Will County Inmates Set Up PPP Loan Scam: Joliet Forfeiture

JOLIET, IL — A group of inmates needing money to post bail organized a phony Paycheck Protection Program loan scam from inside the Will County Jail, according to a civil forfeiture complaint filed Thursday by the Will County State's Attorney's Office of Jim Glasgow.

According to the complaint, the Joliet Police Department raided Adrian Bailey's house in the 300 block of Union Street on May 20, seizing $2,134 in cash. Prosecutors are now asking a Will County judge to make the money a forfeited asset for police.

A hearing at the Will County Courthouse is set for Sept. 8.

Back in May, Joliet police officers were discussing the latest area crime trends, including PPP loan fraud. "It was discussed how a large amount of incarcerated inmates at the Will County Adult Detention Facility were using help from outside sources to start fake businesses to get approximately $20,000 and subsequently get 'forgiveness' and not have to pay the U.S. government back," court records show. "These funds were then used to bond out inmates and retain high-end attorneys for pending criminal charges."

Around 11 p.m. on May 20, Joliet police raided a house in the 300 block of Union Street in search of guns and evidence linking people at the house to the ongoing PPP loan scam within the Will County Jail. The house was occupied by Konika Morrow and her two sons, Donta Bailey and Adrian Bailey, the forfeiture stated.

Joliet Police Detective James Kilgore helped search the house "during which numerous documents were recovered reference unemployment claims for Donta and Adrian Bailey as well as PPP loan documents of Adrian Bailey," the complaint outlined. "The amount of the PPP loan was for $20,605. Officer Kilgore asked about employment for Morrow's sons, Donta and Adrian Bailey, and she related that they are lazy and don't do anything."

Detective Jeff German also participated in the house raid on Union Street "during which five firearms were recovered above the ceiling tiles in the bathroom," the complaint stated.

Meanwhile, Joliet Police Sgt. Tim Powers stated he found three guns on Morrow's bed in her bedroom and a stack of papers next to a safe on the floor, court records show.

"One of the papers was in the name of Adrian Bailey and appeared to be a 2021 PPP loan application. The document indicated that Adrian had made approximately $48,000 last year," the forfeiture noted.

When Sgt. Powers asked Adrian Bailey's mother about her son being involved in a PPP loan scam, "Konika advised that she does not participate in that kind of activity. Konika advised that she has her own money and that she has a bank account with Chase Bank," court records state.

Detective German informed other Joliet officers that Donta Bailey received a check from First Midwest Bank on April 21 for $21,098 "from a PPP loan that was believed to be fraudulent," the forfeiture documents state. "This check was then deposited into his mother Konika Morrow's Chase Bank account. The signature on the back of this check, besides Donta's, was Konika Morrow."

During an interview with German, Donta Bailey told Joliet police he had last worked about two months earlier at the Burger King restaurant before it shut down.

"Donta stated that he sells French Bulldogs that he breeds with a couple of friends. Donta stated he also sells shoes at a friend's store," the complaint noted. "When asked if he was at a bank a month ago applying for a $20,000 loan, he stated that it wasn't him, and he didn't know what Detective German was talking about."

On May 21, German interviewed the First Midwest Bank manager. She told him that 17-year-old Donta Bailey came to the Joliet bank to obtain a PPP loan payment of $20,802, court documents reflect.

"The manager stated that she spoke with Donta and his mother about this being a suspicious PPP loan and that Donta was a juvenile and the payment was for owning a business that had at least $100,000 in income last year," the complaint advised. "Donta would not answer her questions, and his mother would interject and accuse her of discrimination."

Other relatives of Bailey and Morrow entered the Joliet bank and began filming the First Midwest Bank employees "and making verbal threats to the bank employees and the security guard," court records state. "After speaking with First Midwest Bank management, the money was issued to Donta in the form of a check. Donta advised he would be taking the money to another bank," the forfeiture noted.

On Thursday, the State's Attorney's Office filed the civil forfeiture complaint accusing the Bailey brothers and their mother of participating in PPP loan fraud.

Joliet Patch wrote about Konika Morrow in September 2020 after she filed a federal lawsuit against Joliet Police Officer Adam Stapleton accusing him of excessive force.

Stapleton got out of his squad car and tackled Morrow to the ground during a 2019 prayer vigil near the corner of South Ottawa and McDonough Streets that got broken up by Joliet police. "Because of Officer Stapleton's actions, Ms. Morrow suffered personal and pecuniary injures, including a tear in her meniscus, which will require surgery and rehabilitation," Morrow's federal lawsuit states.

As of this week, only Adrian Bailey has been formally charged in connection with the May 20 Joliet police raid at his mother's house. He was charged with illegal possession of ammunition, court records show. Meanwhile, Konika Morrow is still awaiting her trial in Will County in connection with obstruction of justice charges filed after her arrest by Officer Stapleton two summers ago.