Illinois Attorney General Kwame Raoul has secured a guilty plea and restitution from a former state employee embroiled in a Paycheck Protection Program (PPP) loan fraud scheme. Arnita Rudd, a 63-year-old DuPage County resident, admitted to one count of theft by deception, a Class 2 felony. According to an announcement from the Attorney General's office, Rudd was sentenced by DuPage County Circuit Court Judge Mia McPherson to a two-year probation period dubbed second chance and mandated to complete 30 hours of community service in addition to paying over $24,000 in fines, fees, and restitution.
While employed by the state of Illinois, Rudd illicitly received over $20,000 in PPP loans through her business, VARS Transportation, fraudulently inflating her income claims. The Attorney General's office has stated Rudd reported false earnings of more than $96,000 in 2019 to secure the loan—and subsequently, seeking to add insult to injury, she applied for loan forgiveness once employed at the Illinois Department of Veteran's Affairs. Attorney General Raoul condemned such betrayal of trust, emphasizing, "Abuse of Paycheck Protection Program Loans is inexcusable, particularly from government employees working on behalf of the public." These loans provided a lifeline, as Raoul added, “These loans provided a lifeline for many small businesses that otherwise may not have survived the pandemic.”
In a collaborative effort, the Attorney General's office, alongside DuPage County State’s Attorney Bob Berlin's office, spearheaded the investigation and prosecution, underscoring the grave misuse of a program intended to support businesses through unprecedented economic hardship. Berlin reflected on the purpose of the PPP, saying, "The Paycheck Protection Program was created and implemented to help struggling businesses survive in extremely difficult circumstances and not as a personal piggy bank by those with no legitimate need who were looking to game the system." In his statement, Raoul vowed to continue the pursuit of individuals who exploit governmental assistance programs for personal gain.
This guilty plea is the latest of Raoul's aggressive stance against PPP loan fraud, with his office having prosecuted several cases and referred even more to appropriate state attorneys for further action. With businesses across the nation having faced the harsh realities of the pandemic, holding accountable those who subvert aid efforts helps preserve the integrity of these lifelines, ensuring future support reaches those in true need, as highlighted in Assistant Attorney General Mara Somlo's prosecution success for the Public Integrity Bureau.
