Morris Pasqual, Acting U.S. Attorney | U.S. Attorney's Office for the Northern District of Illinois
Morris Pasqual, Acting U.S. Attorney | U.S. Attorney's Office for the Northern District of Illinois
A Chicago man has been sentenced to 18 months in federal prison for his role in a scheme to fraudulently obtain nearly $2 million in small business loans intended for Covid-19 relief.
Samuel W. Jackson, 45, formerly of Chicago, pleaded guilty earlier this year to wire fraud and money laundering charges. In 2020, Jackson submitted numerous applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds on behalf of businesses he controlled. The applications included false statements about employment figures, payroll costs, and operating expenses.
According to prosecutors, the fraudulent activity resulted in losses exceeding $1.9 million to lenders and the U.S. Small Business Administration (SBA). Jackson and others used loan proceeds for personal benefit, spending $500,000 on luxury vehicles, nearly $230,000 at restaurants, bars, and entertainment venues, and $116,000 on rent.
On August 20, 2025, U.S. District Judge Matthew F. Kennelly handed down the sentence and ordered Jackson to pay approximately $1.9 million in restitution.
The sentencing was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois; Douglas S. DePodesta, Special Agent-in-Charge of the FBI’s Chicago Field Office; with substantial assistance from the SBA Office of Inspector General.
“Defendant was the hub of a fraudulent scheme,” Assistant U.S. Attorneys Christopher K. Veatch and Branka Cimesa argued in the government’s sentencing memorandum. “Defendant abused a federal program funded by taxpayer money and designed to help those in need.”
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