Attorney General Kwame Raoul has secured a guilty plea from Arnita Rudd, a former state employee, in a case involving fraudulent acquisition of Paycheck Protection Program (PPP) loans. Rudd, 63, from Oak Lawn, Illinois, was prosecuted for obtaining over $20,000 in PPP loans while employed by the state of Illinois. She pleaded guilty to theft by deception, classified as a Class 2 felony.
DuPage County Circuit Court Judge Mia McPherson sentenced Rudd to two years of second chance probation. In addition to her probationary period, she is required to perform 30 hours of community service and pay more than $24,000 in restitution along with fines and fees.
"Abuse of Paycheck Protection Program Loans is inexcusable, particularly from government employees working on behalf of the public," said Attorney General Raoul. "These loans provided a lifeline for many small businesses that otherwise may not have survived the pandemic."
The Attorney General's office alleged that Rudd received the loan under false pretenses for her business "Arnita Rudd, doing business as VARS Transportation." It was claimed she misrepresented her business earnings as more than $96,000 in 2019. The office also stated that she sought loan forgiveness after joining the Illinois Department of Veteran’s Affairs.
Raoul’s office collaborated with DuPage County State’s Attorney Bob Berlin’s office on this investigation and prosecution. Berlin commented on the misuse of PPP funds: “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.”
This case adds to several actions taken by Attorney General Raoul against individuals fraudulently obtaining government assistance during the pandemic. His office has prosecuted numerous cases related to PPP loan fraud and has referred other cases for further evaluation by relevant state attorneys.
Assistant Attorney General Mara Somlo handled the prosecution within Raoul's Public Integrity Bureau.