⏱ 2 min read
Octavia Renee Murphy, a 37-year-old woman from Bourbonnais, Illinois, was sentenced to one year in prison for her role in a pandemic-related fraud scheme. On May 19, 2026, Murphy was found guilty of conspiracy to commit wire fraud, wire fraud, and money laundering. The scheme involved submitting false applications for pandemic-era relief, including Economic Injury Disaster Loan (EIDL) advances and Paycheck Protection Program (PPP) loans. Murphy recruited relatives, coworkers, and friends to file fraudulent applications, and when those applications were successful, they paid kickbacks to her.
Murphy’s scheme defrauded the U.S. Small Business Administration (SBA) of $169,949.97. She was the leader and organizer of a 14-defendant conspiracy and was motivated by greed, not financial need. At the time of the fraud, Murphy was gainfully employed by the State of Illinois at the Shapiro Developmental Center in Kankakee, Illinois.
On January 27, 2026, Murphy pleaded guilty to the charges before U.S. District Judge Colleen R. Lawless in Springfield, Illinois. During the sentencing hearing, Judge Lawless rejected Murphy’s request for a minimum sentence of one day of imprisonment, stating that she could not ignore Murphy’s role as the leader of the conspiracy.
In addition to her one-year prison sentence, Murphy was ordered to serve a two-year term of supervised release and pay $169,949.97 in restitution to the SBA. The case highlights the ongoing efforts to combat pandemic-related fraud and hold those responsible accountable for their actions.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Illinois
- Location: IL
- Source: DOJ Press Release
