Formally charged NFL player Wendell Smallwood Jr., a former Philadelphia Eagles runner, receives a prison sentence for perpetrating COVID-19 related financial fraud schemes
Wendell Smallwood, a former National Football League (NFL) player, was sentenced in a U.S. District Court in Wilmington after pleading guilty to wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the Internal Revenue Service (IRS) in December.
Smallwood's crimes, according to the prosecutor's memo, were not a momentary lapse of judgment but rather a lengthy, years-long, and evolving participation in various schemes to steal money from the government.
During the COVID-19 pandemic, Smallwood registered several companies that he used to commit fraud. However, these companies were not actually operated during the pandemic. Smallwood submitted bogus Paycheck Protection Program (PPP) applications for his own three entities, stealing another $220,000. He also recruited 13 others who weren't filing tax returns and filed fake forms for them, netting an additional $110,200.
The 13 individuals Smallwood recruited received fraudulent PPP loans totalling $269,200, each paying him kickbacks of between $4,000 and $12,000.
Smallwood's defense attorney, Mark Sheppard, argued for home confinement and probation for his client. Sheppard stated that Smallwood had gone into substance abuse and mental health treatment before his 2023 arrest and should continue with his private therapists rather than be in prison.
Assistant U.S. Attorney Jennifer Welsh, however, urged a 33-month prison term. The judge, recognising the seriousness of Smallwood's crimes, handed down a sentence less than the 33 to 41 months recommended in federal sentencing guidelines. The judge called Smallwood's crimes "very serious" and stated that the record shows that Smallwood had tried to pilfer about $900,000 from the government over a period of a few years.
Smallwood was arrested in October 2024 on charges that he organized and directed three separate fraud schemes. The details of these schemes have yet to be disclosed.
The sentencing marks the end of a long legal battle for Smallwood, who once played for teams like the Philadelphia Eagles and the New York Giants.
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