Wendell Smallwood, an Eagles running back from 2016 through 2018, has been charged with three felonies related to federal government payments to businesses he ran, according to court documents filed in Delaware. Smallwood allegedly abused programs intended to aid small business owners during the covid-19 pandemic.
Being that it’s Rams week let’s throw back to 2018 when Smallwood scored 2 TDs to help beat them when everyone thought the season was over after another Wentz season ending injury https://t.co/wqG6E9KvUu pic.twitter.com/IqD0G2bO1x
— Fly Eagles Fly Bets (@Fly_EaglesBets) November 21, 2024
Smallwood was the sole member of three limited liability companies organized in Delaware between 2017 and 2020: Taste Buds by Smallwood's LLC, Smallwood Sports Management, and Smallwood Enterprise Properties.
Federal prosecutors allege that Smallwood "devised and intended to devise a scheme to defraud by submitting . . . false and fraudulent loan applications to the [United States Small Business Association (SBA)] in order to obtain funds through the [Economic Injury Disaster Loan (EIDL)] program." They say that Smallwood misrepresented information about his LLCs, such as gross revenues and number of employees, to receive approximately $40,000 in loan proceeds. Prosecutors further allege that none of the EIDL loan proceeds were used for allowable business expenses.
The allegations don't end there.
Prosecutors also say that Smallwood and co-conspirators recruited "at least 13" borrowers interested in obtaining Paycheck Protection Program (PPP) forgivable loans. PPP loan funds were required to be used for payroll, mortgage interest and rent, and utilities. But prosecutors allege that Smallwood and others submitted fraudulent PPP applications on behalf of borrowers, who received a total of approximately $269,000 in loan proceeds. The borrowers then allegedly paid kickbacks to Smallwood and others ranging from $4,000 to $12,000 each.
F—k it Wendell Smallwood London Highlights
pic.twitter.com/uWRXLLQUb0 https://t.co/JkYhBiNnxI
— Jargo (@Jargo26) November 21, 2024
Finally, Smallwood and co-conspirators allegedly recruited several tax filers, prepared false tax information, and submitted it to the IRS. The IRS processed the information as if it were legitimate, and paid out over $110,000 in refunds. Smallwood and others allegedly received kickbacks from the tax scheme as well.
If convicted of all three felonies, Smallwood faces a maximum of 50 years in prison, and will be forced to forfeit any assets that trace back to the ill-gotten funds.
