Former Philadelphia Eagles running back, Wendell Smallwood Jr., has been charged by federal authorities for tax fraud and theft of COVID-19 relief funding.
Prosecutors in the case before the District of Delaware allege that Smallwood filed fraudulent applications for COVID-19 relief funding tied to several businesses he owns. The feds also claim he engaged in a kickback conspiracy with others to defraud the government and filed false tax reports, the Delaware News Journal reported.
It is alleged that Smallwood filed for relief funding for defunct businesses or businesses he had only recently created and then filed fraudulent details about those businesses to obtain the funding. In other cases, applications were filed in the names of 13 different business owners, and then those owners were asked to kick back thousands to Smallwood and his accomplices for filing for the fraudulent relief funding, prosecutors said.
Smallwood is also accused of filing false tax documents for other people. He allegedly made false statements about income and deductions in the filings. These false filings resulted in $110,000 in improperly issued tax refunds, prosecutors added.
The former player was charged with three felony counts of wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the Internal Revenue Service.
The charges reportedly carry a 50-year prison sentence, though since Smallwood is a first-time offender, it is unlikely prosecutors will ask for the maximum penalty.
Smallwood’s attorney, Mark B. Sheppard, says the former NFL player is “cooperating fully” with the investigation.
Smallwood, who was drafted by the Philadelphia Eagles in the 2016 NFL Draft and played five seasons with three different teams, retired in 2020.
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