37-year-old Octavia Renee Murphy of Bourbonnais pleaded guilty to conspiring with others to defraud the SBA (Small Business Administration) of nearly $170,000.  Prosecutors claimed she submitted false applications for pandemic era relief, including Economic Injury Disaster Loan (EIDL) advances and Paycheck Protection Program (PPP) loans. Murphy appeared in federal court (Tuesday).

U.S. District Judge Colleen R. Lawless sentenced Murphy to one year in prison for wire fraud, conspiracy to commit wire fraud and money laundering. Murphy will serve a two-year term of supervised release following her imprisonment and must pay $169,949.97 in restitution to the SBA.

According to the Central District of Illinois, Murphy admitted to recruiting relatives, co-workers and friends to file for the pandemic era relief, claiming to have a small business before and during the pandemic. When the relief went through, Murphy would get a portion of the money.

Murphy also said she filed PPP loan forgiveness applications for those same individuals and that she tried to disguise the PPP loan she received as for “payroll.”
During this time, prosecutors said Murphy was employed by the State of Illinois at the Shapiro Developmental Center in Kankakee.

Thirteen other defendants still face federal charges.  A trial date is set for July 6, 2026.

94.1 WGFA