Oak Lawn woman learns sentence for fraudulently obtaining more than $20K in PPP loans

OAK LAWN, Ill. - A 64-year-old woman from Oak Lawn has been sentenced after pleading guilty to fraudulently obtaining more than $20,000 in Paycheck Protection Program (PPP) loans while employed by the state of Illinois.

Arnita Rudd admitted to one felony count of theft by deception, according to Illinois Attorney General Kwame Raoul.

In June 2021, Rudd obtained a PPP loan for over $20,000 from the U.S. Small Business Administration under the name "Arnita Rudd, doing business as VARS Transportation." 

Prosecutors said she falsely claimed the business earned more than $96,000 in gross income in 2019.

Rudd later applied for and received loan forgiveness while employed by the Illinois Department of Veterans’ Affairs (IDVA), according to the Attorney General’s office.

"Abuse of Paycheck Protection Program Loans is inexcusable, particularly from government employees working on behalf of the public. These loans provided a lifeline for many small businesses that otherwise may not have survived the pandemic," said Raoul. "I will continue to ensure all current and former government employees who took advantage of the pandemic to steal from critical assistance programs are held accountable."

Rudd was sentenced to two years of second chance probation and ordered to perform 30 hours of community service. She must also pay over $24,000 in restitution, fines and fees.