ATTORNEY GENERAL RAOUL OBTAINS RESTITUTION FROM FORMER STATE EMPLOYEE WHO PLEADS GUILTY TO PPP LOAN FRAUD

ATTORNEY GENERAL RAOUL OBTAINS RESTITUTION FROM FORMER STATE EMPLOYEE WHO PLEADS GUILTY TO PPP LOAN FRAUD

November 18, 2024

Chicago - Attorney General Kwame Raoul announced today his office obtained a guilty plea in a case against a DuPage County woman who fraudulently received Paycheck Protection Program (PPP) loans for over $20,000 while employed by the state of Illinois.

The Attorney General's prosecuted Arnita Rudd, 63, of Oak Lawn, Illinois who pleaded guilty to one count of theft by deception, a Class 2 felony. DuPage County Circuit Court Judge Mia McPherson sentenced Rudd to two years of second chance probation and ordered her to perform 30 hours of community service and to pay over $24,000 in restitution, fines and fees.

"Abuse of Paycheck Protection Program Loans is inexcusable, particularly from government employees working on behalf of the public. These loans provided a lifeline for many small businesses that otherwise may not have survived the pandemic," Raoul said. "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."

Raoul's office alleges Rudd fraudulently received a PPP loan for more than $20,000 from the U.S. Small Business Administration in June 2021 for her business "Arnita Rudd, doing business as VARS Transportation." According to the Attorney General's office, she falsely claimed the business earned a total gross income of more than $96,000 in 2019. Rudd also allegedly applied for and received loan forgiveness once she was employed at the Illinois Department of Veteran's Affairs (IDVA).

Raoul's office investigated and co-prosecuted this case with DuPage County State's Attorney Bob Berlin's office.

"The Paycheck Protection Program was created and implemented to help struggling businesses survive in extremely difficult circumstances and not as a personal piggy bank by those with no legitimate need who were looking to game the system," Berlin said. "I thank Attorney General Raoul and his team not only for their efforts in this case, but also for their ongoing work in rooting out white collar crimes, particularly those involving government employees, as we saw in this case."

This plea is the most recent action Attorney General Raoul has taken to hold individuals accountable for fraudulently collecting government assistance related to the pandemic. Raoul's office has prosecuted dozens individuals for PPP loan fraud and referred other investigations to the appropriate state's attorneys for further evaluation.

Assistant Attorney General Mara Somlo prosecuted the case for Raoul's Public Integrity Bureau.