Illinois postal workers accused of faking business to cash in on COVID-19 relief

CHICAGO - An Illinois couple is facing charges after allegedly obtaining two Paycheck Protection Program (PPP) loans exceeding $40,000 each while collecting federal disability benefits and working for the U.S. Postal Service.

Genesis Sherrod, 46, of Roselle, faces one count of theft of government property by deception of more than $10,000, three counts of theft by deception of more than $10,000, three counts of loan fraud, one count of theft by deception of more than $500, five counts of forgery and one count of income tax fraud.

Randall Walker, 55, of Roselle, was also charged with three counts of theft by deception of more than $10,000, two counts of loan fraud, five counts of forgery and one count of income tax fraud.

The backstory:

According to Illinois Attorney General Kwame Raoul's office, Sherrod and Walker were both on disability leave and earning federal disability benefits from their jobs with the U.S. Postal Service when they fraudulently applied for two PPP loans from the U.S. Small Business Administration.

They claimed they owned a business that did not exist.

In 2021, Sherrod allegedly received $49,999 and Walker received $41,666 based on fraudulent applications.

They also did not disclose the loans on their federal benefit forms.

What they're saying:

Illinois Attorney General Kwame Raoul condemned the postal workers' alleged fraud, calling their actions "shameful."

"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. 

"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."

Special Agent-in-Charge Dennus Bishop of the U.S. Postal Service Office of Inspector General also weighed in on the case.

"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. 

"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."

Big picture view:

The charges are the latest effort by Attorney General Raoul to hold individuals accountable for fraudulently obtaining pandemic-related government assistance. 

His office has prosecuted dozens of people for PPP loan fraud and has referred additional cases to state's attorneys for further review.

What's next:

Sherrod and Walker’s next court date is April 21.