Fraud Friday — Illinois State Prison Sergeant Loses Job and Career over $40K PPP Loan Fraud

March 28, 2025

Bob Coleman
Founder & Publisher

Fraud Friday — Illinois State Prison Sergeant Loses Job and Career over $40K PPP Loan Fraud

41 Illinois state employees have been forced to resign or have been terminated from their jobs due to PPP loan fraud that totaled nearly $1 million.

Almost all of them worked for the Illinois Department of Human Services, many in low-level positions. To get the federal money, they claimed they owned businesses ranging from beauty salons to catering companies to ride-share operations, reports Frank Main of the Chicago Sun-Times.

The Inspector General for the Illinois governor recently released a report on the 41 individuals, including two from the Illinois Department of Corrections – in other words, prison guards.

One, James White, was a correctional sergeant at an Illinois state prison, “supervising four to five correctional officers and ensuring the Safety and Security of the individuals in custody and the staff.”

He had held various positions at Stateville Correctional Center since 2016.

James received two PPP loans totaling $41,664. A first draw loan of $20,832 was funded in July 2020 by CrossFirst Bank, and another loan in February 2021 for the same amount.

Included in the application was a Schedule C listing his business as security services with a business code of “security guards and patrol services.”

The 2019 Schedule C listed $100,000 as gross income and $0 in expenses. Also included were several 2020 bank statements.

In 2023, the Inspector General interviewed Mr. White, and he admitted he never owned a business or had been self-employed. He said that in addition to working for the IDOC, he had a side hustle working for a security company. He also admitted he never made the $100,000 listed in his tax return.

James said he used the loan proceeds to pay for a relative’s home repairs and healthcare. “He said he knew the PPP loans he received were not used for the intended purposes. Mr. White confirmed he filled out a forgiveness application for the first loan and it was forgiven. He said he did not realize until recently that he did not complete a forgiveness application for the second loan, so he would have to pay that one back.”

James White has not been indicted or charged with a crime.

The Inspector General concludes: “Regardless of the ease of procuring these PPP funds, this was not free money for the taking. The PPP was a public program set up to provide legitimate small businesses that met certain criteria with public funds to assist during the pandemic. These loans, as with any other, required truthful information as a basis for approval. State employees are expected, at minimum, to maintain the public’s trust and confidence. Misappropriating public funds is far from being ethical, professional, acting with integrity, or conducting oneself in a manner that reflects favorably upon the state. Accordingly, the OEIG recommends that IDOC terminate Mr. White.”