Bourbonnais Woman Sentenced to One Year In Prison for Pandemic-Related Fraud

Summary

A U.S. Attorney's Office, Central District of Illinois press release reports that Octavia Renee Murphy, 37, of Bourbonnais, Illinois, was sentenced on May 19, 2026 to one year in prison and a two-year term of supervised release, and ordered to pay $169,949.97 in restitution to the SBA. Murphy pleaded guilty on January 27, 2026 before U.S. District Judge Colleen R. Lawless to conspiracy to commit wire fraud, wire fraud and money laundering. She admitted recruiting relatives, co-workers and friends to file false EIDL advance and PPP applications, taking kickbacks, and filing false PPP forgiveness applications. The government presented evidence that she led a fourteen-defendant conspiracy while employed by the State of Illinois, and the judge rejected her request for one day in prison. Charges against the remaining thirteen defendants are set for trial on July 6, 2026.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

URBANA, Ill. – A Bourbonnais, Illinois, woman, Octavia Renee Murphy, 37, of the 700 block of Double Jack Street, was sentenced on May 19, 2026, to one year in prison for conspiracy to commit wire fraud, wire fraud, and money laundering. Murphy was also ordered to serve a two-year term of supervised release following her imprisonment and to pay $169,949.97 in restitution to the U.S. Small Business Administration (SBA). On January 27, 2026, Murphy pleaded guilty before U.S. District Judge Colleen R. Lawless in Springfield, Illinois, to conspiring with others to defraud the SBA by submitting false applications for pandemic era relief, namely, Economic Injury Disaster Loan (EIDL) advances and Paycheck Protection Program (PPP) loans. Murphy admitted recruiting relatives, co-workers, and friends to file fraudulent applications for EIDL advances and PPP loans falsely claiming that they operated small businesses prior to and during the pandemic. Murphy admitted that, when those applications were successful, those individuals paid kickbacks to her out of the fraud proceeds. Murphy further admitted that she filed false PPP loan forgiveness applications for those same individuals, as well as attempted to disguise and conceal the PPP loan that she personally received by transferring the money to another account and falsely claiming it was for “payroll”. At the sentencing hearing, the government presented evidence establishing that Murphy was the leader and organizer of a fourteen-defendant conspiracy that defrauded the SBA of $169.949.97 by submitting false EIDL advance and PPP loan applications. The government also established that Murphy was gainfully employed by the State of Illinois at the Shapiro Developmental Center in Kankakee, Illinois, at the time of her fraud and was motivated by greed, not any financial need. During the hearing, Judge Lawless rejected Murphy’s request for a minimum sentence of one day of imprisonment, stating that she could not ignore that Murphy was the leader of this large conspiracy to defraud the SBA and that Murphy’s conduct warranted a sentence of imprisonment. Murphy will remain on bond pending reporting to the Bureau of Prisons at a later date to serve her sentence. “Exploiting a program designed to assist small businesses in staying viable during a crisis is inexcusable.” said Acting United States Attorney Gregory M. Gilmore. “We remain committed to working with our law enforcement partners and protecting the taxpayers by holding these fraudsters accountable for their actions.” “Pandemic relief funds were meant to protect communities during a crisis, not to line the pockets of fraudsters,” said Ryan Presley, Special Agent in Charge of the FBI Springfield Field Office. “By organizing a network to steal from taxpayers, the defendant chose personal greed over public need. This case shows that if you defraud emergency federal programs, we and our partners will hold you accountable.” “Today’s sentencing reflects the coordinated efforts of our office, our investigative partners, and the U.S. Attorney’s Office in addressing fraud involving federal relief programs,” said Basil Demczak, Special Agent in Charge of Amtrak Office of Inspector General’s Central Field Office. “We remain committed to protecting taxpayer funds and holding accountable those who exploited pandemic relief programs intended to support individuals and businesses in need.” The statutory penalties for conspiracy to commit wire fraud and each count of wire fraud are up to thirty years of imprisonment, five years of supervised release, full restitution, and a $250,000 fine. The statutory penalty for money laundering is up to twenty years of imprisonment, three years of supervised release, and a $250,000 fine. Federal charges remain pending against the remaining thirteen defendants, with a trial date of July 6, 2026, scheduled before Judge Lawless in Springfield. The Small Business Administration’s Office of Inspector General has estimated over $200 billion nationwide in fraudulent pandemic-relief payments under the Paycheck Protection Program and Economic Injury Disaster Loans during the COVID-19 pandemic. The case investigation was conducted by the Amtrak Office of Inspector General’s Central Field Office, and the Federal Bureau of Investigation, Springfield Field Office. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.

File and source

File

doj-usao-cdil-press-release-bourbonnais-woman-sentenced-one-year-prison-pandemic-related-2026-05-20.json

Size

5,627 bytes

SHA-256

beb2831b19ab92883b769a6a1ae4f870471f0e9072dd221e02375699c3fa8981

Our copy

doj-usao-cdil-press-release-bourbonnais-woman-sentenced-one-year-prison-pandemic-related-2026-05-20.json

Second copy

Bourbonnais Woman Sentenced to One Year In Prison for Pandemic-Related Fraud

Original

www.justice.gov