Chicago – Attorney General Kwame Raoul charged a Cook County woman alleging she fraudulently received two Paycheck Protection Program (PPP) loans for $40,000 while employed by the U.S. Postal Service.
The Attorney General’s office charged Kelly Newman, 37, of Chicago with three counts of theft by deception of more than $10,000 and three counts of loan fraud, which are all Class 2 felonies punishable by up to seven years in prison; and four counts of forgery, which are Class 3 felonies punishable by up to five years in prison. Sentences will be served concurrently and are ultimately determined by the court. Newman’s next court date is May 13.
“It is disappointing anyone employed by the federal government would take advantage of the federal COVID-era assistance programs,” Raoul said. “These loans were intended to help small businesses and unemployed Americans survive the pandemic. I will continue to hold public workers accountable for abusing these critical programs to line their own pockets.”
Attorney General Raoul’s office alleges Newman was employed by the Postal Service when she fraudulently applied for two PPP loans from the U.S. Small Business Administration by falsely claiming she owned a business that did not exist. According to Raoul’s office, Newman received $20,000 in July 2020 and $20,000 in January 2021 as a result.
The Attorney General’s office is prosecuting this case based on a referral from the U.S. Postal Service – Office of the Inspector General (OIG), which was initially looking into alleged workers’ compensation fraud.
“The U.S. Postal Service paid $1.5 billion in workers’ compensation costs in fiscal year 2024. The majority of postal employees who collect compensation benefits have legitimate claims due to on-the-job injuries and are truly unable to perform any postal jobs. However, a small percentage abuse the system and cost the Postal Service millions of dollars in fraudulent claims and enforcement costs,” said Special Agent in Charge Dennus Bishop, Central Area Field Office, U.S. Postal Service – OIG. “Today’s charges send a clear message that the USPS OIG and the Illinois Attorney General’s Office remain committed to safeguarding the integrity of benefit programs and ensuring the accountability and integrity of U.S. Postal Service employees.”
The charges are the most recent actions Attorney General Raoul has taken to hold individuals accountable for fraudulently collecting government assistance related to the pandemic. Raoul’s office has prosecuted dozens of individuals for PPP loan fraud and referred other investigations to the appropriate state’s attorneys for further evaluation.
The public is reminded that the defendants are presumed innocent until proven guilty in a court of law.
Assistant Attorneys General Haley Bookhout and Mara Somlo are prosecuting the cases for Raoul’s Public Integrity Bureau.
