Former NFL linebacker pleads guilty to COVID-19 fraud

Former Philadelphia Eagles defensive end Wendell Smallwood Jr. recently made headlines after pleading guilty fraud accusation. This case highlights the serious consequences of fraud, especially in the context of financial aid programs created during COVID 19 pandemic.

Case details

On December 20, 2024, Smallwood appeared in court in Delaware, where he pleaded guilty to filing false tax returns and applications for financial assistance under the COVID-19 relief programs. According to Associated Presshe was able to recover approximately $110,000 through these false documents.

In October, Smallwood was charged with three counts of wire fraud, but a federal judge approved a plea deal. Sentencing is scheduled for May 2025, when he will receive his full sentence.

How the fraud was committed

Prosecutors allege that Smallwood participated in a scheme that involved using nonexistent or newly incorporated businesses to provide false information about their operations. This included fabricating start dates, revenue amounts, expenses and the number of employees. Specifically, he applied for the Economic Disaster Loan Program, obtaining over $46,000 in loans for three businesses that were false.

In a larger fraud attempt, Smallwood applied under the names of at least 13 other individuals to participate in the Payroll Protection Program (PPP). Through those applications, he received nearly $270,000 in loans and kickbacks, prosecutors said.

Smallwood’s response

After pleading guilty, Smallwood’s attorney, Mark Sheppard, said the former NFL player takes full responsibility for his actions. Sheppard stated Philadelphia Inquirer“He admits that this is only the first step to try to make amends with the government and the people closest to him. He will continue to do so.” This admission of wrongdoing is important at trial because it can affect the court’s decision at sentencing.

Smallwood’s NFL career

Smallwood was drafted by the Philadelphia Eagles in 2016 after a successful collegiate career at West Virginia University. He also played for the Pittsburgh Steelers and Washington Redskins during his NFL journey. His career in professional football has been marked by significant achievements, but this recent legal problem has overshadowed his sporting achievements.

Consequences of fraud

Smallwood’s case is a warning about the abuse of financial assistance programs designed to help individuals and businesses in difficult times. The COVID-19 pandemic has prompted the government to implement various relief measures, but unfortunately, it has also opened the door to fraud. The consequences of such actions can be serious, lead to legal consequences and cause reputational damage. It serves as a reminder that while financial assistance programs are important to recovery, they must be used responsibly to ensure that assistance reaches those who truly need it.