
Q: What was Arnita Rudd’s role when she fraudulently obtained the PPP loan?
A: Rudd was employed by the Illinois Department of Veterans’ Affairs (IDVA) at the time she fraudulently obtained the PPP loan.
Q: How much did Rudd receive in the PPP loan?
A: Rudd received a PPP loan for over $20,000.
Q: What was the alleged false claim made by Rudd?
A: Rudd allegedly claimed that her business earned more than $96,000 in gross income in 2019.
Q: What was Rudd’s sentence?
A: Rudd was sentenced to two years of second chance probation and ordered to perform 30 hours of community service, and pay over $24,000 in restitution, fines and fees.
