Wendell Smallwood Jr., a former running back for the Philadelphia Eagles, is facing serious legal repercussions after federal prosecutors in Delaware announced on Thursday that he allegedly engaged in fraudulent activities to illegally obtain tens of thousands of dollars from two government COVID-19 relief programs. In addition, Smallwood reportedly orchestrated a complex kickback scheme involving several accomplices, where they falsified loan applications and manipulated tax documents amid the ongoing pandemic.
At 30 years old, Smallwood is confronted with multiple charges stemming from criminal acts that allegedly took place during 2020 and 2021, which coincides with the latter two seasons of his six-year career in the NFL. Originally from Wilmington, Delaware, Smallwood was residing in Mullica, New Jersey, at the time the fraud efforts unfolded, as highlighted by prosecutors.
The federal investigation revealed that Smallwood executed a scheme to defraud both the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). EIDL, which is managed by the Small Business Administration (SBA), was designed to provide low-interest loans aimed at assisting businesses, renters, and homeowners grappling with financial difficulties due to the pandemic. Meanwhile, the PPP was intended to offer financial support to help cover payroll and essential operational costs for businesses, including those run by sole proprietors.
According to prosecutors, Smallwood allegedly submitted EIDL applications for entities that were either defunct or recently established, egregiously misrepresenting their financial health and operational details. Throughout the examination period, he is claimed to have received a staggering total of $46,000 in fraudulent loans, which he reportedly diverted for personal expenses rather than directing the funds toward his supposed business ventures.
The charging documents acquired by the News Journal in Delaware indicate that Smallwood additionally defrauded the PPP by collaborating with an unnamed individual to secure loans that totaled approximately $269,000. At least 13 fraudulent applications were submitted for non-existent sole proprietors with fabricated business details and artificially inflated revenue figures, as prosecutors outlined. This conspiracy was further complicated by a kickback arrangement, which redistributed loan proceeds among the participating sole proprietors.
Smallwood reportedly received several kickbacks from the PPP loans, with individual amounts ranging from $4,000 to as much as $12,000.
In a further twist, in addition to the fraudulent activity related to the relief programs, Smallwood allegedly engaged in a tax fraud conspiracy involving the submission of falsified tax returns to the IRS. The modified returns included deceptive claims for nearly $222,000 in tax refunds, prosecutors noted. The IRS mistakenly processed many of these returns as legitimate, issuing in excess of $110,000 in fraudulent refund checks.
Smallwood entered the NFL as the Eagles’ fifth-round draft pick in 2016, showcasing his talents for three seasons in Philadelphia. He also had playing stints with the Washington Football Team, the Pittsburgh Steelers, and the Jacksonville Jaguars throughout his career, earning approximately $3 million overall, according to Spotrac.
Since the onset of the pandemic, over 3,500 individuals have been charged with federal offenses related to COVID-19 relief program fraud. A report from the Justice Department’s COVID-19 Fraud Enforcement Task Force released in April indicated that more than $1.4 billion in misappropriated pandemic relief funds has been recovered to date. Furthermore, a report from the Office of Inspector General for the SBA released last year estimated that approximately $200 billion in potentially fraudulent loans and other forms of assistance are connected to these COVID-19 relief initiatives.
Smallwood is now facing felony charges that include wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the IRS. His attorney, Mark B. Sheppard, stated to the News Journal that Smallwood is cooperating with investigators as he prepares for an upcoming court appearance scheduled for December.
What specific fraudulent activities did Wendell Smallwood allegedly engage in to secure COVID-19 relief funds?
**Interview with Legal Analyst on Wendell Smallwood’s COVID-19 Fraud Case**
**Interviewer:** Welcome, everyone. Today, we have a special guest, David Reynolds, a legal analyst specializing in white-collar crime. We’re discussing the recent news surrounding Wendell Smallwood Jr., the former Philadelphia Eagles running back, who is now facing serious charges related to fraudulent activities during the pandemic. Thank you for joining us, David.
**David Reynolds:** Thank you for having me. It’s certainly a troubling situation for Smallwood.
**Interviewer:** To start, could you summarize the allegations against Wendell Smallwood?
**David Reynolds:** Absolutely. Smallwood is facing multiple felony charges for allegedly engaging in fraudulent activities to obtain nearly $315,000 from two government COVID-19 relief programs: the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). Prosecutors claim he submitted false loan applications, misrepresenting financial details and inventing businesses to mask his actions [[1](https://theeagleswire.usatoday.com/2024/11/21/eagles-news-wendell-smallwood-prison-covid-19-tax-fraud/)].
**Interviewer:** How did Smallwood supposedly orchestrate this scheme?
**David Reynolds:** The investigation indicates that Smallwood not only applied for loans through defunct or recently established entities, but he also collaborated with accomplices in a kickback scheme. This involved approximately 13 fraudulent applications for nonexistent businesses, where they falsified revenue figures to inflate their eligibility for the loans [[1](https://theeagleswire.usatoday.com/2024/11/21/eagles-news-wendell-smallwood-prison-covid-19-tax-fraud/)]. It seems they redistributed the loan proceeds among themselves, making the operation quite complex.
**Interviewer:** That sounds serious. What are the potential legal repercussions for him if convicted?
**David Reynolds:** Smallwood faces a maximum of 50 years in prison for the charges against him. The gravity of these offenses, especially given the magnitude of the fraud carried out during an economic crisis, is likely to influence the severity of the penalties he might face [[1](https://theeagleswire.usatoday.com/2024/11/21/eagles-news-wendell-smallwood-prison-covid-19-tax-fraud/)].
**Interviewer:** It’s shocking to see someone with an NFL background involved in such activities. What impact do you think this will have on his legacy?
**David Reynolds:** It’s certainly a tarnishing factor for any athlete’s reputation. Smallwood previously had a promising career in the NFL, but this situation might overshadow his accomplishments on the field. The public perception can drastically shift when a former sports figure is involved in criminal activities, especially relating to pandemic relief efforts that were meant to help struggling individuals and businesses [[1](https://theeagleswire.usatoday.com/2024/11/21/eagles-news-wendell-smallwood-prison-covid-19-tax-fraud/)].
**Interviewer:** Thank you, David, for your insights today. It will be interesting to see how this situation unfolds for Wendell Smallwood in the coming months.
**David Reynolds:** Thank you for having me. It’s definitely a story to watch closely.
**Interviewer:** And thank you to our audience for tuning in. We’ll keep you updated on this case. Stay safe and informed!
