A former Chicago Public Schools chief operating officer is now facing federal fraud charges over pandemic-relief loans she allegedly obtained by misstating income from a side business. The case revives a 2023 CPS scandal involving staffers who were accused of tapping money meant for struggling small businesses.
Crystal Cooper, who once served as CPS chief operating officer, was charged in May with three counts of wire fraud, according to the Chicago Sun-Times. A recently unsealed indictment alleges that Cooper applied for two loans through the Paycheck Protection Program and the Economic Injury Disaster Loan program beginning in June 2020, falsely reported income and business revenue, and received more than $28,000 for her personal use.
The Indictment Follows An Earlier CPS Watchdog Investigation
The allegations echo findings from the Chicago Board of Education Office of Inspector General, which reported in 2023 that 14 CPS employees had used falsified applications to obtain forgivable PPP loans. The watchdog said most of those employees held leadership roles or earned six-figure salaries, and 12 had resigned or been terminated while CPS pursued action against two others, according to the CPS inspector general report.
The district investigation reviewed more than 780 full-time salaried employees who had received PPP loans, though the watchdog cautioned that some loans may have been legitimate or connected to identity theft. WTTW News reported that the inspector general recommended CPS require prospective employees to disclose pandemic-relief funding as part of the hiring process.
Chicago-Area Officials Are Still Facing Relief-Fraud Cases
Cooper’s case arrives as Illinois authorities continue pursuing alleged misuse of pandemic aid by public employees. In February, Illinois Attorney General Kwame Raoul announced that a former Cook County sheriff’s office employee pleaded guilty to forging a PPP application, received $35,833 in restitution, and admitted to claiming a nonexistent business, according to the Illinois attorney general’s office.
Cooper Has Pleaded Not Guilty
Cooper pleaded not guilty at her first court appearance late last month and was released on a $10,000 bond. Her next court date is scheduled for Aug. 27, while her attorney, Andrew Erskine, declined to comment, the Sun-Times reported.
The charges remain allegations, and Cooper is presumed innocent unless prosecutors prove the case in court. But the timing underscores how Chicago’s pandemic-loan investigations have stretched well beyond the emergency that created the programs in the first place.
