Belwood man ordered to pay back nearly $50K in fraudulently obtained PPP loans

BELLWOOD, Ill. — A former Illinois Tollway employee has been ordered to pay nearly $50,000 in restitution for stealing thousands of dollars in Paycheck Protection Program (PPP) loans during the COVID-19 pandemic.

Marcus Smith, a 46-year-old Bellwood resident who pleaded guilty to a felony charge of theft of governmental property, was ordered to pay back nearly $50,000 in restitution and was sentenced to 24 months of second-chance probation, Attorney General Kwame Raoul announced Thursday.

Prosecutors said during the COVID-19 pandemic, while working for the Illinois Tollway, Smith conducted a scheme to fraudulently obtain two PPP loans by falsely claiming that he owned a business.

When Smith applied for the loans, he falsely stated that he was the sole employee of a business he owned and operated.

Smith eventually received the loans, with about $49,999, in 2021.

But an investigation by the Attorney General’s office revealed that Smith was also involved in a second case of fraud in June of 2021, when he fraudulently applied for and received a rent relief grant worth about $18,950.

Prosecutors said Smith managed to obtain the loans by claiming his tenant did not pay rent during the COVID-19 pandemic, but it was later revealed that the tenant was his family member, who also allegedly received $9,500 of the funds. 

The case against Smith began after the Attorney General’s office was notified by the Illinois Tollway’s Office of the Inspector General about potential fraud.

“I am pleased we are holding an individual accountable for taking advantage of assistance programs intended for struggling business owners during the COVID-19 pandemic,” Raoul said. “I will continue to ensure taxpayers receive justice when individuals, especially government workers, exploit critical aid programs to benefit themselves and their bank accounts.”  

According to Raoul, if Smith does not pay the restitution in full by the end of his probation, he could face jail time.