Man Sentenced to a Year and a Half in Federal Prison for COVID-Relief Fraud

Summary

An August 27, 2025 press release from the U.S. Attorney's Office for the Northern District of Illinois announcing that U.S. District Judge Matthew F. Kennelly sentenced Samuel W. Jackson, 45, formerly of Chicago, to 18 months in federal prison and ordered approximately $1.9 million in restitution. Jackson had pleaded guilty to wire fraud and money laundering charges. The release states that in 2020 he submitted numerous PPP and EIDL applications for businesses he controlled with false employment, payroll and operating expense figures, causing a loss to lenders and the SBA of more than $1.9 million. It says Jackson and others spent the proceeds on personal items, including $500,000 on luxury vehicles, nearly $230,000 at restaurants, bars and entertainment venues, and $116,000 on rent.

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“Man Sentenced to a Year and a Half in Federal Prison for COVID-Relief Fraud.” Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-08-27-man-sentenced-to-a-year-and-a-half-in-federal-prison-for-co-3c6b240b65/, SHA-256 2f6e73e34fabba1206626fcf47e8250f79205f2d2f82a43759b79d14ccf0bdaf.

Full text

CHICAGO — A federal judge in Chicago has sentenced a man to a year and half in prison for scheming to fraudulently obtain nearly $2 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In 2020, SAMUEL W. JACKSON engaged in fraud related to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan program (EIDL)—two sources of relief under the CARES Act. Jackson submitted to lenders and the U.S. Small Business Administration numerous applications on behalf of businesses he controlled. The applications contained false statements and misrepresentations concerning, among other things, the purported businesses’ employment figures, payroll costs, and operating expenses. The fraud scheme caused a loss to lenders and the SBA of more than $1.9 million.
Jackson and others used the loan proceeds for their personal benefit, including $500,000 on luxury vehicles, nearly $230,000 at restaurants, bars, and entertainment venues, and $116,000 on rent.
Jackson, 45, formerly of Chicago, pleaded guilty earlier this year to wire fraud and money laundering charges. On Aug. 20, 2025, U.S. District Judge Matthew F. Kennelly sentenced Jackson to 18 months in federal prison and ordered him to pay approximately $1.9 million in restitution.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the SBA Office of Inspector General.
“Defendant was the hub of a fraudulent scheme,” Assistant U.S. Attorneys Christopher K. Veatch and Branka Cimesa argued in the government’s sentencing memorandum. “Defendant abused a federal program funded by taxpayer money and designed to help those in need.”

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Original: www.justice.gov