Former Philadelphia Eagles running back Wendell Smallwood Jr. has been indicted by federal authorities on charges of tax evasion and theft of COVID-19 relief funds.
Prosecutors in the Delaware District Court case allege that Smallwood fraudulently applied for COVID-19 relief funds related to multiple businesses he owned. Federal authorities also allege that he conspired with others to take kickbacks, defraud the government and file false tax returns. Delaware State News Journal reported.
Smallwood is alleged to have applied for relief funds for defunct and recently established businesses and submitted fraudulent details about those businesses in order to obtain the funds. In another case, applications were filed in the names of 13 different business owners who were asked to repay thousands of dollars to Mr. Smallwood and his accomplices for fraudulent relief fund applications. said the prosecutor.
Smallwood is also suspected of filing false tax forms on behalf of others. It is suspected that he made false statements regarding his income and deductions on his tax return. These false statements resulted in a $110,000 tax refund being improperly filed, prosecutors added.
The former player was charged with three felonies: wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the Internal Revenue Service.
The charge reportedly carries a penalty of 50 years in prison, but prosecutors are unlikely to seek the maximum sentence because Smallwood is a first-time offender.
Smallwood's attorney, Mark B. Shepherd, said the former NFL player is “fully cooperating” with the investigation.
Smallwood, who was selected by the Philadelphia Eagles in the 2016 NFL Draft and played five seasons with three different teams, retired in 2020.
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