Attorney General Raoul Charges Former State Employees over Fraudulent Paycheck Protection Program Loans (Illinois Attorney General, June 4, 2024)

Summary

A press release of the Office of the Illinois Attorney General, Kwame Raoul, announcing charges against two DuPage County women who allegedly fraudulently received Paycheck Protection Program loans of over $20,000 while employed by the state of Illinois. It states that Candice Brumfield is charged with theft by deception, loan fraud, wire fraud, four counts of forgery and income tax fraud, with the next court appearance July 31, and that Arnita Rudd is charged with theft by deception, loan fraud, wire fraud, three counts of forgery and income tax fraud. It lists the felony classes and maximum prison terms for each count and notes that defendants are presumed innocent unless proven guilty.

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Office of the Illinois Attorney General Kwame Raoul

Chicago – Attorney General Kwame Raoul today charged two DuPage County women, alleging both women fraudulently received Paycheck Protection Program (PPP) loans for over $20,000 while employed by the state of Illinois.

The Attorney General’s office charged Candice Brumfield, 34, of Woodridge, 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; one count of wire fraud, a Class 3 felony punishable by up to five years in prison; four 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. Brumfield’s next court appearance is July 31.

Raoul’s office also charged Arnita Rudd, 63, of Oak Lawn, Illinois with one count of theft by deception of less than $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; one count of wire fraud, a Class 3 felony punishable by up to five 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. Rudd’s next court appearance is August 5.

Sentences are ultimately determined by the court.

“Paycheck Protection Program Loans were a lifeline for many small businesses that otherwise would not have survived the pandemic. Abuse of these funds is inexcusable, but it particularly shameful when those funds are abused by government employees,” Raoul said. “The people of Illinois should be able to trust that public employees are working on behalf of the public. 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 Brumfield was employed by the Illinois Department of Employment Security (IDES) when she fraudulently applied for a PPP loan under the business name, “Candice Brumfield.” Raoul’s indictment alleges she received a PPP loan of more than $20,000 in April 2021 from the U. S. Small Business Administration (SBA) for what she claimed was a nursing or residential care business. At the time, Brumfield allegedly reported being the only employee; however, she later reported having five employees and claimed the business earned a total gross income of more than $97,000 in 2019. According to Raoul’s indictment, Brumfield also applied for and received loan forgiveness in November 2021. Brumfield also allegedly submitted false statements in a July 2020 application to receive a Disaster COVID-19 Economic Injury Disaster (EID) Loan, resulting in her receiving more than $8,000 for another business named “Sassy Hands.”

Raoul’s office alleges Rudd fraudulently received a PPP loan for more than $20,000 from the SBA in June 2021 for her business “Arnita C. 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 will co-prosecute both cases with DuPage County State’s Attorney Bob Berlin’s office.

“The pandemic hit small businesses throughout the state extremely hard, with some businesses surviving while others could not,” Berlin said. “The money available through the Paycheck Protection Program was intended to help businesses stay afloat and not to line the pockets of dishonest actors, as alleged against these defendants. What I find particularly upsetting is that the money allegedly taken in these cases could have gone to legitimate businesses struggling to survive in very trying times. I commend Attorney General Raoul and his office for their continued efforts prosecuting white collar crimes, particularly in these cases that allegedly involved government employees. The co-prosecution of these cases is yet another example of our offices working together to weed out any corrupt public employees and protect the integrity of our government institutions.”

The charges filed against Brumfield and Rudd 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:

- 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, Illinois
- Bernita Jenkins, 44 of Chicago, Department of Child and Family Services (DCFS)
- Joshua Johnson, 36 of Tinley Park, Illinois Department of Corrections
- 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 defendants are presumed innocent until proven guilty in a court of law.

Deputy Bureau Chief Jonas Harger and Assistant Attorneys General Haley Bookhout, Timothy Nimrod and Mara Somlo are prosecuting the cases for Raoul’s Public Integrity Bureau.

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