ATTORNEY GENERAL RAOUL OBTAINS RESTITUTION FROM FORMER STATE CORRECTIONS EMPLOYEE WHO PLEADED GUILTY TO PPP LOAN FRAUD

ATTORNEY GENERAL RAOUL OBTAINS RESTITUTION FROM FORMER STATE CORRECTIONS EMPLOYEE WHO PLEADED GUILTY TO PPP LOAN FRAUD

August 20, 2026

Chicago - Attorney General Kwame Raoul today announced that a former Illinois Department of Corrections (IDOC) employee was sentenced to pay $20,830 in restitution for fraudulently applying for a loan through the Paycheck Protection Program (PPP) during the COVID-19 pandemic.

Arnie Loftis, 41, of Chicago, was sentenced by Cook County Circuit Court Judge Mary M. Brosnahan today after pleading guilty to a Class 3 felony charge of forgery. Loftis was sentenced to 24 months of probation and ordered to pay full restitution of $20,830. After making a $7,000 payment today, Loftis must pay the balance of $13,830 on or before the termination of his probation.

"Federal assistance programs served as a lifeline for small businesses and unemployed Americans during the COVID-19 pandemic, and it is unacceptable that anyone - especially a government employee - would abuse that vital support," Raoul said. "I will continue to ensure taxpayers receive restitution when individuals exploit critical aid programs to benefit themselves and their personal bank accounts."

The case was referred to the Attorney General's office by the Illinois Office of the Executive Inspector General.

According to Raoul's office, Loftis was employed as a corrections officer by the IDOC when he fraudulently applied for and received a PPP loan totaling $20,830 in April 2021.

This plea is the most recent action Attorney General Raoul has taken to hold individuals accountable for fraudulently collecting government assistance related to the pandemic. Raoul's office has prosecuted a number of individuals for PPP loan fraud and referred other investigations to the appropriate state's attorneys for further evaluation.

Assistant Attorney General Kenneth W. Goff prosecuted the case for Raoul's Special Prosecutions Bureau.