An Illinois man has been sentenced to 18 months in federal prison for fraudulently obtaining nearly $2 million in COVID-19 relief funds intended for small businesses, and he has been ordered to pay back about $1.9 million in restitution. The case underscores the federal government’s continued efforts to safeguard the integrity of pandemic aid programs and ensure funds reach legitimate businesses in need.
Samuel W. Jackson, 45, formerly of Chicago, carried out the fraud in 2020 by submitting multiple false applications for loans through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. According to court filings, Jackson misrepresented payroll costs, employee counts, and operating expenses on behalf of businesses he controlled, causing more than $1.9 million in losses to lenders and the SBA.
Instead of supporting businesses, Jackson and others used the funds for personal gain. Prosecutors said more than $500,000 went to luxury vehicles, nearly $230,000 to restaurants, bars, and entertainment venues, and $116,000 to rent. Jackson pleaded guilty earlier this year to wire fraud and money laundering. On August 20, 2025, U.S. District Judge Matthew F. Kennelly handed down the sentence.
The case was announced by U.S. Attorney Andrew S. Boutros for the Northern District of Illinois and FBI Special Agent-in-Charge Douglas S. DePodesta, with substantial assistance from the SBA Office of Inspector General. In their sentencing memorandum, federal prosecutors argued that Jackson was “the hub of a fraudulent scheme” and had abused programs funded by taxpayers and designed to help struggling businesses.
Authorities emphasized that this case is part of broader enforcement efforts to hold accountable those who exploited emergency relief programs during the pandemic. The SBA OIG and the Department of Justice continue to investigate and prosecute COVID-19 relief fraud nationwide, warning that individuals who misused funds face serious legal consequences.