35°
The plea agreement outlines Smallwood's admission of guilt to defrauding COVID-19 relief programs and engaging in tax fraud schemes. Smallwood, 30, faces a maximum sentence of 50 years in prison and significant financial penalties, including restitution.
Court documents allege that Smallwood knowingly submitted false information to secure tens of thousands of dollars in Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds. He used defunct or recently registered businesses in the fraudulent applications, prosecutors said. He was also accused of orchestrating a kickback scheme and submitting falsified tax documents to the IRS.
The Memorandum of Plea Agreement, signed by Smallwood and federal prosecutors, details the charges and potential penalties:
- Counts One and Two (Wire Fraud and Conspiracy to Commit Wire Fraud): Each carries up to 20 years in prison, a $250,000 fine, or twice the gross gain or loss from the offense.
- Count Three (Conspiracy to Defraud the IRS): Carries up to 10 years in prison and similar financial penalties.
Smallwood’s guilty plea acknowledges a loss amount between $250,000 and $550,000 for the wire fraud charges and between $100,000 and $250,000 for the tax fraud. The agreement also includes a two-level enhancement to his sentencing guidelines due to his role as an organizer or leader in the criminal activity.
The sentencing is scheduled for May 2, 2025.
Drafted in the fifth round by the Eagles in 2016, Smallwood was part of the team’s Super Bowl-winning roster in 2018, though he didn’t play in the championship game. A native of Wilmington, Delaware, he later played for Washington and the Pittsburgh Steelers and briefly joined the Jacksonville Jaguars' practice squad in 2021.
See AttachmentClick here to follow Daily Voice Cape May and receive free news updates.
