A former Illinois state employee has pleaded guilty to income tax fraud after falsely obtaining over $41,000 in Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. Michelle Barnes-Kendall, 56, of Chicago, was sentenced by Cook County Circuit Court Judge Steven Watkins to pay full restitution and serve 24 months of second chance probation. She must also complete 30 hours of community service.
According to Attorney General Kwame Raoul’s office, Barnes-Kendall worked as a child support specialist at the Illinois Department of Healthcare and Family Services (HFS) when she applied for two PPP loans in 2021. In her applications, she claimed to be the owner, operator, and sole employee of a beauty salon. The total amount received from the loans was approximately $41,666.
Authorities stated that Barnes-Kendall reported business income on federal tax documents but did not report any such profit to the Illinois Department of Revenue on her personal tax forms.
“Paycheck Protection Program loans were intended for struggling business owners during the COVID-19 pandemic, and it is unacceptable that anyone would take advantage of this crucial assistance program,” said Attorney General Raoul. “I will continue to hold individuals, especially government workers, accountable if they exploited critical aid programs for their own financial benefit.”
The case came to light following a referral from the Illinois Office of the Executive Inspector General. Assistant Attorney General Tori Whitman prosecuted the case for Raoul’s Criminal Prosecutions and Trial Assistance Bureau.
