According to court documents, Smallwood allegedly conspired with others to apply for fraudulent Personal Paycheck Protection funds and then received kickbacks ranging from $4,000 to $12,000. In all, nearly $270,000 in fraudulent PPP funds were allegedly obtained.
"A lot of people like him are foolish because they thought they weren't going to check on their credentials on the forms and all these other things they submit," said high-profile defense attorney Chuck Peruto.
Peruto is not defending the former Eagles running back but has represented dozens of clients facing similar charges. He called the pandemic relief funds rife with fraud.
"It's so easy. People can get thousands of dollars in COVID-19 relief, and all you had to do is fill out forms, and people are saying, 'No one is going to catch me.' No one plans on getting caught when they commit a crime," said Peruto.
The Eagles drafted Smallwood in 2016. He played three seasons with the team.
Prosecutors also allege he applied for and received nearly $50,000 in pandemic relief loans, and instead of using the funds for what prosecutors called "defunct or recently registered businesses," he spent the money on personal expenses.
His attorney released a statement saying, "Since the onset, Wendell has done everything to cooperate to try and put this matter behind him and looks forward to continuing to do so."
So far, none of Smallwood's alleged co-conspirators have been charged.
Smallwood is charged with wire fraud and conspiracy charges.
He has a plea hearing in late December.
Peruto says he likely faces a year or less of jail time.