Kwame Raoul, the Attorney General for Illinois, announced charges against a Cook County resident in connection with fraudulent Paycheck Protection Program (PPP) loans. The accused, Kelly Newman, allegedly obtained two PPP loans totaling $40,000, while working as an employee of the U.S. Postal Service.
Raoul's office charged Newman with three counts of theft by deception of more than $10,000, and three counts of loan fraud, both classified as Class 2 felonies. These charges could lead to up to seven years in prison. Additionally, Newman faces four counts of forgery, Class 3 felonies, which carry a potential five-year sentence. Court sentences, however, will be concurrent and decided by the presiding judge. Newman's court appearance is scheduled for May 13.
“It is disappointing anyone employed by the federal government would take advantage of the federal COVID-era assistance programs,” Raoul stated. “These loans were intended to help small businesses and unemployed Americans survive the pandemic. I will continue to hold public workers accountable for abusing these critical programs to line their own pockets.”
According to the Attorney General's claims, Newman submitted false information to acquire two PPP loans from the U.S. Small Business Administration, alleging ownership of a non-existent business. These activities resulted in loan disbursements of $20,000 each in July 2020 and January 2021.
The charges brought against Newman arose from a referral by the U.S. Postal Service - Office of the Inspector General (OIG), which initiated this investigation related to alleged workers' compensation fraud. Dennus Bishop, Special Agent in Charge of the Central Area Field Office for the U.S. Postal Service - OIG, emphasized addressing system abuse, stating: “The U.S. Postal Service paid $1.5 billion in workers’ compensation costs in fiscal year 2024. The majority of postal employees who collect compensation benefits have legitimate claims... However, a small percentage abuse the system and cost the Postal Service millions of dollars in fraudulent claims and enforcement costs. Today’s charges send a clear message that the USPS OIG and the Illinois Attorney General’s Office remain committed to safeguarding the integrity of benefit programs and ensuring the accountability and integrity of U.S. Postal Service employees.”
These recent charges form part of broader efforts by Attorney General Raoul to address fraudulent government assistance collection during the pandemic. His office has also prosecuted many others for similar PPP loan fraud and has referred more cases to state prosecutors for further action.
The accused is presumed innocent unless proven guilty in a court of law. Assistant Attorneys General Haley Bookhout and Mara Somlo from Raoul’s Public Integrity Bureau are handling the prosecution.
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