ATTORNEY GENERAL RAOUL CHARGES FORMER CTA EMPLOYEE OVER FRAUDULENT PAYCHECK PROTECTION PROGRAM LOANS

ATTORNEY GENERAL RAOUL CHARGES FORMER CTA EMPLOYEE OVER FRAUDULENT PAYCHECK PROTECTION PROGRAM LOANS

June 26, 2024

Chicago - Attorney General Kwame Raoul charged a suburban Cook County man on Tuesday alleging he fraudulently received two Paycheck Protection Program (PPP) loans for over $46,000 while employed by the Chicago Transit Authority (CTA).

The Attorney General's office charged Cory Fox, 50, of Oak Forest, Illinois with one count of theft by deception exceeding $10,000 and not exceeding $100,000, a Class 2 felony punishable by up to seven years in prison; one count of loan fraud, a Class 2 felony punishable by up to seven years in prison; three counts of forgery, Class 3 felonies punishable by up to five years in prison; and one count of income tax fraud, a Class 4 felony punishable by up to three years in prison. Fox's next court appearance is scheduled for Aug. 7.

Sentences are ultimately determined by the court.

"COVID-era assistance programs were vital for the survival of millions of unemployed Americans and small businesses. It is unconscionable any individual - especially those employed by state and local government agencies who work on behalf of Illinois taxpayers - would take advantage of these programs for their own financial gain," Raoul said. "I will continue to ensure all current and former government employees who took advantage of the pandemic to steal from loan programs are held accountable."

Attorney General Raoul's office alleges Fox was employed by the CTA when he fraudulently applied for two PPP loans under the business name "Cory Fox." Raoul's indictment alleges Fox received a PPP loan of $18,355 on Feb. 19, 2021 from the U.S. Small Business Administration (SBA) for what he claimed was a business with an average monthly payroll of $7,342. According to Raoul's indictment, Fox also applied for and received loan forgiveness in August and September 2021, stating a majority of the funds had been used on his business' payroll costs.

Raoul also alleges Fox fraudulently applied for and received a second PPP loan of $28,115 on April 9, 2021 from the SBA, claiming his business had an average monthly payroll of $8,033.

The Attorney General's office is prosecuting this case based on a referral from the Office of the Executive Inspector General.

The charges filed against Fox are the most recent actions Attorney General Raoul has taken to hold individuals accountable for fraudulently collecting government assistance related to the pandemic. Raoul's office is also prosecuting the following government employees for similar PPP loan fraud:

• Candice Brumfield, 34, of Woodridge, Illinois Department of Employment Security (IDES)
• Arnita Rudd, 63, of Oak Lawn, Illinois Department of Veteran's Affairs (IDVA)
• Kiara Brown, 31 of Chicago, Cook County Sheriff's Office
• Kimberly Dale, 51 of Chicago, Illinois Department of Human Services (IDHS)
• Lakeitha Day, 47 of Homewood, IDHS
• Taronn Guyton, 48 of Hazel Crest, IDHS
• Bernita Jenkins, 44 of Chicago, Department of Child and Family Services (DCFS)
• Joshua Johnson, 36 of Tinley Park, Illinois Department of Corrections (IDOC)
• Deborah Jones, 36 of Chicago, DCFS
• Christina Reese, 35 of Schaumburg, DCFS
• Jareli Reyes, 32 of Cicero, Cook County Sheriff's Office
• Nina Robinson, 43 of Lansing, IDVA
• Walter Thomas, 47 of Harvey, Illinois Toll Highway Authority
• John Williams, 46 of Monee, Cook County Sheriff's Office

The public is reminded the defendant is presumed innocent until proven guilty in a court of law.

Assistant Attorney General Tori Whitman is prosecuting the case for Raoul's Criminal Prosecutions and Trials Assistance Bureau.