Raoul Alleges Husband, Wife Applied for Loans While Receiving Federal Disability Benefits
Chicago – Attorney General Kwame Raoul charged a Roselle, Illinois husband and wife who each allegedly received two Paycheck Protection Program (PPP) loans for over $40,000 while they were also receiving federal disability benefits and employed by the U.S. Postal Service.
“It is shameful that two federal employees would take advantage of the federal COVID-era assistance programs intended to help small businesses and unemployed Americans survive the pandemic,” Raoul said. “Federal disability benefits and PPP loans are intended to provide support to vulnerable Americans, and I will continue to hold public workers accountable for using these critical programs as their own slush funds.”
The Attorney General’s office charged Genesis Sherrod, 46, one count of theft of government property by deception of more than $10,000, a both Class 1 felony punishable by up to 15 years in prison; 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; one count of theft by deception of more than $500 and five counts of forgery, which are all Class 3 felonies punishable by up to five years in prison; and one count of income tax fraud, a Class 4 felony punishable by up to three years in prison.
Randall Walker, 55, was also charged with; three counts of theft by deception of more than $10,000 and two counts of loan fraud, which are all Class 2 felonies punishable by up to seven years in prison; five counts of forgery, Class 3 felonies punishable by up to five years in prison; and one count of income tax fraud, a Class 4 felony punishable by up to three years in prison.
Sherrod and Walker’s next court date is April 21. Sentences are served consecutively and are ultimately determined by the court.
Attorney General Raoul’s office alleges Sherrod and Walker were both on disability leave and earning federal disability benefits from their jobs with the Postal Service when they each fraudulently applied for two PPP loans from the U.S. Small Business Administration by claiming that they owned businesses that did not exist. According to Raoul’s office, in 2021 Sherrod received $49,999 and Walker received $41,666 based on their fraudulent applications but did not disclose the loans on their federal benefit forms.
The Attorney General’s office is prosecuting the cases based on a referral from the U.S. Postal Service – Office of the Inspector General (OIG).
“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 percent abuses 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 Office of Inspector General. “Today’s charges send a clear message that workers compensation and the abuse of the Cares Act are crimes, which carry serious consequences. The USPS OIG and the Illinois Attorney General’s Office remain committed to safeguarding the integrity of these 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 Attorney General Haley Bookhout is prosecuting the cases for Raoul’s Public Integrity Bureau.
