Former NFL running back Wendell Smallwood faces up to 50 years in prison, according to CBS News, after authorities charged the 30-year-old with defrauding federal COVID-19 relief funds. Smallwood was a member of the Philadelphia Eagles’ 2017 Super Bowl-winning team.
During the early stages of the coronavirus pandemic, the U.S. Small Business Administration launched Economic Injury Disaster Loans to, per its website, “provide funding to help small businesses recover from the economic impacts” of COVID. EIDL loan funds could be used for working capital and normal operating expenses, it said.
CBS News reports that Smallwood is accused of defrauded COVID-19 relief programs such as EIDL. Court documents filed in the District of Delaware say Smallwood applied for EIDL funds using “defunct or recently registered businesses and claimed false business operations.”
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Sports Illustrated reports that Smallwood received “tens of thousands of dollars” after submitting for relief funds.
Smallwood is also accused of a kickback conspiracy generating between $4,000 to $16,000 in payments, lying to tax authorities, and submitting false information to the Paycheck Protection Program — a loan program that helped small businesses retain employees during COVID.
Prosecutors charged Smallwood with wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the Internal Revenue Service.
“Wendell has cooperated fully with this investigation,” Mark B. Sheppard said, according to Delaware Online. Sheppard, per the local news site, is a Philadelphia attorney who represents Smallwood. “We will have more to say when we appear in December.”
Allegation of COVID fraud is not unique to Smallwood. Earlier this year, for example, the IRS released COVID fraud statistics indicating it was investigating 1,644 tax and money laundering cases regarding pandemic-era fraud which could total $8.9 billion. In March, the IRS said 795 people had been “indicated for their alleged COVID-related crimes,” with “373 individuals … sentenced to an average of 34 months in federal prison.” The conviction rate, per the IRS, was 98.% for prosecuted COVID fraud cases.
Smallwood played in the NFL for a five-year period from 2016 to 2021, representing the Eagles until 2018, before brief stints at Washington Redskins in 2019, Pittsburgh Steelers in 2020, and Jacksonville Jaguars in 2021. His career NFL statistics included 956 rushing yards, 474 receiving yards, and eight total touchdowns.
Smallwood played high school football at Red Lion Christian Academy which is in Bear, Delaware. He played college football at West Viriginia and was drafted in 2016 by the Eagles.
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